Does Homework Help or Hinder Academic Success Essay

The debate about homework has been going on for a long time. Some say too much homework is bad, but there are different views. There are some people that believe that there is a minimal relationship between homework and if it helps or hinder academic success. A little amount of homework is said to be linked to better school results as well. Homework may also have a small effect on how a student does in school on a test. Homework may hinder academic success due to lack of sleep, stress, and no fun in between work, but at least 2 hours may prove to be beneficial to healthy homework habits. There are two sides to this debate, one side that says that too much homework hinders academic success and the other saying that it doesn’t affect it at all. Too much homework takes away free time for children. Once children get home, depending on how much homework they get, they have to work on all their homework. For example, children need time to themselves to play and just have fun not do work all the time. Jessica Lahey the author of the article â€Å"I Hate Homework. I Assign It Anyway. † states, â€Å"Children need time to themselves to play, read and imagine. † (Page 2). This displays that there are some people who do agree with the fact that kids should have fun and play. They shouldn’t be bombarded with homework. Children should also be able to spend time with their family. Yes, they do see their parents’ everyday but they do not really get to spend time with them because of all the homework given to them. The article, â€Å"Homework’s Diminishing Returns† by Harris Cooper states, â€Å"Opponents of homework counter that it can also have negative effects like increasing boredom with schoolwork and reducing the time students have to spend on leisure activities that teach important life skills. † (Page 2). Spending time with their parents’ can help them and their children bond together and learn life lessons together. Overall, playing and having fun can really make a child happy instead of being upset about homework. It raises their morale and he or she will become much happier knowing that there can be breaks for fun from time to time. This can affect academic success positively because children will become more content with how things are doing that they won’t mind the little amount of homework as long as they can have a little fun still. Homework can also cause stress as well. At a young age a child should not be stressed. In other words, children could just become tired and tired of staying up all night doing homework. Jessica Lahey, the author of â€Å"I Hate Homework. I Assign It Anyway. † says â€Å"In her film, Ms. Abeles claims that today’s untenable and increasing homework load drives students to cheating, mental illness and suicide. † (Page 1). Children should not have to think about things like this because choices like that can affect their whole life. This will make them do anything to try and get homework out of the way. The stress factor is very large with children dealing with homework and this may cause even students from top schools to become frustrated. Jessica Lahey states in her article, â€Å"Even elite private schools in New York City are vowing to lighten their homework load. † (Page 1). This is very important to note because elite schools are obviously expected to give a lot of homework. If they’re willing to lower their homework then that must mean that even top students probably feel that all that homework is too much for them. The bottom line is that homework can cause children to make bad decisions and create more problems than what they seem to have. It may also hinder academic success because the bad decisions, if made, can cause that child to have too much on his or her mind to even pay attention to how well they’re doing in school. Although, there are bad sides to homework, there is also a good side of it. Two hours of homework can prove to be beneficial towards a child’s academic success. Harris Cooper states in his article, â€Å"Homework’s Diminishing Returns†, â€Å"A little amount of homework may help elementary school students build study habits and learn skills developed through practice. † (Page 1). This showcases that there is a good side to homework. This doesn’t necessarily mean that homework should be taken away completely, but it means that some homework is good for students. Creating study habits by doing some homework can help a student’s academic success because this will help them with future assignments and so he or she can remember what they learn. Some children also seem to like having an ample amount of homework as it doesn’t cause too much stress. Harris Cooper also writes, â€Å"All children can benefit from homework but it is a very rare child who will benefit from hours and hours of homework. (Page 2). This proves that only very few children can really have something to say about how many hours of homework allow them to improve on what they have done in school. While a couple of hours of homework can prove to help academic success positively, too much of it may be moving more towards the negative side. Homework can hinder academic success stress and no fun in between work, but at least 2 hours may prove to be beneficial to healthy homework habits. This shows that there are both sides of the argument shown. There can be less time to have fun, spend time with family; it can cause problems for students as well. Although there are many actions being done based on opinions, this debate still goes on and there may not be a solution at all. Many people have different beliefs on homework and what should be done about it. It may continue on for a while and more questions may branch out from the main question: does the amount of homework determine if it helps or hinders a student’s academic success?

Landscape Architecture

BUILD ENVIRONMENT The term built environment refers to the human-made surroundings that provide the setting for human activity, ranging in scale from buildings and parks or green space to neighborhoods and cities that can often include their supporting infrastructure, such as water supply, or energy networks. The built environment is a material, spatial and cultural product of human labor that combines physical elements and energy in forms for living, working and playing. It has been defined as â€Å"the human-made space in which people live, work, and recreate on a day-to-day basis†.The â€Å"built environment encompasses places and spaces created or modified by people including buildings, parks, and transportation systems†. In recent years, public health research has expanded the definition of â€Å"built environment† to include healthy food access, community gardens, â€Å"walkabilty†, and â€Å"bikability†. Early concepts of built environments w ere introduced thousands of years ago. Hippodamus of Miletos, known as the â€Å"father of urban planning†, developed Greek cities from 498 BC to 408 BC that created order by using grid plans that mapped the city.These early city plans eventually gave way to the City Beautiful movement in the late 1800s and early 1900s, inspired by Daniel Hudson Burnham, a reformist for the Progressivism movement who actively promoted â€Å"a reform of the landscape in tandem with political change†. The effort was in partnership with others who believed that beautifying American cities would improve the moral compass of the cities and encourage the upper class to spend their money in cities. This beautification process included parks and architectural design. Modern built environmentCurrently built environments are typically used to describe the interdisciplinary field that addresses the design, construction, management, and use of these man-made surroundings as an interrelated whole a s well as their relationship to human activities over time (rather than a particular element in isolation or at a single moment in time). The field is generally not regarded as a traditional profession or academic discipline in its own right, instead drawing upon areas such as economics, law, public policy, public health, management, geography, design, technology, and environmental sustainability.Within the field of public health, built environments are referred to as building or renovating areas in an effort to improve the community’s well-being through construction of â€Å"aesthetically, health improved, and environmentally improved landscapes and living structures†. Urban planning The term â€Å"urban planning† indicates that much of the environment we inhabit is man-made and that these artificial surroundings are so extensive and cohesive that with regards to the consumption of resources, waste disposal, and productive enterprise, they are similar to organi sms.Public health In public health, built environments refer to physical environments that are designed with health and wellness as integral parts of the communities. Research has indicated that how neighborhoods are created can affect both the physical activity and mental health of the communities’ residents. Studies have shown that built environments that were expressly designed to improve physical activity are linked to higher rates of physical activity, which in turn, positively affects health.Neighborhoods with more walkability had lower rates of obesity as well as increased physical activity among its residents. They also had lower rates of depression, higher social capital, and less alcohol abuse. Walkability features in these neighborhoods include safety, sidewalk construction, as well as destinations in which to walk. In addition, the perception of a walkable neighborhood, one that is perceived to have good sidewalks and connectivity, is correlated with higher rates of physical activity. Assessments of walkability have been completed through the use of GIS programs.One such program, Street Smart Walk Score, is a walkability assessment tool which determines distances to grocery stores and other amenities, as well as connectivity and intersection frequency using specific addresses. Assessments such as Street Smart Walk Score can be utilized by city and county planning departments to improve existing walkability of communities. Public health also addresses additional components of built environments including â€Å"bikeability† and healthy food access such as proximity to grocery stores and community gardens.Bikeability refers to the access that an area has granted to safe biking through multiple bike paths and bike lanes. Both walkability and bikeability have been cited as determinants of physical activity. Access to healthy food is also an important component to the built environment. A higher density of convenience stores has been associ ated with obesity in children. In contrast, improved access to community supermarkets and farmer’s markets is correlated with lower overweight status. Specifically in low income neighborhoods, the presence of a local grocery store is correlated with lower BMI/overweight risk.Community gardens are also considered a part of the built environment, and have been shown to increase fruit and vegetable intake among gardeners. Scholars say that community gardens have also been shown to have positive social and psychological impacts that lead to lower levels of stress, hypertension, and an improved sense of wellness, affecting the overall health of the individual and the community. The intersection of public health with other disciplines is evident in the design process of built environments which includes environmental planning, policy development and land-use planning.Research suggests that people are more active in mixed-use communities or those that incorporate retail and resident ial and densely populated areas as well as those with good street connectivity. Those who preferred to walk and live in walkable environments often have lower obesity rates and drive less over those who preferred living in auto-dependent environments. The strength of the evidence for reducing obesity through environment has been highlighted by the Center for Disease Control in its Common Community Measures for Obesity Prevention Project, which includes measures of healthy food access and physical activity environments.Landscape architecture In landscape architecture, the built environment is understood to mean a human-made landscape, as distinguished from the natural environment; for example, a city park is a built environment. NATURAL ENVIRONMENT The natural environment encompasses all living and non-living things occurring naturally[->0] on Earth[->1] or some region thereof. It is an environment that encompasses the interaction of all living species. The concept of the natural env ironment can be distinguished by components: Complete ecological[->2] units that function as natural[->3] systems without massive human[->4] intervention, including all vegetation[->5], microorganisms[->6], soil[->7], rocks[->8], atmosphere[->9], and natural phenomena[->10] that occur within their boundaries.  §Universal natural resources[->11] and physical phenomena[->12] that lack clear-cut boundaries, such as air[->13], water[->14], and climate[->15], as well as energy[->16], radiation[->17], electric charge[->18], and magnetism[->19], not originating from human activity.The natural environment is contrasted with the built environment[->20], which comprises the areas and components that are strongly influenced by humans. A geographical area is regarded as a natural environment. It is difficult to find absolutely natural environments, and it is common that the naturalness varies in a continuum, from ideally 100% natural in one extreme to 0% natural in the other. More precisely, we can consider the different aspects or components of an environment, and see that their degree of naturalness is not uniform.If, for instance, we take an agricultural field, and consider the mineralogic composition[->21] and the structure[->22] of its soil, we will find that whereas the first is quite similar to that of an undisturbed forest soil, the structure is quite different. Natural environment is often used as a synonym for habitat[->23]. For instance, when we say that the natural environment of giraffes is the savanna[->24]. PLANT STRUCTURE AND FUNCTIONS The â€Å"Typical† Plant Body The Root System (Usually underground)  §Anchor the plant in the soil  §Absorb water and nutrients  §Conduct water and nutrients Food Storage The Shoot System (Usually above grounds)  §Elevates the plant above the soil  §Many functions including:  §photosynthesis  §reproduction & dispersal  §food and water conduction TYPE OF PLANTS Cacti (Cactus) Cactus plants are well ad apted to hot and dry weather by storing water in their succulent stems. They are also known for their spines, for which they are famous. Flowers Flowers are the reproductive part of angiosperms, also known as flowering plants. Herbs Herbs are used for culinary, medicinal and spiritual uses. In cuisine, the leaves of the herb are normally the only part used.All parts of herbs are used in various medical or spiritual practices. Shrubs and Bushes Usually under 6 m tall, shrubs and bushes are categorized as woody plants. Shrubs have multiple stems and many are covered with flowers of all shapes and sizes. Trees Trees are everywhere in the world. Trees are tall, large and some are very old. Trees are important in fighting soil erosion and responsible for the clean oxygen we breathe. Vegetables The term ‘vegetable' is not actually a scientific classification of a plant, but rather strictly a culinary term.Vegetables are parts of plants (flower buds, seeds, stems, fruits, etc) that a re edible and used in culinary dishes. PLANT Plants, also called green plants (Viridiplantae in Latin), are living organisms of the kingdom Plantae including such multicellular groups as flowering plants, conifers, ferns and mosses, as well as, depending on definition, the green algae, but not red or brown seaweeds like kelp, nor fungi or bacteria. Green plants have cell walls with cellulose and characteristically obtain most of their energy from sunlight via photosynthesis using chlorophyll contained in chloroplasts, which gives them their green color.Some plants are parasitic and may not produce normal amounts of chlorophyll or photosynthesize. Plants are also characterized by sexual reproduction, modular and indeterminate growth, and an alteration of generations, although asexual reproduction is common, and some plants bloom only once while others bear only one bloom. Precise numbers are difficult to determine, but as of 2010, there are thought to be 300–315 thousand speci es of plants, of which the great majority, some 260–290 thousand, are seed plants.Green plants provide most of the world's free oxygen and are the basis of most of the earth's ecologies, especially on land. Plants described as grains, fruits and vegetables form mankind's basic foodstuffs, and have been domesticated for millennia. Plants enrich our lives as flowers and ornaments. Until recently and in great variety they have served as the source of most of our medicines and drugs. Their scientific study is known as botany. [-;0] – http://en. wikipedia. org/wiki/Nature [-;1] – http://en. wikipedia. org/wiki/Earth [-;2] – http://en. wikipedia. org/wiki/Ecological -;3] – http://en. wikipedia. org/wiki/Nature [-;4] – http://en. wikipedia. org/wiki/Human [-;5] – http://en. wikipedia. org/wiki/Vegetation [-;6] – http://en. wikipedia. org/wiki/Microorganisms [-;7] – http://en. wikipedia. org/wiki/Soil [-;8] – http://en. w ikipedia. org/wiki/Rock_(geology) [-;9] – http://en. wikipedia. org/wiki/Atmosphere [-;10] – http://en. wikipedia. org/wiki/Natural_phenomenon [-;11] – http://en. wikipedia. org/wiki/Natural_resource [-;12] – http://en. wikipedia. org/wiki/Physical_phenomena [-;13] – http://en. wikipedia. org/wiki/Air -;14] – http://en. wikipedia. org/wiki/Water [-;15] – http://en. wikipedia. org/wiki/Climate [-;16] – http://en. wikipedia. org/wiki/Energy [-;17] – http://en. wikipedia. org/wiki/Radiation [-;18] – http://en. wikipedia. org/wiki/Electric_charge [-;19] – http://en. wikipedia. org/wiki/Magnetism [-;20] – http://en. wikipedia. org/wiki/Built_environment [-;21] – http://en. wikipedia. org/wiki/Mineralogy [-;22] – http://en. wikipedia. org/wiki/Soil_structure [-;23] – http://en. wikipedia. org/wiki/Habitat [-;24] – http://en. wikipedia. org/wiki/Savanna

