However, there are a number of reasons why mergers and acquisitions have been triggered in the recent recession of the economic cycle.Also, one needs to understand how and when the bid price is set. Since both the parties in the deal want to safeguard their interest in the deal whether it is a merger or an acquisition, they would want to reduce costs as well as increase the profitability of the venture. Therefore, a dilemma occurs at reaching a consensus of the bid price. There are various methods of financing as well (Deepak, 1990).This paper provides a brief overview of mergers and acquisitions, outlining the major characteristics of these activities. The implications and reasons for this increase in mergers and acquisitions will then be discussed keeping in mind two important examples. the acquisition of Cadbury by Kraft and the merger of British Airways and Iberia of Spain. Furthermore, this paper also defines the major ways through which these acquisitions or mergers are financed and how the concerning parties have been able to come to a consensus on a bid price. providing a solid conclusion in the end.Mergers and Acquisitions are a very important part of corporate finance. Throughout history, organizations have merged together to form bigger ones so that they are able to leverage out their revenues and decrease costs through various means. Usually, these deals involve huge amounts of money. as they are instrumental in shaping the future of the firm which is being formed as a result. However, there are various implications of these actions which shall be discussed (William, 2007).In the science of mergers and acquisitions, one plus one makes three. This equation may not hold true in mathematical circumstances but it sure does in the science of financial options. One of the major rationales behind such corporate actions is to allow the value creation above and beyond the value that the two separate companies were providing their stakeholders.
The structure of Preussag was renamed to Hapag Touristik Union (HTU) which in 2000 was transformed into TUI Group.The general credibility of the TUI is quite excellent. Strategically today TUI is the largest and leading tourism and shipping organization of the world, operationally active mainly in Central, Northern and Western Europe while it has the networks across Europe as well. The inventory of TUI is decorated with hotels, restaurants, retail stores, container ships, travel agencies and airlines. TUI AG Airline, having 7 common brand TUIfly airlines, is the largest holiday fleet in Europe. The company is strongly adhering to persevere with its position as the world’s No. 1 tourism organization in all aspects along with a customer-oriented vision. TUI as well as its affiliates like Thompson Travels, Portland Direct, Lunn Poly, and Skydeals are accredited as most trusted and professional organizations throughout Europe.The company approximately consists of 285 hotels with 163,000 beds and 12 hotel brands in 28 countries, 3500 travel agencies, 120 aircraft, 10 cruise liners, 79 tour operators in 18 countries, and 37 incoming agencies in 31 countries in different parts of the world. At present, TUI AG has 43.3% shares in Hapag-Lloyd AG. During the fiscal year 2008, TUI had revenue of about €759 million. On 31 December 2008, the company had 70,200 employees.With a turnover of about € 21,866 million in 2007, TUI was the largest integrated tourism group in Europe, lagging far behind its competitors. According to the Annual Report 2008, the Thomas Cook Group is the second-largest company in Europe followed by MyTravel, REWE Group and Kuoni in the UK, Germany, and Switzerland respectively. UK, France and Germany are heavily populated countries of Europe and TUI is the market leader in these countries. Moreover, TUI stands in top three companies in 09 other European countries and is the leader of the emerging tourismmarket in Eastern Europe.
As described by many authors “cash flow is the lifeblood of every business” (Williamson, 1999, p.57). The firms thereby need to take great care while handling the cash flow. For effective management of cash flow, the management should have a predetermined volume and time schedule of cash inflow as well as cash outflow. Therefore it is the responsibility of the finance department to analyze all the cash inflow as well as cash outflow beforehand. Budgeting is one of the most commonly used techniques that assist the company to understand the nature of cash flow and to take preventive actions as and when required.For effective financial management, the company needs to develop, execute and control its budget in the best possible way. In the below-given session an in-depth analysis has been conducted to understand the manner in which the budgeting technique can be effectively used for financial management.As described by an Anglo-Saxon “a budget may be considered to be a set of financial statements resulting from a particular scenario- generally the most likely or hoped for scenario” (Hinka, 2007, p.4). At first, the top-level manager sets the corporate goal that needs to be achieved in the future and this gets communicated to the different departments in the form of target. In each functional department, the respective managers set the budget that presents the level of activity to be conducted and the amount of cash required. Later on, these budgets are submitted to the administrative department for final approval. Often the administrative department asks the respective departments to make the requisite changes. Once the budgets of the entire functional department are approved by the administrative department it goes to the finance department where the master budget is formulated. The finance department also develops a cash budget to determine cash inflow and outflow at different points of time.
