Tata & Jaguar Land Rover - Culture and Strategy
For any colleagues and students researching the Tata Group takeover of Jaguar Land Rover in 2008 - this is a must-watch video interview. In fact, it has broader relevance to anyone wanting a concrete example of how to respect the culture of a takeover target as part of a long-term plan to increase shareholder value.
read more...»Apple’s new CEO and a new iPad - A Change in Leadership
For those of you who watched the recent Apple special event (7 March 2012), you were witnessing an event which involved too kinds of leadership. First, Apple was aiming to secure its leadership of the global tablet computer market with the launch of the “new iPad”. Secondly, the event was a showcase for a new kind of leadership at Apple. It provided quite a few clues to the leadership style of Tim Cook, leading the presentation for the first time since the death of Steve Jobs.
read more...»Takeover and merger integration: lessons from the experts (GE Capital)
GE Capital (of former CEO Jack Welch fame) is a global conglomerate that has grown through hundreds of acquisitions. I’ve just read through a detailed but fascinating article in the Harvard Business Review which outlines GE’s approach to successful takeover integration. Some great insights here for AQA BUSS4 students who need an overview of the factors that affect the success or failure of a takeover. I have summarised them below:
read more...»Can we learn lessons in business organisation from the mittelstand model
A business studies lesson gem from an unusual source here - the politics team at the BBC! Germans use the word “mittelstand” for the millions of middle-sized companies that form the backbone of their booming economy, and some in Britain reckon the model could teach UK industries a few lessons…
read more...»Takeover troubles - Has the Co=operative got Indigestion with the Somerfield Integration?
A fascinating and perfectly-timed article here in the Independent which outlines evidence that the Co-operative Group’s takeover of Somerfield in 2009 might be providing a little less successful than it originally planned…
read more...»Takeovers and Mergers - tutor2u Mini Briefs
Our takeover and merger mini-brief cards are designed to help students gain a deeper understanding of key M&A transactions. We used this during the recent CPD days on BUSS4 and obtained some great ideas from teachers about how they can be used in the classroom and as a prompt for further student research. The 30 mini-brief cards work particularly well with Ryan Cook’s superb Map of Merger Motives which provides a terrific link between examples of takeovers and mergers and key theories such as Porter’s Five Forces.
We have outlined further below some suggestions as to how the mini-briefs can be used as a classroom resource…
The Mini Briefs and Map of Merger Motives are just two of several teaching resources included in our AQA BUSS4 Section A toolkit which is published on 8 March 2012.
read more...»Takeovers - the Indian Experience
A fantastic piece here in the Economist on the rapid globalisation of Indian firms such as Tata Group - a key case study for A2 students looking at takeovers and mergers…
read more...»Lesson video : Franchising for beginners
A wonderful topical video clip here from the BBC which introduces pupils to the pros and cons of setting up a Franchise. Four minutes long, the video is perfect as a lesson starter for just about every business course that requires students to develop their understanding of business startups.
read more...»Pink bricks for girls? Lego builds a new strategy
Opinions on this move has sharply divided Lego fans! The Guardian invites its readers to vote on the matter to decide if this step is ‘sexist’ or not. My daughter was seriously unimpressed when her Lego Club magazine arrived this month in a different format to her brother’s copy.
Clearly, the company have decided to put extra resources into refining the market segment for girls’ Lego and developing product lines tailored to their tastes. What else can we say about their strategy?
Froth on the beer versus froth on the coffee?
A short BBC video on Whitbread’s huge strategic shift from brewing to retailing coffee and budget hotels.
Whitbread abandoned beer brewing and pub retailing and off licence sales, an industry in which had been a significant presence since 1742. By 2001, the sector had low profits growth and declining sales. Capital has been diverted into areas with higher growth coffee shops and budget hotels. Whitbread’s main brands include Costa Coffee, Premier Inns.
read more...»VW targets growth markets
A quick heads up for business students and teachers who have no reason to follow the Economics blog - Geoff Riley has posted an item about VW’s growth and profits. There is a one-minute video which would be an excellent lesson starter, with hints about the acquisitions and competitive strategy which have led to a 15% growth in sales and doubling of profits, and their focus on emerging markets - plenty here which could lead into an investigation of the company for BUSS4 students.
Strategic change - the story of Whitbread
A neat, short video here about Whitbread - the former UK conglomerate which has refocused its business portfolio on coffee shops and budget hotels in recent years, exiting non-core sectors such as health clubs and brewing. The video would make an ideal starter resource for students wanting to use Whitbread as the base for some business strategy research.
Google’s takeover of Motorola Mobility is given regulatory seal of approval
Google’s biggest-ever takeover has been given approval by competition regulators in both the EU and USA, paving the way for the takeover to be legally completed.
read more...»Takeover insights: Kraft & Cadbury - The Story in Video Clips
The Kraft Foods hostile bid for Cadbury received extensive coverage in the media and many of the issues and well covered in this series of short news clips which help tell the story of the deal. Plenty in here for students, including issues around takeover pricing, strategic rationale, the impact of the deal on shareholders and other stakeholders.
read more...»Takeover insights: Kraft & Cadbury - Behind the Scenes of the Bid Defence
This is a simply wonderful video that was produced by the bid defence team at Cadbury to record the process of Kraft’s hostile bid for Cadbury between August 2009 and January 2010. Although ultimately their efforts were unsuccessful, it shows just how much effort is put into mounting a bid defence. Some great clips and interviews too with the people involved at the end. Highly recommended.