Cause And Effect Essay On Smoking Example For Students

Cause And Effect Essay On Smoking Microsoft Windows 98 README for Online Services and Internet Service ProvidersApril 1998 (c) Copyright Microsoft Corporation, 1998HOW TO USE THIS DOCUMENTTo view the document on-screen in Notepad, maximize the Notepad window. To print Services.txt, open it in Notepad, and then on the File menu, click Print. CONTENTSOVERVIEWPRODUCT SUPPORT AND PAYMENTSTO SET UP A NEW ACCOUNTTO SET UP YOUR COMPUTER TO USE AN EXISTING ACCOUNTOVERVIEW========The online services and Internet service providers (ISPs) listed in this folder are made available for your convenience. You can select any of the available online services or Internet service providers you like. PRODUCT SUPPORT AND PAYMENTS============================By selecting an online service or Internet service provider (ISP) listed in this folder, you are establishing an account with that company directly, not with Microsoft Corporation. The service you select can provide you with specific payment instructions. Microsoft does not provide technical support for the services that your online service or ISP renders. If you have any questions concerning a particular online services or Internet service providers policies or content, contact them directly. Technical Support contact information for the online services/ISPs in this folder are listed below. America Online (in the U.S.)-Telephone:Technical Support: 1 (800) 827-3338Sales and Billing: 1 (800) 827-6364America Online (in the U.K.)-Telephone: Technical Support Customer Service Centre: 0800 279-7444General Inquiries: 0800 376-5432Online:Further information about terms and conditions are available online. AOL Canada (in Canada)-Telephone:Technical Support: 1 888 265-4357General Inquiries: 1 888 265-4357Online:Further information about terms and conditions are available online. ATT WorldNet Service Telephone (U.S., Puerto Rico, and U.S. Virgin Islands):Technical Support: 1 800 400-1447General Inquiries: 1 800 967-5363Online:Members should get support at http://www.worldnet.att.net/careGeneral information for non-members is available at http://www.att.netCompuServe (in the U.S. and Canada)Telephone:Customer Service: 1 (800) 848-8990Signup Support: 1 (800) 336-6823Online:To access online assistance, type GO MEMBER. CompuServe (in the U.K.)Telephone:Customer Service:0990 000-400Signup Support:0990 134-819Technical Support:0990 000-100Online:To access online assistance, type GO MEMBER. For real-time technical support, type GO UKHF to access the UK Help Forum. The Microsoft Network (MSN)Telephone:Dial 888-MSN-TIPS (888-676-8477) for FastTips on MSN issues. Customer Service:Australia 02 9934 9000Canada (English) 800-386-5550Canada (French) 800-952-1110Canada TDD (English) 800-840-9890United Kingdom 0345 000 111United States 800-386-5550United States TDD 800-840-9890If you are calling from a country not listed above, dial 44 181 607 0012 for English-language Customer assistance. Technical Support:Australia 02 9934 9000Canada (English) 425-635-7019Canada (French) 425-635-7020Canada TDD (English) 425-635-4948United Kingdom 0345 000 111United States 425-635-7019United States TDD 425-635-4948If you are calling from a country not listed above, dial 44 181 607 0012 for English-language Technical assistance. Online:Click MSN Member Support E-mail to send in your question. Prodigy Internet-Telephone (U.S. and Canada only):Customer Service: 1 (800) 213-0992Signup Support: 1 (800) 213-0992Online:To access online assistance, go to HELP. TO SET UP A NEW ACCOUNT=======================If you decide to select one of the online services or Internet service providers listed in this document, click the icon for that particular online service or Internet service provider in the Online Services folder on the desktop. This begins the installation process for setting up access to that service on your computer. TO SET UP YOUR COMPUTER TO USE AN EXISTING ACCOUNT==================================================If you already have an account established with one of the online services or Internet service providers listed in this document, click the icon for that particular service in the Online Services folder on the desktop to begin the installation process for use with your existing account. Each online service/ISP is responsible for the way this process is handled.

Strategic planning-organisation direction and stategic presentation Assignment

Strategic planning-organisation direction and stategic presentation - Assignment Example The strategic change of its products is in line with latest developments and requirements in the industry. Its marketing model is inclusive. It includes, (a) promotion, through advertising, personal selling, and excellent public relations (b) Pricing, it involves giving discounts, bundling and thirdly (c) the product itself, this include the product design, uniqueness, packaging, brand name, warranty, customer support and its strategic location for order processing, transportation channels and distribution (Helft, Vance 2010 pg.20). Stakeholders hold the key to the company’s reputation, success and even failure. Apple Inc. is one of the companies with multiple stakeholders namely; the shareholder: preferred and common individuals/companies, lenders, Apple employees, manufactures and their employees, software developers, customers, suppliers and the music industry. As any stakeholder they expect good management of the company, accountability and transparency and consequently high returns in the form of dividends from the company’s vast growing cash reserves, competition from emerging firms (Markoff, 2007 pg.10-12.). However, there are adverse effects in doing so as can be seen in the current succession plans as this will shift focus on continuous innovation, low quality products, poor service and the eventual loss of customer royalty, and this is risky under the prevailing stiff competition. Expected high returns will eventually lead to quality rather than quantity; sales will be low and the brand name will consequently loose value (Markoff, 2007 pg.12-14.). With its Headquarters in California, Silicon valley, US, the company comprises of six buildings, covering a total area of 79,000 meters square. Distribution logistics to various destinations and local offices worldwide are simplified due to its location.

