The Merger Of Ba And Iberia Writing Sample

The financial environment in the UK is very competitive and impossible to predict. It is always changing and developing. Merger and Acquisition as the action of corporate, refers to the aspects of the strategy, finance and management of corporate that can help a company to develop rapidly. Merger and acquisition are developing enduring for more than one hundred year. Because of the recession, many companies in Europe implement merger and acquisition activities to deal with the economic crisis.

In this report, take the merger of British Airways and Spain’s national carrier Iberia as an example, the reasons of merger, the influences of the merger will be disabused. Merger and Acquisition A corporate merger is the creation of a single firm for two firms and combine their assets and liabilities. Merger tends to be used when the scale of the two enterprises are similar. It common occurs in high return industries. A corporate acquisition is the purchase of the target company by acquiring company.

Acquisition tends to occur when the scale of the two companies are not similar, a lager company controls a smaller company, common in low growth industries (Teriesen). Acquiring company refers to the firm which shares are continuing exist, but it may be under a different name, and the target company is referred to the firm whose shares are substituted by the acquiring company. The merger of BA and Iberia With the influence of the economic crisis, many industries have a negative effect. T the air transportation in Europe also has a strong hit.

The majority of airlines in Europe are facing a difficult trading condition, losing a lot of money, especially in 2008 and 2009. There were many challenges to be faced for the most airline companies, such as the economic slowdown, high fuel prices, and the decline of the passenger numbers. The economic turndown of 2008 affected the level of merger and acquisition activities in UK. But when the economy begins to recovery, the merger activities became popular in Europe. In a sense, global financial turmoil also creates opportunities.

Many companies choose merger and acquisition to cope with the recession. In the UK marketplace, lots of merger and acquisition events are happening. In recent time, the most famous merger event may be the merger between British Airways and Spain’s national carrier Iberia. In November 2009, British Airways and Spanish airline Iberia announced a preliminary agreement for a merger. The merger would create the third biggest airline in the world. The shareholders of BA retaining 55% ownership of the company, and Iberia shareholders would take a 45% stake.

Both of the two companies said that the merger would be benefit on customers, employees and shareholders of the two companies (BBC, 2010). The merger resulted in a new parent company, it has a new band name—International Airlines Group (IAG). On 21 January 2011, the merger of British Airways and Spain’s national carrier Iberia was completed and shares in the new holding company—IAG. On 24 January 2011, IAG primary listed on the London Stock Exchange, and then, the shares also began trading in Madrid on that day (Guardian, 2011). The merger also resulted in many changes in the role of the managers of BA and Iberia.

Willie Walsh became the CEO of IAG. His previous position in BA was taken by Keith Williams. Williams became the new CEO of BA. The chief executive of Iberia is Rafael Sanchez (IAG, 2011). The motives for the merger of BA and Iberia Merger can be broadly classified into three types: Horizontal merger, Vertical merger and Conglomeration merger. Horizontal merger refers to the combination of two companies which are the competitors in the same industry. Vertical merger refers to the merger of two companies which operate in different production stages, but also in the same industry.

Conglomeration merger refers to the combination of companies which sell the products are not related within different market (Watson & Head, 2010). According to these, the merger of BA and Iberia refers to the Horizontal merger. They both serve the airline business and they are the direct competitors in this industry. There are a lot of reasons for BA and Iberia to merge. During the last few years, both of the two companies had a miserable time. They have been losing money during the recession. The expenditures of these two companies in 2009 were getting larger than that in 2008.

In 2008 the total expenditures on operation is 7,880 millions, the profit after tax is 726 millions, but in 2009, the expenditures on operation reached 9,212 millions, and the loss after tax is 358 millions (British Airways Annual Report, 2009). The merger may be the best ways for these two companies to deal with the downturn. Merger could bring them more benefits than the companies separate as individuals. When the two companies combined, May be they are worth more than when they are separate as two companies. The prevent value of combined company PVx+y, is more than PVx+PVy (Watson & Head, 2010).

The reasons for the merger of BA and Iberia may be the Economies of scale, synergies and the market share. Economies of scale The first motivation of this merger is probably Economies of scale, Economies of scale means that with the expanding of the scale of production, the unit cost of the product decline, and lead to the rate of turn increase. The scale of operation is larger after merger. Economies of scale are often arising in the areas such as finance, distribution, management and production. After merger, the new airline group IAG will combine their routes, employee and aircrafts.

The merger will resulted in the scale of new group became bigger. Before merger, BA has 245 aircrafts and fly to 141 destinations, Iberia has 174 aircrafts and fly to 109 destinations. After merger, the IAG owns 419 aircrafts and fly to 205 destinations ( BBC, 2009). The operation scale is larger than before. They also would save the costs by cutting down the overlapping rotes and reduce the staff, these make them have more abilities to buy new planes for its own company and also have ability expand to their business to more destinations, and get more profits.

Synergies The second reason for the merger of BA and Iberia is probably the synergy. Synergy may happen when the assets and operations of one company is the complement of another company, so that the output, value and performance of the combined company is more than the sum of separate companies. The mergers are executed to achieve synergies, compromising financial synergies, operational synergies, and managerial synergies.

Analyzing Wal-Mart’s Distribution And Logistics System Analysis

Analyzing Wal-Mart’s Distribution and Logistics System Wal-Mart has been able to achieve respectable leadership in the retail industry because of its focus on supply chain management. Discuss in detail the distribution and logistics system adopted by Wal-Mart. Supply Chain Case Study by Jimmy Alyea As the world’s largest retailer with net sales of almost $419 billion for the fiscal year 2011, Wal-Mart is considered a “best-in-class” company for its supply chain management practices.