Ten minutes long, but packed with insights into the takeover process. At the time of posting this blog entry, the video has only been seen about 50 times on YouTube - it ought to become a classic for business teachers and students…
read more...»Tata and the rise of Jaguar Land Rover
The Tata takeover of Jaguar Land Rover (“JLR”) in 2008 is one of our five “must research” deals for the AQA BUSS4 research theme in 2012. And this recent article provides students with some compelling evidence about how successful the takeover has been for Tata, the private Indian conglomerate that is now the UK’s largest manufacturer. The Telegraph reports that JLR made record pre-tax profits of £559m in the final three months of 2011 as demand for its premium cars soared in Asia. This follows on from JLR’s record profits of £1.1bn in 2010.
read more...»Video case study - finding success in an engineering niche
This excellent short BBC video looks at a case study of success in UK manufacturing. Granada Material Handling has addressed the issues raised the recession and international competitors. They have focused on a niche market of making lifting equipment for offshore wind farms. Is there a role for government to help UK manufacturers exploit these niche market opportunities? Or is it really about the entrepreneurial spirit of firms like Granada that is the key?
read more...»Takeover insights: Kraft & Cadbury - Justifying the Deal
This 10 minute interview in Autumn 2010 by Bloomberg with Kraft Foods CEO Irene Rosenfeld provides some useful perspectives on the strategic rationale behind the Kraft takeover of Cadbury. Obviously presented with a US business audience in mind, but still hugely useful for A2 business students (particularly AQA BUSS4) none the less…
read more...»BUSS4 - Bullet point 5 the impact on stakeholders
Bullet Point 5 for the research tasks asks students to examine the impact on, and reaction of, stakeholders to takeovers and mergers. Worth having a quick look at today’s news story about Billabong who have been struggling in the consumer downturn. This time last year their shares were trading at 9Australian dollars. However recently they have warned that their revenues are down by as much as 25% for the first half of the year, and that their debt has been increasing - think about the impact on ratios such as ROCE and gearing, and shares had fallen to A$1.79 - not good for shareholders as a stakeholder group.
read more...»Takeovers and Mergers - the Language of M&A
Students researching takeovers and mergers will come across some terminology which might not be familiar to them. Here are some key terms which are worth understanding and using when writing about M&A:
read more...»M&A - It’s time to merge breakfast cereals with some crisps…
A new takeover has been announced this morning and its one that many students researching takeovers and mergers might want to use a topical case study. For many, the products involved will be close to their hearts…
read more...»The Strategic Challenges Facing International Airlines Group - Interview with Willie Walsh
A superb interview here absolutely packed with relevant topics for all A2 business students. Willie Walsh, CEO of IAG (the merged firm that brought together British Airways and Iberia) provides a wide-ranging overview of the strategic issues facing IAG and the airline industry. He talks at length about the strategic rationale for the BA/Iberia merger and the benefits that the merger (as part of a broader process of airline industry consolidation) is starting to generate.
This interview is perfect for students preparing for AQA BUSS4 2012 on Takeovers and Mergers. Take a look at the section starting at about 5 mins 45 seconds, where Walsh talks about the difference between mergers and acquisitions.
Walsh also explains his view on what is meant by leadership in business and explains something about what is involved in being a CEO. He talks about the need to address stakeholder concerns.
BUSS4 gold dust!
read more...»The Leadership Style of Willie Walsh - In Quotes
Willie Walsh is a fascinating and topical example to use with students as they look at the role of leadership in business strategy…
read more...»For sale - three sixth form colleges
Its not every day that someone gets the chance to buy three sixth form colleges. But, there appears to be exactly such an opportunity according to sources at EducationInvestor. So, how much are they worth?
read more...»M&A: 8 ways to make a success of a takeover
Firms that pursue takeovers should look to create value, not headlines. That’s one of the lessons I’ve picked up from some analysis of successful takeover strategies listed in the 2010 KPMG survey of global M&A. Here is a brief summary of their recommendations for approaches which are more likely to result in a takeover or merger..
read more...»Q&A: What are synergies in takeovers and mergers?
Look at any major takeover or merger in the news and you’ll come across the concept of synergies….
read more...»Insights on takeovers and mergers from KPMG’s 2011 global survey
I’ve spent a day reading through a detailed analysis of global takeover and merger evidence (“M&A”) written by accountants KPMG in 2011. The report is both comprehensive and complex. However, it contains some useful insights for students and teachers researching the key strategic issues raised by M&A. I have highlighted and summarised some of the key findings below.
read more...»Innovation in Business - Perspectives from Stephen Elop (CEO of Nokia)
Nokia is an essential research case study for business students and teachers and I highly recommend this excellent, longer video interview with Nokia CEO Stephen Elop. The discussion focuses on the role of innovation in business, but you also get a sense of the character of Elop, a key case study in leadership and business strategy. This is a wide-ranging and accessible discussion that also focuses on the effect of technological disruption in business, with a specific analysis of the effect/influence of disruption on innovation strategy.
read more...»Starter activity - Contingency Planning (Japanese Style)
When it comes to contingency planning, no-one does it better than Japan. And here are two humorous videos that demonstrate the extents to which you can go to prepare for risky events…
read more...»Takeovers - the search for cost synergies
Students researching the topic of takeovers and mergers will come across several unfamiliar terms. One of the most important for them to understand is “synergy” and we’ll write in more detail in subsequent blog entries about what these are. However, here is a useful piece of research which indicates the potential and significance of the most common kind of synergy - “cost synergies”.
read more...»