Steel Industry Term Paper Example | Topics and Well Written Essays - 7500 words

Steel Industry - Term Paper Example This has been the case in the oil industry. However, the steel industry is more complex. The steel industry does not suffer from scarcity of resources. Hence the same barriers of entry to the industry do not exist. Nor does the steel industry suffer from controls exercised by OPEC; the cartel that controls the oil industry. This lays the foundation of a very different and potentially more volatile industry especially when there are some governments that subsidise their steel industries which has an impact on the level and effectiveness of competition. There is little doubt that with the broad range of industries that are reliant on steel this is an industry with a long term future. However, this does not assure the future of any particular firm within the industry nor does it indicate the way that firms will have to compete within the industry. One thing is certain; the firms that are active within the industry will need to understand the influences, and this is likely to impact the performance of the companies. In order to develop an understanding of the steel industry as a whole the paper will start by giving a good overview of the state industry in terms of the cost at the present time. This will help to provide the context and background relevant to understanding the sector. Following the assessment of the industry three companies have been chosen, in order to give an insight into the way firms within the industry are performing. These are different in terms of size, types of steel produced and each firm has been incorporated in a different country, although all of the companies compete in the global marketplace. The three companies chosen are; The United States Steel Corporation, China Precision Steel Inc. and Arcelor Mittal. 2. The Steel Industry 2.1 Historical Performance of the Steel Industry In the middle of the 19th century, steel was used throughout the world, and the United States became the largest single steel producing nation by the end of the 19th centu

Management and leadership Research Paper Example | Topics and Well Written Essays - 750 words

Management and leadership - Research Paper Example People, religion and languages Mixture of indigenous South Pacific tribes, Asian (Chinese primarily), African, French, Spanish, and number of Americans, all are found on the land. Indigenous 50% and rest can be divided into Christian, Buddhist, and Islamist in terms of religion on the land. Indigenous languages as well as English, Spanish, and French, all are used. Threats There are a number of natural and unnatural threats associated with establishment of a business in Kava such as tidal waves/tsunami, typhoons/Hurricanes, tornadoes, floods, fires, volcanic eruptions, earthquakes, HIV/AIDS, petroleum spill, high risk for avian flu and terrorism, from within and outside the country. Strengths There are various strengthening points while considering a business expansion program at Kava. Governmental service such as local, state and national level including the military are available. The organization will be community-based organization. Faith based groups are also available. Economy enriched with Petroleum, coffee, cocoa, spices, bananas, sugar, tourism, fishing, and natural gas all are present. In addition to all, cheap quality laborers can also be found. Strong government support and indirect support of a bunch of organizations is also at hand. Problem Analysis and Proposed Solutions to the Decisions Made Kava has recently been affected by a string of natural disasters. This state of affairs left the people in the lurch and the country’s economy is in a state of shamble. The feasibility study conducted for a greater presence at Kava identified issues associated with the country and how aforesaid company, its key stakeholders and the country of Kava would be benefited. The report suggested decision-making business techniques and tools available on the Chevron Project Development and Execution Process web site for the promotion of their business. The tools and methods used potential business analysis based on SWOT. The report includes extreme structural, environmental, and economic damages by so many natural calamities. Further, there is a great potential for repeated natural disasters like volcanic eruptions, earthquakes and tsunami. There are multiple ethnic groups, religious groups, different languages, ineffective communication and lack of cooperation by the citizens, providing potential threats for terrorist attacks in and outside the country. Last but not the least, since half of the population of Kava comprised of teenagers, hence, Chevron may face shortage of skilled and unskilled laborers and lack of available engineers and scientists on the island minimize the chances of business to grow until and unless mentioned issues are addressed. The thorough study based on the SWOT analysis techniques indicates that an idea of establishing and flourishing business in an island where environment for the business is not conducive firstly due to array of disasters that comes to surface the other day is not likeable. Second and foremos t thing to carry out business in the above-mentioned island is the law and order situation of that country. In that, particular country threats of inside and outside attacks are likeable. Problem formulation comes with a number of tools and techniques that can be employed for finding solutions (Flood & Jackson, 1991). In terms of problem formulation, the key steps that will be taken for finding appropriate solution is through the usage of flowcharts,

Change Agents Research Paper Example | Topics and Well Written Essays - 250 words

Change Agents - Research Paper Example The change agent is unbiased and he looks for solutions to resolve the issue taking into considerations the needs of all parties involved. Resistance to change can negatively impact the plans to implement change at a company. The managers must communicate with their employees to explain to them how the change management initiatives will affect their job routines. Change initiatives often fail due to a lack of change management (Swati, 2012). Resistance to change can hinder the ability to change the culture of an organization. Management intervention is needed to resolve resistance to change (Mariana, Violeta, 2011). The managers have to demonstrate to the employees the benefits of the initiative. If resistance to change persists it can have devastating effects on a company. The efficiency and productivity of the workers decreases which hurts the profitability of the firm. Long periods of resistance to change can escalate into work strikes or even complete shutdown of an operation. Managers have to react in a proactive manner to handle resistance to change effectively. Mariana, P., Violeta, S. (2011). Opportunity to Reduce Resistance to Change in a Process of Organizational Change. Annals of the University of Oradea, Economic Science Series, 10(2). p698-702. Retrieved February 9, 2013 from EBSCOhost database. Swati, M. (2012). Managing Employee Resistance to Change a Comparative Study of Indian Organizations and NMCS in Delhi-NCR Region. Researchers World: Journal of Arts, Science & Commerce, 3(4). p64-71. Retrieved February 9, 2013 from EBSCOhost

Cash Flow Management in the Lawrence Simulation Essay

Cash Flow Management in the Lawrence Simulation - Essay Example It is in this situation that crisis has struck. Mayo has defaulted on payments for the weeks of 17 through 30 March. Further news is that Mayo will not be paying anything until the week of 14 April. Lawrence must negotiate with Mayo, Gartner, and Murray in order to speed up payments from Mayo and possibly further defer payments to Gartner and Murray. Borrowing from the bank is to be managed to minimize the outstanding balance and subsequent interest expense. Analysis: Lawrence faces two problems, a short-term cash-flow problem, and a larger and more significant strategic problem involving an unhealthy dependence on a single customer and lack of diversity amongst suppliers. We are tasked with the short-term cash flow problem at hand. If Mayo is allowed to proceed with delays of payment until the week of 14 April, the company will suffer a cash-flow deficit of up to $ 411,000 in excess of the $1.2 million line of credit for the period of 31 March through 13 April. Based on the existing payment schedule, there are no savings in interest expense to be gained by forcing Murray to accept delays in payments. If Lawrence chooses not to attempt a negotiation with Gardner for additional time to meet outstanding payments, the interest expense on borrowing will be $3,821 more than if Lawrence attempts to push Gartner to accept further delays in payment, regardless of the terms offered. Is the relationship with Gartner worth $3,821? How much would Lawrence spend to develop a new supplier?

Introduction on polymers Essay Example | Topics and Well Written Essays - 1500 words

Introduction on polymers - Essay Example Thermosetting polymers the chains become cross-linked so that the solid materials are produced that can not be softened and that ca not flow. Polymers are usually made in one of two polymerization process. In condensation-polymerization the linking of molecules creates a by product, which is usually water nitrogen or hydrogen gas. Thermoplastic polymers consist of a series of long-chain polymerized molecules in which all the chains are separate and can slide over one another. Thermoplastic polymers The long chains of thermoplastic polymer are connected by weak forces alongside the chemical bonds extremely strong. When they are heated the walls weaken and the polymer becomes soft and flexible at a high temperature and becomes a viscous melt. The cycle can be reversed by cooling of the materials. Thermoplastic elements usually can be of semi-crystalline structure or amorphous structure. Civil engineering materials such as polyester, nylon 66 and polycarbonate are the best examples of a morphous thermoplastic polymers. The developments polymers technology has led to high performing types of polymers such as polythersulphone which is amorphous in nature and polyetheretherketone which are semi crystal-line. The above two are more efficient than the normal thermoplastic, although they are not employed in civil engineering due to high costs. Thermosetting polymers They can be used in two separate ways firstly as a composite that is when combined with fibrous materials and secondly when as an adhesive and maybe as epoxies. They are formed in two stage chemical reaction when a polymer such as polyster, vinylester or epoxy is reacted with a curing agent. The reaction can be performed in a normal room temperature or the application of either controlled heat or pressure. Thermosetting polymers are strong in nature and can be affected by heat. The two procedures used to polymerize the thermosetting polymers used in civil engineering are the cold system that are cured at ambi ent temperatures and the hot cure system whereby polymerization is performed at elevated temperatures. Polymer science The research on polymer science continues to come up producing new products in the market. The polymer science and engineering are marching together although they are more interested on new materials being produced. Poly was scientifically born to understand how rubber and plastic works and they can not be separated. Polymers are now forming the basis of clothing and automobiles among others. New elastomeric, plastics, adhesives, coatings and fibers among others are being invented by the use of new technology in science. The scientific theory accepts the relationship between polymer structure, physical property and their behavior. Polymers are playing a very important role in processing of other industrial products. Anisotropy in thermoplastic polymers plays a significant role in thermal conductivity. Highly drawn semi-crystalline polymer samples can have a much hig her thermal conductivity as a result of orientation of the polymer chains in the direction of draw. For amorphous polymers, the increase in thermal conductivity in the direction of the draw is usually not higher than two. Many polymers experiment a viscous reaction as an elastic response towards stress and strain. Combinations of some elastic and various viscous elements are being used to determine the melting behavior of polymers. The above characteristics make them be classified under the