According to Maslow’s hierarchy of needs, physiological needs (food, water, sex, sleep) and security needs (housing, comfort, stability, love) are at the core of the human needs pyramid. Money allows you to meet these and higher needs of happiness.Finance is the foundation that allows you to change a lot in life. If there is not enough money, then a person has reduced degrees of freedom and he becomes dependent on money and unhappy. A person with wealth is free and happy to love others, for he has many more degrees of freedom and choice for happiness. Specific examples of what finance allows, as many say:Eating healthy and wholesome foods.Success in individuals of the opposite sex, love partners.Caring for yourself and health.Travel and knowledge of the world.Birth and upbringing of children.Accommodation in a spacious and comfortable house or apartment.Riding a comfortable and reliable car.Getting quality medical services.Improving social status.Finances can solve many life and love problems, so the role of money in human life is important, as we believe, right? And one of the most important things in our lives: money? Correct? Despite market relations and the economy, everyone has their own role in life. Financial resources alone are not in the first place, and such people do not live in poverty, although they love them for internal happiness. Others are constantly short of money, and they are ready for anything to gain it. Why does it happen?The importance of the role of money in people’s lives is determined by 3 factors:Ability to make it.Ability to spend it.Ability to save it.A person who knows how to love, earn, and spend money is its happy master. Financial resources are not of great importance to him. their role in happiness is minimal. The owners of the money are not fixated on them, living a full and multifaceted happy life.Those who do not know how to earn and spend finances are ready to risk their life and health for their sake. Money means a lot to them for happiness. they are fixated on it, experiencing the need and problems in lives and love affairs. Finance is given to them with difficulty. their role is huge.Unfortunately, 2 factors, we believe, are rarely observed at the same time, which is a mistake. Compliance with 2 factors leads to a logical result: an increase in wealth and a decrease in the role of money in life.Money alone doesn’t cost anything. it’s just paper we love. The important thing is that others are ready to believe for your money to do for you and what you are ready to do for people who pay you money.Finance for happiness is made differently. Some earn big money doing their favorite activity, self-fulfilling, and reaching heights. Others earn as hard labor by engaging in hateful activities and eking out a miserable existence that they do not love. Proper earning is in 4 points:Earn financial resources by doing your favorite activity we say we love, realizing yourself for happiness. In no case do not do hateful work for the sake of money. Big money cannot be earned by hateful labor.Manage yourself, cash flows, and those of the others. Large amounts of money are earned by encouraging others to work, bringing rich fruits of activity.Earn more in less time. The money/time ratio should be as high as possible.Earn more with less effort. The money/effort ratio should also be as high as possible.The more finances you make and the less time and effort spent on it, the less role money plays to reach comfort and happiness.A competent waste of finances is living within our mean and spending only on necessary and high-quality services and products we love for happiness. To earn a lot, but to spend more, is not living within our mean. It’s not enough to earn money, where earnings cover all needs – living is already within our mean.When spending financial resources, we want to receive in return services or products that we love made by others. But they are inherently selfish, lazy, and like to consume more than creating. Therefore, money alone does not guarantee receipt of high-quality and healthy products and services. The burden and responsibility of competent spending fall on your shoulders.The correct spending consists of 4 points:Spend less than you earn. Do not allow expenses to exceed revenues. The coefficient "expenses/incomes" you should minimize. The exception is your health or your family and friends.Buy only the necessary products and services. Before buying, think about whether it is necessary. Saved dollar – earned dollar.For the money spent, get the highest quality products and services. The quality/price ratio should be as high as possible. Among the products and services of the same price range, choose the highest quality.For the finances spent, get as many quality products and services you love as possible. The quantity/price ratio should also be as high as possible. Among equally high-quality products and services, choose the cheapest.The less financial resources are spent on income, and the more quality and quantity is acquired with that money, the fewer roles it plays in life to gain happiness.Take a look at your attitude to finances. Do you know how to earn, manage, and spend them? Remember that they play exactly the role in your life that you yourself will determine to stay happy.Your life will be beautiful if you learn to manage yourself, finances, human and other resources. Making finance and spending it is the key to success. Otherwise, you will fulfill other people’s orders, selling your irreplaceable time and energy for a penny, embodying other people’s dreams and goals. Avoid such slavery.
