DATA WAREHOUSE AND THE WEB

Professor Peter Drucker, the senior guru of management practice, has admonished IT executives to look outside their enterprises for information. He remarked that the single biggest challenge is to organize outside data because change occurs from the outside. He predicted that the obsession with internal data would lead to being blindsided by external forces. 

The majority of data warehousing efforts result in an enterprise focusing inward; however, the enterprise should be keenly alert to its externalities. As markets become turbulent, an enterprise must know more about its customers, suppliers, competitors, government agencies, and many other external factors. The changes that take place in the external environment, ultimately, get reflected in the internal data (and would be detected by the various data analysis tools discussed in the later sections), but by then it may be too late for the enterprise. Proactive action is always better than reacting to external changes after the effects are felt. The conclusion is that the information from internal systems must be enhanced with external information. The synergism of the combination creates the greatest business benefits. 

The importance of external data and the challenges faced in integrating external data with internally sourced data by Load Manager. Some externally sourced data (particularly time sensitive data), is often distributed through the internet.

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Reliability of Web Content 

Many question the reliability of web content, as they should. However, few analyze the reliability issue to any depth. The Web is a global bulletin board on which both the wise and foolish have equal space. Acquiring content from the Web should not reflect positively or negatively on its quality. 

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M & A AND STEPS IN M & A

WHAT IS M & A ? WHY M & A ? STEPS IN M & A DEAL ?

 

 

MERGERS AND ACQUISITIONS (M&A) 

Mergers and acquisitions and corporate restructuring - or M&A for short - are a big part of the corporate finance. One plus one makes three: this equation is the special alchemy of a merger or acquisition. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Two companies together are more valuable than two separate companies -at least, that’s the reasoning behind M&A. This idea is particularly attractive to companies when times are tough. Strong companies will act to buy other companies to create a more competitive, cost-efficient company. The companies will come together hoping to gain a greater market share or achieve greater efficiency. Because of these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone.

 

A corporate merger is essentially a combination of the assets and liabilities of two firms to form a single business entity. Although they are used synonymously, there is a slight distinction between the terms ‘merger’ and ‘acquisition’. Strictly speaking, only a corporate combination in which one of the companies survives as a legal entity is called a merger. In a merger of firms that are approximate equals, there is often an exchange of stock in which one firm issues new shares to the shareholders of the other firm at a certain ratio. In other words, a merger happens when two firms, often about the same size, agree to unite as a new single company rather than remain as separate units. This kind of action is more precisely referred to as a “merger of equals.” Both companies’ stocks are surrendered, and new company stock is issued in its place. When a company takes over another to become the new owner of the target company, the purchase is called an acquisition. From the legal angle, the ‘target company’ ceases to exist and the buyer “gulps down” the business and stock of the buyer continues to be traded.

 

 In summary, “acquisition” is generally used when a larger firm absorbs a smaller firm and “merger” is used when the combination is portrayed to be between equals. For the sake of discussion, the firm whose shares continue to exist (possibly under a different company name) will be referred to as the acquiring firm and the firm’s whose shares are being replaced by the acquiring firm will be referred to as the target firm. However, a merger of equals doesn’t happen very often in practice. Frequently, a company buying another allows the acquired firm to proclaim that it is a merger of equals, even though it is technically an acquisition. This is done to overcome some legal restrictions on acquisitions. 

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PROCESS OF STRATEGY

THE PROCESS OF STRATEGY

 

The process of strategy is cyclical in nature. The elements within it interact among themselves. Figure-1 present the process for single SBU firm. The process has to be adjusted for multiple SBU firms because there it is conducted at corporate level as well as SBU levels as these firms insert SBU strategy between corporate strategy and functional strategy. Initially, the process of strategy was discussed in terms of four phases which are:

 

1.   Identification phase

2.   Development phase

3.   Implementation phase

4.   Monitoring phase 

The process of strategy does not have the same steps as stated by different authors. 

According to C.K. Prahalad, the process comprises of five steps. They are: 

1.   Strategic Intent

2.   Environmental Analysis

3.   Evaluation of strategic alternatives and choice

4.   Strategy Implementation

5.   Strategy Evaluation and Control 

For our understanding, the process has been divided into the following steps: 

1.   Strategic Intent

2.   Environmental and Organizational Analysis

3.   Identification of Strategic Alternatives

4.   Choice of Strategy

5.   Implementation of Strategy

6.   Evaluation and Control

 

FIG-1 : STRATEGIC PROCESS 

 

 

 FIG-1 : Strategic Process in a Single SBU Firm

 

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Merger and Acquisition

Explain the concept of merger and acquisition. Describe the role of agencies in the formation of mergers and acquisitions. Illustrate the process of merger and acquisition with reference to an organization.

Ans : Management theory and practice has given change theories, models and tools but intense competition forces organizations to grapple the change which is changing faster than change itself. One of the successful ways of meeting such contingencies is restructuring. The current restructuring modes all over the world appear to be the phenomenon of mergers and acquisitions.

Every mergers or acquisition goes through a learning process of its own. Peter Drucker, for instance provides a set of ‘rules’ of successful acquisition. If managed properly merger and acquisition (M & A) can help the organization take a path of growth and prosperity.

Concept of merger and acquisition : 

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