Contemporary issues in HRM Essay Example | Topics and Well Written Essays - 2250 words

Contemporary issues in HRM - Essay Example The human resource management requires fighting for the values, ethics, culture, in their organizations, especially in case of diversified working environment which takes place due to globalisation. Fluctuations in the economy, global advancement, workforce diversity and rapidly transforming business as a result of globalisation tend to generate many new challenges for human resource management. Recruitment and management of diversified workforce and checking the availability of skilled labour is another challenge faced by the human resource management. The objective of the study is to analyse how globalisation is leading to adopt standardised human resource management (HRM). The aim is to study the extent of national differences in human resource management as explained by culture and institutions and then draw a conclusion to the study. There lies a significant relationship between globalisation and standardisation. Standardisation of the human resource practices are considered much important and are considered as one of the most critical elements at workplace in the area of globalisation. The concept of globalisation existed for the past several years, but in recent scenario introduction of various technologies has led to the acceleration of globalisation (Friedman, 2007). In order to survive in the global competitive market human resource management is considered to be necessary. The requirement of structuring human resource systems worldwide has mandated the adoption of standardised policies and practices in the global businesses. There exists a lack of awareness in the field of awareness. In discussing issues relating to standardisation in the global organizations, it becomes very obvious for the executives to exhibit lack of awareness in understanding the critical needs of standardisation. Standardisation is e valuated as the vital component in the foundation of globalisation

Is Management an Art or a Science Essay Example for Free

Is Management an Art or a Science Essay One of the enduring questions in the field of management is whether it is an art or a science. In order to be able discuss whether management is an art or a science we need to define what ‘management’, ‘art’ and ‘science’ are. Management is a set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organizations resources (human, financial, physical, and information) with the aim of achieving organizational goals in an efficient and effective manner. In general an art defines as skill in conducting any human activity and science as any skill or technique that reflects a precise application of facts or a principle. Management as a science would indicate that in practice, managers use a specific body of knowledge consisting of principles, generalizations, approaches and concepts to apply in certain situations. That is, when faced with a managerial problem, the manager who believes in the scientific foundation of his or her craft will expect that there is a rational and objective way to determine the correct course of action. The principles of management have been developed and formulated on the basis of observation, research, analysis and experimentation and also based on relationship of cause and effect like other sciences. Another proponent of the management as science, many early management researchers subscribed to the vision of managers as scientists. The scientific management movement was the primary driver of this perspective. Scientific managements emphasis on both reducing inefficiencies and on understanding the psychology of workers changed manager and employee attitudes towards the practice of management. These are the basic characteristics that can be proved management is a science, but not exactly. Management as an art requires no specific body of knowledge, only skill. Conversely, those who believe management is an art are likely to believe that there is no specific way to teach or understand management, and that it is a skill borne of personality and ability. One more reason for considering management as an art is that in many situations, practicing managers are unlikely to believe that scientific principles and theories will be able to implement in actual managerial situations. Instead, these managers are likely to consider a broad range of social and political factors, and likely to take different actions depending on the context of the problem. And application of management knowledge calls for innovativeness and creativity. In this case managers go on discovering new ideas, relationships and more efficient ways of doing things. Both views of management, as a science or as an art, can provide ample evidence to support heir viewpoints, and they all seem correct and reasonable from their perspective. But an efficient manager has to acquire a theoretical knowledge of management and subsequently, use it to develop it and, gather experience. Robert Hilkert has beautifully explained that â€Å"In area of management , science and art are two sides of the same coin† Thus, in my opinion I think that management is a combination of both science and art, because managing as practice is an art and the organized knowledge underlying the practice is a science.

Gentlemen Prefer Blondes Comedy Essay Example for Free

Gentlemen Prefer Blondes Comedy Essay Gentlemen Prefer Blondes is a 1953 Musical-Comedy released by 20th Century Fox, directed by Howard Hawks and starring Marilyn Munroe and Jane Russell; the two greatest sex symbols of the era. The cameras point of view is that of the male gaze, where women are regarded as objects of fascination and the men are assumed to have a position of power. Hawks shows how it can be easily hijacked by females smart enough to control, manipulate and ultimately blur the male gaze. As much as this film is shot for the male gaze it is as much for a female audience as it is for males. In the song-and-dance sequence, When Love Goes Wrong, the two female protagonist had just been expelled from the hotel by Gus. Though the situation for Lorelei and Dorothy should be one where they are left helpless and powerless the scene however displays the opposite. In the entire scene both female protagonist are captured front and center with close ups and the lighting on their faces is well defined which gives them a sense of importance and power. At the same time the men gather around them captivated, giving their undivided attention to the females as they sing and dance; giving them a position of control over the men. Their position of power is so prominent that they even get the admiration of young boys who seem to be gypsys. Gypsys are known to be quick, sharp and in control when it comes to stealing but in this scene their heads are turned by the sensual Lorelei and they are totally distracted. Bothe females are well aware of their manipulative powers as Dorothy encourages Lorelei to use her charms, saying, Do it now, do it! What appears to be submissive to the male gaze, in this scene however they put on a chow in exchange to negotiate their presence and have their voices heard in a dominantly male world. When the females are seated they appear to be two damsels in distress, however the movement of standing up represents liberty and the space they command when dancing communicates freedom and power. A melancholy moment turns to a vibrant and fun sing-and-dance where they reject the actions of men to have power over their emotions. Though the scene is shot in the view of the male gaze the line is blurred when Lorelei and Dorothy use their sensual and attractive appearance to control, manipulate and command power in a dominantly male world. By this the scene takes a turn to cater to the female sight giving a sense of empowerment and independence in a situation where they should be the damsels in distress.