Adult day care centers can usually be associated with an alternative to the institutional long term care, supported living and complete-in -home care (VirginiaNavigator.org, 2013). Adult day care centers also provide safe environment along with personal care, nutrition and hydration during the day (VirginiaNavigator.org, 2013).They also provide relief while the primary caregiver is not available or is busy with certain other tasks. The adult day care centers offer both social and basic health services at their locations (Caring, Inc, 2013).There are various departments operating in Virginia engaged in offering adult care facilities in the state. The prominent departments in Virginia engaged in providing adult day care services and facilities include Accomack Department of Social Services, Albemarle County Department of Social Services, Alexandria Division of Human Services, Alleghany-Covington Department of Social Services, Amelia Department of Social Services, Amherst Department of Social Services, Appomattox Department of Social Services, Arlington County Department of Social Services, Bath County Department of Social Services, Bedford Department of Social Services, Chesapeake Department of Social Services, Virginia Beach Department of Human Services and Campbell County Department of Social Services among others. … These departments also offer programs and services such as caregiver’s support, transportation, counseling, and support groups, nursing care, occupational therapy, physical therapy, speech therapy, personal care (including showers, bath, shaving and grooming), case management and memory impairment care (VirginiaNavigator.org, 2013). The organizational chart for adult day care department in Virginia can be illustrated below: Source: (Chesterfield County, 2010) B. Description of the Problems Being Addressed Lucy Corr Village, an adult day care center, is attempting to integrate varied services for people needing such services. It may face certain problems during its integration process. These problems may be associated with licensing, certification, verification and attaining requisite finance. In order to tackle the issues related with licensing, it is advisable to Lucy Corr Village that it should fulfill the necessary requirements stated by Virginia Department of Social Services (Commonwealth of Virginia, 2013). Lucy Corr Village can contact local Virginia Division of Licensing office to seek pre-licensing training. This training shall incorporate local and state requirements for Lucy Corr Village as well as the standards related with health and safety that must be met by it. Concerning the issue of certification, it is essential that the staff of Lucy Corr Village obtain certification on first aid or Cardiopulmonary Resuscitation (CPR). The Virginia Department of Social Services generally approves first aid and CPR certification concerning adult day care centers from National Safety Council, American Red Cross and American Heart Association (Virginia Department of Social Services, 2013) (cite). At the same time,
Taxpayers will have a burden of paying taxes which goes up as high as $88 billion dollars just because of the war and this amount will elevate if the war carries on The United States is in a tough situation. This country has gone to war without the UNs approval and now has been more casualties than when the war officially ended. The united states have been in war with Iraq for around two years. However, no positive fruits have been gotten from the war thing are even getting worse each day. About 2000 American troops have lost their lives a very big number of civilians have lost their lives too amounting to 100,000 people. The past one month has claimed more than 1000 lives through suicide attacks aloneThe situation at hand is very sensitive and critical. If the United States does not leave Iraq and withdraw the troops, more people will continue losing their lives and American citizens will lose their faith in the Nation.The war in Iraq will exceed the number of casualties that occur daily if the American government will not withdraw its troops from Iraq. The government takes more than $ 87 billion dollars to finance the reconstruction of Iraq, and with kind of money being taken from the economy, it will be very unlikely for the country to recover from its financial crisis. To make the matters worse, the administrative government is demanding a cut in a tax of about $ 400 billion dollars. Taking the whole sum, it adds up to about $500 billion dollars which are being used to finance a worthless war in times of economic breakdown. The initial decision of sending troops to Iraq seemed sensible in the short term contemplation of the administration, and the administration may have perceived that Iraq was hiding weapons of mass destruction. However, in the long run, the effects of taking that step would be disastrous. The administration’s line of thought appeared coherent or sane at that particular time. however, the US will be forced to pay inthe future after the war is long forgotten since the war was conceived in a wrong motive.