Concepts of Mergers and Acquisitions

Concepts of Mergers and Acquisitions MA CONCEPTS Introduction â€Å"The phrase Mergers and Acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying and selling and combining of different companies that can aid, finance or help a growing company in a given industry grow rapidly without having to create another business entity† The above sums up in a nutshell the concept of mergers and acquisitions. There are multiple reasons for companies to get into MA activity whether to expand into a new market or geography, to gain market share in a current market, to overcome competition or for regulatory reasons as some governments make a tie up mandatory to operate in their local economy. However it is essential to mention that in the current economic scenario MA has become an essential tool for companies to expand and grow, as successful MA strategy can be a differentiating factor for successful organization. The words and Mergers and Acquisitions are quite often used interchangeably in the current corporate world and hence can be seen in the project as well. Here is an attempt to list out some salient features which differentiate between the terms Mergers and Acquisitions. Merger A Merger can be descried as a combination of two companies into one larger company; such activities are normally voluntary in nature and involve a stock swap or cash payment to the target organization. Stock swaps allow the shareholders of both companies to share the risk involved in the deal. A merger normally results in a new company with a new brand and a new company name being created. Oxford Dictionary of Business defines mergers as â€Å"A combination of two or more businesses on an equal footing that results in the creation of a new reporting entity formed from the combining businesses. The shareholders of the combining entities mutually share the risks and rewards of the new entity and no one party to the merger obtains control over another. Acquisition Acquisitions or takeover are different from Mergers. In the case of an acquisition a company unilaterally relinquishes its independence and adopts to the acquiring firms plans. As a legal point of view the target company ceases to exist as the buyer â€Å"swallows† the business. Acquisitions have the following characteristics They are a part of a well-considered company development plan It is a unilateral process Top management structure will have fewer problems Contractual regulations are simpler Time taken for an acquisition is normally shorter than a merger. However it is essential to mention here that whether a purchase is to be considered as merger or an acquisition actually depends on the whether the purchase is friendly or hostile or in the manner it is announced. The real difference hence lies in the way it is communicated and the way it is received by the shareholders, directors and employees of the target company. History of MA Mergers and Acquisition movements were normally defined and associated with the behavior of US organizations. Various authors have tried to classify the merger movements into wave. The most prominent was Weston who in 1953 described three major periods of merger movements while studying the US business behavior. Merger waves are a very generic way to describe the predominant strategy that was being adopted by organizations in that era. This has been interpreted by the different authors in different ways depending on how they have perceived by them. However it would be wrong to consider that all organizations followed the same strategy as described in the various. The start or the first wave of the Merger movement is said to be have been post the Sherman Act in 1890. Prior to 1890 there was a predominance of the polypoly market structure, this was reduced post 1890 and partial monopolies started increasing. The economic history has been divided into Merger Waves based on the merger activities in the business world as: Period Name Facet 1889 1904 First Wave Horizontal mergers 1916 1929 Second Wave Vertical mergers 1965 1989 Third Wave Diversified conglomerate mergers 1992 1998 Fourth Wave Hostile takeovers; Corporate Raiding 2000 Fifth Wave Cross-border mergers The Great Merger Movement was primarily a US business phenomenon from 1895 to 1905. It is said that during this time 1800 of small firms disappeared into consolidations with similar firms to form large, powerful institutions that dominated their markets. The relaxation of corporate laws in the United States helped the mergers, transportation and communication networks were developed which helped achieved economies of size. The second wave (1916 to 1929) saw even greater activity in mergers. The motive behind these mergers was vertical integrations. Organizations tried to achieve technical gains and to avoid their dependence on other firms for raw materials. The third wave saw the large conglomerates looking at diversification in the 60s. the process actually reached its zenith during the merge wave and was carried to its logical extreme by the conglomerate firms that rose to prominence during that time. The fourth wave in 90s saw increase in hostile takeovers and corporate raiding by the large firms. This was a wave during which vulnerable companies were grabbed up by the larger firms. The fifth wave has been categorized as starting from the year 2000 onwards and has seen a trend of increase in Cross border acquisitions. The rise of globalization has seen increased the market for cross border MA. This rapid increase has taken many MA firms by surprise as most of them never used to consider this due to the complexity involved in cross border MA. The success of these acquisitions was also limited and we saw a vast majority of them failing. Even then in 1997 alone there were over 2300 cross border acquisition worth a total of approximately $298 Million. Source: Boston Consulting Group Research Report â€Å" The Brave New World of MA-How to Create value from MA†, July 2007 Types of Mergers and Acquisitions There are various types of mergers and acquisitions depending on the type of the business structure. The classification can be based on the type of companies merging or by the way the MA deal is being financed. Here is some type of mergers on the basis of the relationship between the two companies that are merging: Horizontal Merger- This type or a merger is between two companies that share the same product line and markets and are in direct competition with each other Vertical Merger This is between a customer and company of between a supplier and a company Market Extension Merger This between two companies that sell the same products in different geographies or markets Product Extension Merger This is between two companies that are selling different but related products in the same market. Circular Merger A circular merger is very similar to a product extension merger however in this case the products being sold are completely unrelated. The merger brings in benefits by utilizing the same channels for marketing these unrelated products, allowing shared dealerships. An example of this kind of a merger is of McLeod Russel (A Team company) with Eveready Industries ( A batteries company) in 1997. McLeod Russel however was de-merged from Eveready in 2005. Conglomeration This type of a merger is between two companies that have no common business areas. Mergers can also be classified depending on how the merger is being financed as described below Purchase Mergers This kind of a merger occurs when a company purchases another. The purchase is made through cash or through the issue of a debt instrument. Consolidation Mergers In this type of a merger a new company is formed and both the companies are bought and combined under the new entity. Type of acquisitions can be described as below Amalgamation In this type of an acquisition a new corporation is created by uniting the companies voluntarily. Acquisition/Takeover In this form one company acquires another companies total or controlling interest. The acquired company either operates as a subsidiary or can be liquidated completely. Sale of Assets A company can sell off all its assets to another and cease to exist. Holding Company Acquisition This involves the acquisition of either the total or majority of a firms stock by a company. The purpose of this form is mainly to gain management control of other companies Reverse Merger In this form of an acquisition a private company with strong prospects buys a publicly listed shell company, usually one with no business or limited assets. This helps the private company to get publicly listed in a short span of time. All mergers though have one common goal and that is to create a synergy between two companies which makes the value of the combined companies to be greater than the sum of the two companies MA Process MA process can be laid down in 3 basic phases First Phase Start with an Offer The acquiring firm once decides that they want to do a merger of acquisition, they start with an offer. The acquiring company starts working with financial advisors and investment bankers to initiate contact with the target company. The acquiring must have a strategy for a merger programme, formulated by company management and approved by the director and majority stockholders. The acquiring company also at this point does a soft due diligence with the help of publicly available data and financial advisors. The purpose of this is to arrive at an overall price that the acquiring company is willing to pay for its target in cash, shares or both. Second Phase Targets Response Once the offer has been made the target company can do one of several things mentioned below Accept the offer If the target companies top management and shareholders are happy with the offer they can simply accept the offer and go ahead with the deal. Attempt to Negotiate   If the target company management and shareholders are not satisfied with the offer they might try and work out more agreeable terms with the acquiring company. Since a lot is stake for the management of the target i.e. their jobs in particular, they might want to work out better deal to keep their jobs or leave with a big compensations package. Target companies which are highly sought after with multiple bidders would obviously have a better chance of negotiating a sweeter deal. Even manager who are crucial to the operation of an organization have a better chance of success into negotiating a good deal for them. Execute a Poison Pill or similar Hostile Takeover Defense A poison pill can be initiated by a target company if it observers a potential hostile suitor acquiring a predetermined percentage of Target company stock. To execute its defense, the target company grants all shareholders except the acquiring company options to buy additional stock at a dramatic discount. This dilutes the acquiring companys share and thwarts the potential hostile takeover attempt.  · Find a White Knight In this alternative a target company seeks out a friendlier company as a potential acquiring company. The friendlier company would offer an equal or higher price with better terms as compared to a hostile takeover bid. Third Phase or Closing the Deal Once the target company accepts the offer and all the regulatory requirements are met then the deal would be executed. The acquiring company will them pay for the target companies shares with cash, stock or both. A cash-for-stock transaction is fairly straightforward: target company shareholders receive a cash payment for each share purchased. When a company is purchased with stock, new shares from the acquiring companysstock are issued directly to the target companys shareholders, or the new shares are sent to a broker who manages them for target company shareholders GROWTH STRATEGIES Concept of Growth Growth in firms can be looked at by two broad views: organic growth, or inorganic growth. Organic growth is achieved through mainly internal expansion while inorganic growth is achieved through external expansion, i.e. through consolidations, acquisitions and mergers. Growth is something for which most companies, large or small, strive. Small firms want to get big, big firms want to get bigger. As observed by Philip B. Crosby, author of The Eternally Successful Organization, if for no other reason than to accommodate the increased expenses that develop over the years. Inflation also raises the cost of everything, and retaliatory price increases are not always possible. Salaries rise as employees gain seniority. The costs of benefits rise because of their very structure, and it is difficult to take any back, particularly if the enterprise is profitable. Therefore cost eliminations and profit improvement must be conducted on a continuing basis, and the revenues of the organization must continue to increase in order to broaden the base. Most firms, of course, desire growth in order to prosper, not just to survive. Organizational growth, however, means different things to different organizations. Indeed, there are many parameters a company can select to measure its growth. The most meaningful yardstick is one that shows progress with respect to an organizations stated goals. The ultimate goal of most companies is profit, so net profit, revenue, and other financial data are often utilized as bottom-line indications of growth. Other business owners, meanwhile, may use sales figures, number of employees, physical expansion, or other criteria to judge organizational growth. Companies which are run by a product minded entrepreneur are more concerned with the growth and profitability of a firm as an organization for the production of goods and services. While companies run by empire builders type of entrepreneurs are continuously looking at expanding the scope of the enterprise. Empire builders are not satisfied are not sa tisfied with product improvement or maintaining competitive edge In terms of access to finance there are broadly five growth stages in a companys lifespan: inception, organic growth, purchased, IPO and Beyond IPO as shown in the figure below. Each stage has its own characteristics, risks and potential financial sources. Organic Growth without MA In Organic growth, growth depends on the ability to avail the available opportunities and existing resources in a more efficient way. The extent of growth of a firm is actually determined by the ability of managers, product or market factors. There is no limit to the absolute size of the firm keeping in mind the assumption that there is no fixity of capital, labor and management and the firm is capable of acquiring these resources at a price. In addition it is also assumed that there are opportunities in the economy for investments. The economies available within the firm (such as excess productive resources or managerial capabilities) disappear after the expansion is completed as they get