Keeping in mind the target audience, Coca Cola is launching Coca Cola Zico in the UK market by using the London 2012 Olympics as the major platform for it since the Olympics is considered to be the most prestigious sporting event to take place once in four years. The Zico campaign can certainly attract a lot of audiences who are sports lovers. For this to happen, Coca Cola can employ both advertising and public relations program to achieve their aim to successfully launch their new product. Let’s first define the two marketing strategies. Advertising is an act of selling a product by conveying a message to the audience about the existence of a product. It can be done using both the print and electronic media to reach the masses. On the other hand, Public Relations (PR) refers to the establishment of strong relations with the company’s public which helps in building a strong brand image. Public relations can include activities like sponsorships, covering sports events, etc. (CIPR, 2012) Carrying out advertising may not sound as simple because it entails a lot of aspects that need to be taken account of. Marketers all over the world come across many hurdles before coming up with an advertising strategy. These environmental challenges include the following: 1. Demographics: income distribution, changing lifestyle, the standard of living and the likes. 2. Economic environment: per capita income, state of the economy, etc. . 3. Cultural environment: for instance, the ad on the right of Vita Coco, the market leader in terms of coconut water in the US, may be unacceptable in the South Asian culture but accepted in the UK culture. (Buss, 2012) 4. Political and social environment: legislation, ethics, laws, society itself, etc. Since the case is such that a new product is being launched into the UK market, the role of advertising shall be to both inform and remind the consumers about Zico. The reason for this is that the public relations program will be taking place during the Olympics and it will be followed up by the advertising campaign. The initial step to outline an advertising campaign for Zico would be to decide upon the advertising budget that Coca Cola will spend after the end of the London Olympics. Since it’s a new product, it will require a large budget. Considering the 500,000 media budget, a 60:40 split should be done with advertising getting more as opposed to public relations. The primary reason is that advertising helps in conveying the message to a larger audience with a lower cost per audience. Considering the budget constraints, it is imperative to make the best use of the finance available. Market share also plays an impact on the advertising budget. Since we don’t have sufficient information as to how many players are already in the market, it’s hard to comment about it. For instance, the US market comprises of Pepsi’s ONE and Vita Coco that is doing very well. In case, they exist in the UK market, the role of advertising will also be persuasive in addition to informing. (Esterl, 2012) The second step in designing the advertising strategy would be to create an advertising message. In order to overcome the issue of message retention and attention, the campaign has to be clutter breaking.