utilized in a new activity. This means that it is only an â€Å"entry advantage†. However the firm may have these advantages in its new operations, often set up as new subsidiaries or divisions, which may grow in response to the economies in the same manner as the rest of the firm. New operations may later be spun off from the original firm without any loss of efficiency. Further, both the original and the spun off firms will have some unused productive resources which can then be used to develop new activities Inorganic growth through MA The inorganic growth strategy is dependent on MA. The idea of acquisition is that it accelerates the business model, giving it greater impetus than organic growth. Because acquisition gives the business what it cannot get quickly or incrementally. It may be a joint venture an agreement that gives both parties something they want that the other has. Acquisition targets can include both complementary and competitive businesses complementary when the target can give something an acquirer needs or competitive when the target can stop someone else having what the acquirer wants. The risks in growth through acquisitions are significant, but they can be contained through planning and due diligence. The primary risk is integration: post the acquisition is completed the new arrangements have to work and people who were not party to the negotiation have to work together. The same goes for systems and expectations as different business would have grown in different ways. A consistent culture is laudable but a wholly consistent culture will be impossible. Add regional diversity to this and the risk would become even higher. Motivations for MA Mergers and acquisitions can be motivated by either the share-holder wealth maximizing approach or the widening share ownership. The primary objectives of MA activities are diversifications, market expansion, improving competitive position and depression immunity. Given these basic objectives a different rationale can be assigned at both individual and collective levels. From the standpoint of shareholders Investment made by shareholders in the companies subject to merger should enhance in value. The sale of shares from one companys shareholders to another and holding investment in shares should give rise to greater values i.e. the opportunity gains in alternative investments. Shareholders may gain from merger in different ways viz. from the gains and achievements of the company i.e. through Realization of monopoly profits; Economies of scales; Diversification of product line; Acquisition of human assets and other resources not available otherwise; Better investment opportunity in combinations. One or more features would generally be available in each merger where shareholders may have attraction and favor merger. From the standpoint of managers Managers are concerned with improving operations of the company, managing the affairs of the company effectively for all round gains and growth of the company which will provide them better deals in raising their status, perks and fringe benefits. Mergers where all these things are the guaranteed outcome get support from the managers. At the same time, where managers have fear of displacement at the hands of new management in amalgamated company and also resultant depreciation from the merger then support from them becomes difficult. Promoters gains Mergers do offer to company promoters the advantage of increasing the size of their company and the financial structure and strength. They can convert a closely held and private limited company into a public company without contributing much wealth and without losing control. Benefits to general public Impact of mergers on general public could be viewed as aspect of benefits and costs to: Consumer of the product or services; Workers of the companies under combination; General public affected in general having not been user or consumer or the worker in the companies under merger plan. VALUATION OF TARGET COMPANIES Valuation of target companies is an essential step in the MA process. Due Diligence Due Diligence of a company; answers the question of whether a deal is being done at the right time at the right price for the right reasons. It involves an investigation into the affairs of an entity and results in the production of a report detailing relevant data and points. The investigation is performed prior to the businesss acquisition, flotation, restructuring or other transactions Due Diligence is performed by many advisors on the team. For example there may be a separate legal due diligence, financial due diligence, tax due diligence, environmental due diligence, commercial due diligence, and information technology due diligence. Financial due diligence is a vital part of the MA process. Often a problem in the financial due diligence raises point to be dealt by other areas as well, for example a financial due diligence may uncover an unusual lease obligation which then feeds into the legal due diligence. What a due diligence involves Each MA transaction is unique in its own sense hence the scope and extent of a due diligence process needs to be tailored to fit the needs of the buyer. However broadly it should cover the following aspects: The history and commercial activities of the business The organizational structure and employees Employee benefits and labor matters Its accounting policies The information systems A detailed review of financial statements A review of the financial projections Anything else the team may uncover that is relevant for the transaction Methods of Valuation The valuation of a target company normally depends on a lot of factors, it is not sufficient to evaluate the financial aspect alone. This is possible through a valuation of the 5 Ps which are: Personnel  ­- senior management of the target company play an important role in an acquisition. The acquiring firm considers the motivation, energy and intelligence levels of the existing personnel before taking them on. Product Proprietary products of a Target company increase the value of the company. Plant The plant capacity and condition of equipments also affect the valuation of a company. Potential The potential of a firms growth as compared to the industry is also a factor in its valuation Profit The declared profits of the firm is the basis of determining price. It is normally considered easier to evaluate public limited since most of the above data is publicly available in their annually published reports. In the case of a Private company it is a little more challenging to get the same information and the Acquiring company has to depend on a proper due diligence process to complete its valuation. Financial Valuation Financial valuation should answer the simple, but vital, question â€Å"What is something worth?† The analysis of target is hence based on either current projections or of the future. The process of valuations differ substantially for a listed and unlisted companies Many types of valuation metrics are used, involving several sets of metrics. On of the most common is the standard P/E ration (Price to earnings ratio) however some of the other metrics include assets value, capitalized earnings, market value, investment value, book value, costs basis valuation, enterprise value and some combined methods as well. P/E Ratio and Market Price For an unlisted company the P/E ratio of a comparable listed company is referred to and discounted based on the voting rights in the company. For listed companies the modes of valuation can be based on either earnings or assets. The market price of shares reflects the earnings per share (EPS). P/E ratio Calculated as: The P/E ratio is the current price of shares divided by the EPS. The higher the P/E ratio the higher are the future earnings expectation The P/E multiple is calculated as the multiple of net profit used to compute the companys purchase price. For example, an investor attempting to recover his initial investment in 10 years would have to earn an after-tax return of 10% on investment, plus adjustment for discounted cash flow and inflation. Discounted Cash Flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value. DCF is calculated as: Assets Value Tangible assets, such as land and buildings, and intangible assets are assessed as per existing business practices. Goodwill is based on the companys excess earning power for certain number of years. The asset basis valuation is either on the fair value or the open market value. The dividend approach and the super profit approach can also be used for asset valuation. In the dividend, the present share prices are taken as the values of future dividends. While the super profit approach expects to get more value for a firm in addition to the value of the net assets. Capitalized Earnings This method is based on the rate of return on the capital employed Market Value This is on the basis of quoted share values at the stock exchange. Investment Value This is the cost of establishing an enterprise such as the target company and the interest on the same. Book Value This is the secondary factor in valuations and takes into account the total worth of the assets after depreciation. If the P/E multiplier is less than the book value then the book value has to be adjusted to reflect the true value. It takes into account the present net value of the real estate, machinery and equipment. Sometimes the book value may be understated in times of inflation and overstated during depression. Cost Basis Valuation This is cost minus depreciation. Intangible assets are not taken into account. Reproduction Cost This is the current cost of replacement of properties with similar design and material. Substitution Cost Substitution cost is the cost of construction of the same utility and capacity. Enterprise Value The valuation of a company is based on the Enterprise Value (EV) and its ratio to the companys sales and operating profit (PBIDT Profit before interest, depreciation and tax). Enterprise Value is calculated as: A = Market Capitalization of Stock + Total Debt on Companys books B = Investments + Cash EV = (B A) Accounting Methods The method accounting also has a significant impact on the valuation and price the seller will receive. The acquiring firm can use two principal accounting methods for valuations, they can either use the pooling of interests method or the purchase method. The main difference between them is the value that the combined firms balance sheet places on the assets of the acquired firm, as well as the depreciation allowances and charges against income following the merger. Pooling of Interests Method The pooling of interests method assumes that the transaction is simply an exchange of equity securities. Therefore, the capital stock account of the target firm is eliminated, and the acquirer issues new stock to replace it. The two firms assets and liabilities are combined at their historical book values as of the acquisition date. The end result of a pooling of interests transaction is that the total assets of the combined firm are equal to the sum of the assets of the individual firms. No goodwill is generated, and there are no charges against earnings. A tax-free acquisition would normally be reported as a pooling of interests. Purchase Method   In this method, assets and liabilities are shown on the merged firms books at their market (not book) values as of the acquisition date. This method is based on the idea that the resulting values should reflect the market values established during the bargaining process. The total liabilities of the combined firm equal the sum of the two firms individual liabilities. The equity of the acquiring firm is increased by the amount of the purchase price. Mark Up Pricing/ Premium Markup pricing or premium is the percentage difference between the trading price of the target companies stock before the announcement of acquisition and the price per share paid by the acquiring firm. Bidding firms pay large premiums to acquire control of exchange-listed target firms. Normally premiums include pre-bid run up in the target firms stock price as part of the control premium paid by the winning bidders. The valuations by the bidder and the target depend on the information each party has at the time of the negotiation. Mark Up or premium is partly decided on the basis of the relationship pattern of the acquiring firm. The pattern in some cases is that if interlocking directorship among firms. Most firms have stable and long standing relationships with professionals such as attorneys, investment bankers and accountants. These are likely to have similar effects as to interlock directorships. Managers take advice from both their interlock partners and professional firms when deciding how much to pay. Financing an MA Organizations use various methods for financing an MA deal. Often combinations of the below mentioned methods: Cash Cash payments. These are normally preferred since the organization does not have to dilute equity and there will be no change in the number of shares outstanding. Also cash transactions save time and cash can be re-invested at the face value. Financing Financing capital may be borrowed from banks or raised from issue of bonds. Acquisitions that are financed through debt are called as leveraged buyouts if they take the target private, and the debt will often be moved down into the balance sheet of the acquired company. Hybrids An acquisition can involve a combination of cash and debt or of cash and stock of the purchasing entity. POST ACQUISITION INTEGRATION After the acquisition is completed, the acquired company needs to be integrated with the acquiring company. The process of integration actually needs to be planned during the acquisition itself to ensure that the company integrates smoothly. The success of integration also depends on the managers who are responsible for the implementation. Planning The acquiring company needs to plan the post acquisition integration period. IN the initial period the target company is more receptive to drastic changes to make the company viable. Some of the basic approaches are as follows Adapting a program This should be completely aligned with the companies goals and objectives of the company and should also take into account the limitations of the company. Effective organization and leadership structure The integration process involves creating a group which focuses on creating value through specific activities and actions. A true partnership would mean involving the senior leadership of the acquired company as well in this strategic group. Minimize post acquisition exodus of critical resources It is critical to have a preventing plan in place to minimize the damage that maybe caused to the new enterprise. Any loss of critical things like market standing, key employees, brand has to be avoided. Employee issues The empl Concepts of Mergers and Acquisitions Concepts of Mergers and Acquisitions MA CONCEPTS Introduction â€Å"The phrase Mergers and Acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying and selling and combining of different companies that can aid, finance or help a growing company in a given industry grow rapidly without having to create another business entity† The above sums up in a nutshell the concept of mergers and acquisitions. There are multiple reasons for companies to get into MA activity whether to expand into a new market or geography, to gain market share in a current market, to overcome competition or for regulatory reasons as some governments make a tie up mandatory to operate in their local economy. However it is essential to mention that in the current economic scenario MA has become an essential tool for companies to expand and grow, as successful MA strategy can be a differentiating factor for successful organization. The words and Mergers and Acquisitions are quite often used interchangeably in the current corporate world and hence can be seen in the project as well. Here is an attempt to list out some salient features which differentiate between the terms Mergers and Acquisitions. Merger A Merger can be descried as a combination of two companies into one larger company; such activities are normally voluntary in nature and involve a stock swap or cash payment to the target organization. Stock swaps allow the shareholders of both companies to share the risk involved in the deal. A merger normally results in a new company with a new brand and a new company name being created. Oxford Dictionary of Business defines mergers as â€Å"A combination of two or more businesses on an equal footing that results in the creation of a new reporting entity formed from the combining businesses. The shareholders of the combining entities mutually share the risks and rewards of the new entity and no one party to the merger obtains control over another. Acquisition Acquisitions or takeover are different from Mergers. In the case of an acquisition a company unilaterally relinquishes its independence and adopts to the acquiring firms plans. As a legal point of view the target company ceases to exist as the buyer â€Å"swallows† the business. Acquisitions have the following characteristics They are a part of a well-considered company development plan It is a unilateral process Top management structure will have fewer problems Contractual regulations are simpler Time taken for an acquisition is normally shorter than a merger. However it is essential to mention here that whether a purchase is to be considered as merger or an acquisition actually depends on the whether the purchase is friendly or hostile or in the manner it is announced. The real difference hence lies in the way it is communicated and the way it is received by the shareholders, directors and employees of the target company. History of MA Mergers and Acquisition movements were normally defined and associated with the behavior of US organizations. Various authors have tried to classify the merger movements into wave. The most prominent was Weston who in 1953 described three major periods of merger movements while studying the US business behavior. Merger waves are a very generic way to describe the predominant strategy that was being adopted by organizations in that era. This has been interpreted by the different authors in different ways depending on how they have perceived by them. However it would be wrong to consider that all organizations followed the same strategy as described in the various. The start or the first wave of the Merger movement is said to be have been post the Sherman Act in 1890. Prior to 1890 there was a predominance of the polypoly market structure, this was reduced post 1890 and partial monopolies started increasing. The economic history has been divided into Merger Waves based on the merger activities in the business world as: Period Name Facet 1889 1904 First Wave Horizontal mergers 1916 1929 Second Wave Vertical mergers 1965 1989 Third Wave Diversified conglomerate mergers 1992 1998 Fourth Wave Hostile takeovers; Corporate Raiding 2000 Fifth Wave Cross-border mergers The Great Merger Movement was primarily a US business phenomenon from 1895 to 1905. It is said that during this time 1800 of small firms disappeared into consolidations with similar firms to form large, powerful institutions that dominated their markets. The relaxation of corporate laws in the United States helped the mergers, transportation and communication networks were developed which helped achieved economies of size. The second wave (1916 to 1929) saw even greater activity in mergers. The motive behind these mergers was vertical integrations. Organizations tried to achieve technical gains and to avoid their dependence on other firms for raw materials. The third wave saw the large conglomerates looking at diversification in the 60s. the process actually reached its zenith during the merge wave and was carried to its logical extreme by the conglomerate firms that rose to prominence during that time. The fourth wave in 90s saw increase in hostile takeovers and corporate raiding by the large firms. This was a wave during which vulnerable companies were grabbed up by the larger firms. The fifth wave has been categorized as starting from the year 2000 onwards and has seen a trend of increase in Cross border acquisitions. The rise of globalization has seen increased the market for cross border MA. This rapid increase has taken many MA firms by surprise as most of them never used to consider this due to the complexity involved in cross border MA. The success of these acquisitions was also limited and we saw a vast majority of them failing. Even then in 1997 alone there were over 2300 cross border acquisition worth a total of approximately $298 Million. Source: Boston Consulting Group Research Report â€Å" The Brave New World of MA-How to Create value from MA†, July 2007 Types of Mergers and Acquisitions There are various types of mergers and acquisitions depending on the type of the business structure. The classification can be based on the type of companies merging or by the way the MA deal is being financed. Here is some type of mergers on the basis of the relationship between the two companies that are merging: Horizontal Merger- This type or a merger is between two companies that share the same product line and markets and are in direct competition with each other Vertical Merger This is between a customer and company of between a supplier and a company Market Extension Merger This between two companies that sell the same products in different geographies or markets Product Extension Merger This is between two companies that are selling different but related products in the same market. Circular Merger A circular merger is very similar to a product extension merger however in this case the products being sold are completely unrelated. The merger brings in benefits by utilizing the same channels for marketing these unrelated products, allowing shared dealerships. An example of this kind of a merger is of McLeod Russel (A Team company) with Eveready Industries ( A batteries company) in 1997. McLeod Russel however was de-merged from Eveready in 2005. Conglomeration This type of a merger is between two companies that have no common business areas. Mergers can also be classified depending on how the merger is being financed as described below Purchase Mergers This kind of a merger occurs when a company purchases another. The purchase is made through cash or through the issue of a debt instrument. Consolidation Mergers In this type of a merger a new company is formed and both the companies are bought and combined under the new entity. Type of acquisitions can be described as below Amalgamation In this type of an acquisition a new corporation is created by uniting the companies voluntarily. Acquisition/Takeover In this form one company acquires another companies total or controlling interest. The acquired company either operates as a subsidiary or can be liquidated completely. Sale of Assets A company can sell off all its assets to another and cease to exist. Holding Company Acquisition This involves the acquisition of either the total or majority of a firms stock by a company. The purpose of this form is mainly to gain management control of other companies Reverse Merger In this form of an acquisition a private company with strong prospects buys a publicly listed shell company, usually one with no business or limited assets. This helps the private company to get publicly listed in a short span of time. All mergers though have one common goal and that is to create a synergy between two companies which makes the value of the combined companies to be greater than the sum of the two companies MA Process MA process can be laid down in 3 basic phases First Phase Start with an Offer The acquiring firm once decides that they want to do a merger of acquisition, they start with an offer. The acquiring company starts working with financial advisors and investment bankers to initiate contact with the target company. The acquiring must have a strategy for a merger programme, formulated by company management and approved by the director and majority stockholders. The acquiring company also at this point does a soft due diligence with the help of publicly available data and financial advisors. The purpose of this is to arrive at an overall price that the acquiring company is willing to pay for its target in cash, shares or both. Second Phase Targets Response Once the offer has been made the target company can do one of several things mentioned below Accept the offer If the target companies top management and shareholders are happy with the offer they can simply accept the offer and go ahead with the deal. Attempt to Negotiate   If the target company management and shareholders are not satisfied with the offer they might try and work out more agreeable terms with the acquiring company. Since a lot is stake for the management of the target i.e. their jobs in particular, they might want to work out better deal to keep their jobs or leave with a big compensations package. Target companies which are highly sought after with multiple bidders would obviously have a better chance of negotiating a sweeter deal. Even manager who are crucial to the operation of an organization have a better chance of success into negotiating a good deal for them. Execute a Poison Pill or similar Hostile Takeover Defense A poison pill can be initiated by a target company if it observers a potential hostile suitor acquiring a predetermined percentage of Target company stock. To execute its defense, the target company grants all shareholders except the acquiring company options to buy additional stock at a dramatic discount. This dilutes the acquiring companys share and thwarts the potential hostile takeover attempt.  · Find a White Knight In this alternative a target company seeks out a friendlier company as a potential acquiring company. The friendlier company would offer an equal or higher price with better terms as compared to a hostile takeover bid. Third Phase or Closing the Deal Once the target company accepts the offer and all the regulatory requirements are met then the deal would be executed. The acquiring company will them pay for the target companies shares with cash, stock or both. A cash-for-stock transaction is fairly straightforward: target company shareholders receive a cash payment for each share purchased. When a company is purchased with stock, new shares from the acquiring companysstock are issued directly to the target companys shareholders, or the new shares are sent to a broker who manages them for target company shareholders GROWTH STRATEGIES Concept of Growth Growth in firms can be looked at by two broad views: organic growth, or inorganic growth. Organic growth is achieved through mainly internal expansion while inorganic growth is achieved through external expansion, i.e. through consolidations, acquisitions and mergers. Growth is something for which most companies, large or small, strive. Small firms want to get big, big firms want to get bigger. As observed by Philip B. Crosby, author of The Eternally Successful Organization, if for no other reason than to accommodate the increased expenses that develop over the years. Inflation also raises the cost of everything, and retaliatory price increases are not always possible. Salaries rise as employees gain seniority. The costs of benefits rise because of their very structure, and it is difficult to take any back, particularly if the enterprise is profitable. Therefore cost eliminations and profit improvement must be conducted on a continuing basis, and the revenues of the organization must continue to increase in order to broaden the base. Most firms, of course, desire growth in order to prosper, not just to survive. Organizational growth, however, means different things to different organizations. Indeed, there are many parameters a company can select to measure its growth. The most meaningful yardstick is one that shows progress with respect to an organizations stated goals. The ultimate goal of most companies is profit, so net profit, revenue, and other financial data are often utilized as bottom-line indications of growth. Other business owners, meanwhile, may use sales figures, number of employees, physical expansion, or other criteria to judge organizational growth. Companies which are run by a product minded entrepreneur are more concerned with the growth and profitability of a firm as an organization for the production of goods and services. While companies run by empire builders type of entrepreneurs are continuously looking at expanding the scope of the enterprise. Empire builders are not satisfied are not sa tisfied with product improvement or maintaining competitive edge In terms of access to finance there are broadly five growth stages in a companys lifespan: inception, organic growth, purchased, IPO and Beyond IPO as shown in the figure below. Each stage has its own characteristics, risks and potential financial sources. Organic Growth without MA In Organic growth, growth depends on the ability to avail the available opportunities and existing resources in a more efficient way. The extent of growth of a firm is actually determined by the ability of managers, product or market factors. There is no limit to the absolute size of the firm keeping in mind the assumption that there is no fixity of capital, labor and management and the firm is capable of acquiring these resources at a price. In addition it is also assumed that there are opportunities in the economy for investments. The economies available within the firm (such as excess productive resources or managerial capabilities) disappear after the expansion is completed as they get