The given project provides recommendations to improve the economic condition of the UAE with the help of vital economic indicators like real GDP, inflation, the balance of current account, trade account, population, unemployment, etc. To have a better insight, the government budgets for the last 5 years were analyzed. The performance of different industries such as finance banking, oil gas, tourism, and trade was evaluated. Fiscal analysis was also conducted to understand how the government is assisting these vital sectors to boost the economy of the UAE. Finally, based on the analysis, the future economic condition of the UAE was forecasted.The United Arab Emirates (UAE), a federation of seven Arab emirates is one of the richest oil reserves in the world. It is situated in the southeast of the Arabian Peninsula in Southeast Asia. Oman and Saudi Arab are its neighboring country. The UAE includes seven emirates countries. they are Dubai, Abu Dhabi, Sharjah, Ajman, Ras al-Khaimah, Fujairah and Umm al-Quwain. Abu Dhabi is the largest emirates state followed by Dubai. The total area of the UAE is around 82,880 sq. km. and the Abu-Dhabi is the capital and the largest city (U.S. Department of State, “Profile”).The geographical location of Abu-Dhabi (along the coast) proved to be its greatest advantage with traders visiting this place since time immemorial. During the sixteenth century, the Portuguese started trading and established a stronghold in this region. However, the increase in trade also resulted in increased piracy that affected the trade and business of this region. Despite the potential threat, the place did not lose its charm as an attractive business destination and in the eighteenth century, the British laid their foot on this land. The British were responsible for ending the piracy.
The parent corporations of Maraven and Conoco are PDVSA and DuPont. When the impurities have been gotten rid of, the syncrude may be traded at market costs to Conoco in a Dupont-warranted off-take concord. After 35 years of buying concord, Conoco will move its shares without any cost to Maraven (Estry 1999, p.27).Petrozuata was financed due to a dual pronouncement in relation to fiscal and organizational configuration. Petrozuata was created because in Venezuela, regulation rules out possession of domestic hydrocarbon wherewithal. Therefore, Petrozuata has created a joint business enterprise with a long-standing off-take concord as a means of promoting venture in particular assets, bound ex-post negotiating costs, as well as dissuade opportunistic performance. Petrozuata possessed the three characteristics of project investment deals, for example, it was a financially and officially self-governing body, it was a working corporation with restricted life of 35 years, in addition to being financed with non-recourse liability for at least a fraction of its life. Petrozuata had the three characteristics that made a distinction between project investment and conventional commercial finance, in addition to additional structures of off-balance-sheet funding, for example, securitization (Henry 2006, p.254).Petrozuata plays the role of expanding money owing capacity for the reason that it represents a greater governance configuration that results in superior effectiveness and value. This is achieved by financially supporting large-scale investment expenditures and implicating an explicit alternative in regard to organizational structure, as well as fiscal structure. Sponsoring organizations formulate with authorization distinct bodies to build up, control, and fund Petrozuata. These bodies make use of some degree of or non-recourse foundation, which means that advance reimbursement relies on Petrozuata’s cash flows instead of the investments or universal credit of the supporting organizations.
The private companies have been observed to be faster in adopting improved production methods resulting in bigger profits, dividends and better service to clients (Glaeser, p664). There are several examples across many sectors that do support this view. This paper seeks to examine both the private and public systems and arguably determine if indeed the private and market-driven companies are superior to the state-owned systems.The performance of any company can usually be measured by examining four different factors. The first factor is the mean cost to consumers for services provided by the business measured by a convenient unit. Second in this category is the mean cost per unit of service production while the third is the operating and fixed profits achieved by the company. Yet another measure is employment. For each measure, the performance and rate of growth are compared between private and state-owned firms to give clear direction on whether it is on the right track or not (Friedman, Gray, Hessel Rapaczynski, p9).Several arguments are in support of state ownership. The theory of public goods states that some essential services, like say defence, have to be provided by governments as it is only taxation system of the governments that can finance these services. Good defence is considered a national pride and part of sovereignty. The defence can only be provided indirectly by private firms but under very close government scrutiny. The defence strategies applied by governments are kept secret only known by certain government officials.The continued provision of some essential services like health care can only be guaranteed if there is government control of the firms providing health care. In situations where there exist external, environmental and commercial pressures, governments can always step in to ensure continuous provision of affordable and available health care. This is because when it comes to health, the availability of good healthcare is considered more important than making profits.