utilized in a new activity. This means that it is only an â€Å"entry advantage†. However the firm may have these advantages in its new operations, often set up as new subsidiaries or divisions, which may grow in response to the economies in the same manner as the rest of the firm. New operations may later be spun off from the original firm without any loss of efficiency. Further, both the original and the spun off firms will have some unused productive resources which can then be used to develop new activities Inorganic growth through MA The inorganic growth strategy is dependent on MA. The idea of acquisition is that it accelerates the business model, giving it greater impetus than organic growth. Because acquisition gives the business what it cannot get quickly or incrementally. It may be a joint venture an agreement that gives both parties something they want that the other has. Acquisition targets can include both complementary and competitive businesses complementary when the target can give something an acquirer needs or competitive when the target can stop someone else having what the acquirer wants. The risks in growth through acquisitions are significant, but they can be contained through planning and due diligence. The primary risk is integration: post the acquisition is completed the new arrangements have to work and people who were not party to the negotiation have to work together. The same goes for systems and expectations as different business would have grown in different ways. A consistent culture is laudable but a wholly consistent culture will be impossible. Add regional diversity to this and the risk would become even higher. Motivations for MA Mergers and acquisitions can be motivated by either the share-holder wealth maximizing approach or the widening share ownership. The primary objectives of MA activities are diversifications, market expansion, improving competitive position and depression immunity. Given these basic objectives a different rationale can be assigned at both individual and collective levels. From the standpoint of shareholders Investment made by shareholders in the companies subject to merger should enhance in value. The sale of shares from one companys shareholders to another and holding investment in shares should give rise to greater values i.e. the opportunity gains in alternative investments. Shareholders may gain from merger in different ways viz. from the gains and achievements of the company i.e. through Realization of monopoly profits; Economies of scales; Diversification of product line; Acquisition of human assets and other resources not available otherwise; Better investment opportunity in combinations. One or more features would generally be available in each merger where shareholders may have attraction and favor merger. From the standpoint of managers Managers are concerned with improving operations of the company, managing the affairs of the company effectively for all round gains and growth of the company which will provide them better deals in raising their status, perks and fringe benefits. Mergers where all these things are the guaranteed outcome get support from the managers. At the same time, where managers have fear of displacement at the hands of new management in amalgamated company and also resultant depreciation from the merger then support from them becomes difficult. Promoters gains Mergers do offer to company promoters the advantage of increasing the size of their company and the financial structure and strength. They can convert a closely held and private limited company into a public company without contributing much wealth and without losing control. Benefits to general public Impact of mergers on general public could be viewed as aspect of benefits and costs to: Consumer of the product or services; Workers of the companies under combination; General public affected in general having not been user or consumer or the worker in the companies under merger plan. VALUATION OF TARGET COMPANIES Valuation of target companies is an essential step in the MA process. Due Diligence Due Diligence of a company; answers the question of whether a deal is being done at the right time at the right price for the right reasons. It involves an investigation into the affairs of an entity and results in the production of a report detailing relevant data and points. The investigation is performed prior to the businesss acquisition, flotation, restructuring or other transactions Due Diligence is performed by many advisors on the team. For example there may be a separate legal due diligence, financial due diligence, tax due diligence, environmental due diligence, commercial due diligence, and information technology due diligence. Financial due diligence is a vital part of the MA process. Often a problem in the financial due diligence raises point to be dealt by other areas as well, for example a financial due diligence may uncover an unusual lease obligation which then feeds into the legal due diligence. What a due diligence involves Each MA transaction is unique in its own sense hence the scope and extent of a due diligence process needs to be tailored to fit the needs of the buyer. However broadly it should cover the following aspects: The history and commercial activities of the business The organizational structure and employees Employee benefits and labor matters Its accounting policies The information systems A detailed review of financial statements A review of the financial projections Anything else the team may uncover that is relevant for the transaction Methods of Valuation The valuation of a target company normally depends on a lot of factors, it is not sufficient to evaluate the financial aspect alone. This is possible through a valuation of the 5 Ps which are: Personnel  ­- senior management of the target company play an important role in an acquisition. The acquiring firm considers the motivation, energy and intelligence levels of the existing personnel before taking them on. Product Proprietary products of a Target company increase the value of the company. Plant The plant capacity and condition of equipments also affect the valuation of a company. Potential The potential of a firms growth as compared to the industry is also a factor in its valuation Profit The declared profits of the firm is the basis of determining price. It is normally considered easier to evaluate public limited since most of the above data is publicly available in their annually published reports. In the case of a Private company it is a little more challenging to get the same information and the Acquiring company has to depend on a proper due diligence process to complete its valuation. Financial Valuation Financial valuation should answer the simple, but vital, question â€Å"What is something worth?† The analysis of target is hence based on either current projections or of the future. The process of valuations differ substantially for a listed and unlisted companies Many types of valuation metrics are used, involving several sets of metrics. On of the most common is the standard P/E ration (Price to earnings ratio) however some of the other metrics include assets value, capitalized earnings, market value, investment value, book value, costs basis valuation, enterprise value and some combined methods as well. P/E Ratio and Market Price For an unlisted company the P/E ratio of a comparable listed company is referred to and discounted based on the voting rights in the company. For listed companies the modes of valuation can be based on either earnings or assets. The market price of shares reflects the earnings per share (EPS). P/E ratio Calculated as: The P/E ratio is the current price of shares divided by the EPS. The higher the P/E ratio the higher are the future earnings expectation The P/E multiple is calculated as the multiple of net profit used to compute the companys purchase price. For example, an investor attempting to recover his initial investment in 10 years would have to earn an after-tax return of 10% on investment, plus adjustment for discounted cash flow and inflation. Discounted Cash Flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value. DCF is calculated as: Assets Value Tangible assets, such as land and buildings, and intangible assets are assessed as per existing business practices. Goodwill is based on the companys excess earning power for certain number of years. The asset basis valuation is either on the fair value or the open market value. The dividend approach and the super profit approach can also be used for asset valuation. In the dividend, the present share prices are taken as the values of future dividends. While the super profit approach expects to get more value for a firm in addition to the value of the net assets. Capitalized Earnings This method is based on the rate of return on the capital employed Market Value This is on the basis of quoted share values at the stock exchange. Investment Value This is the cost of establishing an enterprise such as the target company and the interest on the same. Book Value This is the secondary factor in valuations and takes into account the total worth of the assets after depreciation. If the P/E multiplier is less than the book value then the book value has to be adjusted to reflect the true value. It takes into account the present net value of the real estate, machinery and equipment. Sometimes the book value may be understated in times of inflation and overstated during depression. Cost Basis Valuation This is cost minus depreciation. Intangible assets are not taken into account. Reproduction Cost This is the current cost of replacement of properties with similar design and material. Substitution Cost Substitution cost is the cost of construction of the same utility and capacity. Enterprise Value The valuation of a company is based on the Enterprise Value (EV) and its ratio to the companys sales and operating profit (PBIDT Profit before interest, depreciation and tax). Enterprise Value is calculated as: A = Market Capitalization of Stock + Total Debt on Companys books B = Investments + Cash EV = (B A) Accounting Methods The method accounting also has a significant impact on the valuation and price the seller will receive. The acquiring firm can use two principal accounting methods for valuations, they can either use the pooling of interests method or the purchase method. The main difference between them is the value that the combined firms balance sheet places on the assets of the acquired firm, as well as the depreciation allowances and charges against income following the merger. Pooling of Interests Method The pooling of interests method assumes that the transaction is simply an exchange of equity securities. Therefore, the capital stock account of the target firm is eliminated, and the acquirer issues new stock to replace it. The two firms assets and liabilities are combined at their historical book values as of the acquisition date. The end result of a pooling of interests transaction is that the total assets of the combined firm are equal to the sum of the assets of the individual firms. No goodwill is generated, and there are no charges against earnings. A tax-free acquisition would normally be reported as a pooling of interests. Purchase Method   In this method, assets and liabilities are shown on the merged firms books at their market (not book) values as of the acquisition date. This method is based on the idea that the resulting values should reflect the market values established during the bargaining process. The total liabilities of the combined firm equal the sum of the two firms individual liabilities. The equity of the acquiring firm is increased by the amount of the purchase price. Mark Up Pricing/ Premium Markup pricing or premium is the percentage difference between the trading price of the target companies stock before the announcement of acquisition and the price per share paid by the acquiring firm. Bidding firms pay large premiums to acquire control of exchange-listed target firms. Normally premiums include pre-bid run up in the target firms stock price as part of the control premium paid by the winning bidders. The valuations by the bidder and the target depend on the information each party has at the time of the negotiation. Mark Up or premium is partly decided on the basis of the relationship pattern of the acquiring firm. The pattern in some cases is that if interlocking directorship among firms. Most firms have stable and long standing relationships with professionals such as attorneys, investment bankers and accountants. These are likely to have similar effects as to interlock directorships. Managers take advice from both their interlock partners and professional firms when deciding how much to pay. Financing an MA Organizations use various methods for financing an MA deal. Often combinations of the below mentioned methods: Cash Cash payments. These are normally preferred since the organization does not have to dilute equity and there will be no change in the number of shares outstanding. Also cash transactions save time and cash can be re-invested at the face value. Financing Financing capital may be borrowed from banks or raised from issue of bonds. Acquisitions that are financed through debt are called as leveraged buyouts if they take the target private, and the debt will often be moved down into the balance sheet of the acquired company. Hybrids An acquisition can involve a combination of cash and debt or of cash and stock of the purchasing entity. POST ACQUISITION INTEGRATION After the acquisition is completed, the acquired company needs to be integrated with the acquiring company. The process of integration actually needs to be planned during the acquisition itself to ensure that the company integrates smoothly. The success of integration also depends on the managers who are responsible for the implementation. Planning The acquiring company needs to plan the post acquisition integration period. IN the initial period the target company is more receptive to drastic changes to make the company viable. Some of the basic approaches are as follows Adapting a program This should be completely aligned with the companies goals and objectives of the company and should also take into account the limitations of the company. Effective organization and leadership structure The integration process involves creating a group which focuses on creating value through specific activities and actions. A true partnership would mean involving the senior leadership of the acquired company as well in this strategic group. Minimize post acquisition exodus of critical resources It is critical to have a preventing plan in place to minimize the damage that maybe caused to the new enterprise. Any loss of critical things like market standing, key employees, brand has to be avoided. Employee issues The empl