These practices are a key competitive advantage that have enabled Wal-Mart to achieve leadership in the retail industry through a focus on increasing operational efficiency and on customer needs Wal-Mart’s corporate website calls “logistics” and “distribution” the heart of its operation, one that keeps millions of products moving to customers every day of the year. Wal-Mart’s highly-automated distribution centers, which operate 24 hours a day and are served by Wal-Mart’s truck fleet, are the foundation of its growth strategy and supply network.

In the United States alone, the company has more than 40 regional distribution centers for import flow and more than 140 distribution centers for domestic flow (Logistics, 2011). When entering a new geographic arena, the company first determines if the area will be able to contain enough stores to support a distribution center. Each distribution center supports between 75 to 100 retail stores within a 250-mile area. Once a center is built, stores are gradually built around it to saturate the area and the distribution network is realigned to maximize efficiencies through a process termed “reoptimization” (Troy, 2003).

The result is a “trickle-down” effect: trucks do not have to travel as far to retail stores to make deliveries, shorter distances reduce transportation costs and lead time, and shorter lead time means holding less safety inventory. If shortages do occur, replenishment can be made more quickly because stores receive daily deliveries from distribution centers. The company’s hub-and-spoke distribution network utilizes a system of manufacturer storage with customer pickup.

No inventory is stored at Wal-Mart’s distribution centers. Wal-Mart’s fleet of 6,500 dedicated trucks and over 50,000 trailers (SC Digest’s editorial staff, 2011) are used to pick up goods directly from manufacturers’ warehouses, thus eliminating intermediaries and increasing responsiveness. The use of trucks raises transportation costs but is justified in terms of reduced inventory. Merchandise brought in by truck to distribution centers is sorted for delivery to stores within 24 to 48 hours.

However, certain goods, such as automotive and drug products, are delivered directly to stores by suppliers. Wal-Mart, a pioneer in the logistics technique of cross-docking, also has store-specific orders packed and shipped directly to the store by the manufacturer. Because Wal-Mart’s fast, responsive transportation operations are such a major part of the company’s successful logistics system, great care is taken in the hiring, training, supervising, and assigning of drivers’ schedules and job responsibilities.

From the onset of his retailing career, Wal-Mart founder Sam Walton recognized the importance of hiring experienced people and of building loyalty not only in his customers but also in his employees. The company hires only experienced drivers who have driven more than 300,000 accident-free miles and whom it believes will be committed to customer service. Its retail stores are considered important “customers” of the distribution centers. As stated in the “Private Fleet Driver Handbook” that each driver is given a copy of, drivers are expected to be “polite” and “kind” when dealing with store personnel and others.

In addition to containing a driver’s code of conduct, the Private Fleet Driver Handbook gives instructions and rules for following pre-planned travel routes and schedules, the responsible unloading of a truck trailer at a retail store, and the safe-guarding of Wal-Mart’s property. For example, although drivers deliver loaded trailers in the afternoon and evening hours, a trailer can be brought to the store’s docks only at its scheduled unloading time.

Because unloading is done at two-hour intervals during the night, a driver is expected to spend the night, returning to the distribution center at a pre-scheduled time with an empty trailer. Coordinators closely monitor the detailed records of each driver’s activities for adherence to rules. Violations are dealt with according to handbook procedures, which include employee education to prevent future occurrences of incorrect actions. By effectively managing every aspect of its transportation operations and treating its drivers fairly, Wal-Mart gets results that are unrivaled in the logistics arena.

This philosophy parallels the successful coaching style of New York Giant’s football coach Tom Coughlin who believes that rules are more than just discipline. Rules are a key to consistency, which leads to preparedness, which then leads to proper execution (Pennington, 2012). Copyright 2012 James L. Alyea. All Rights Reserved. About Jimmy Alyea: Jimmy Alyea lives in Houston, Texas, and holds two Bachelor of Business Administration degrees (Supply Chain Management and Marketing) and a Master of Business Administration degree. Follow Jimmy Alyea (James L. Alyea) on LinkedIn, Twitter, or Blog.

References

Chandran, P. M. (2003). Wal-Mart’s supply chain management practices. ICFAI Center for Management Research. Retrieved from www. icmrndia. org Chopra, S. , & Meindl, P. (2010). Supply chain management: strategy, planning, and operation. 4th ed. Prentice Hall: New York. Logistics. (2011). Walmartstores. com. Retrieved from http://walmartstores. com/AboutUs/7794. aspx. Pennington, B. (2012, January 22). Tom Coughlin goes by the book and wins. New York Times.

Retrieved from http://www. nytimes. com/2012/01/22/sports/football/tom-coughlin-goes-by-the-book-and-wins. html? pagewanted=all SC Digest’s editorial staff. (2011, October 12). Wal-Mart tells CSCMP audience it is more flexible on inbound transportation program. Supply Chain Digest. Retrieved from http:www. scdigest. com/ONTARGET/11-10-12-1_Walmart_Inbou… Troy, M. (2003). Logistics still cornerstone of competitive advantage. Retailing Today. Retrieved from http://search. proquest. com. ezproxy. udh. edu/docprintview/22851744…

Country Vs City Life Comparison

The objective of this text is to demonstrate the various ways in which country life and city life differ. It aims to assist individuals in determining the ideal place to live if they are seeking change. Since these topics are extensive, focusing on key points will provide a more diverse analysis. These key points include economic differences, such as job opportunities and everyday expenses; environmental differences that impact health and mental well-being; and social differences, encompassing individuals’ attitudes, behavior, perception of others, and participation in social events.

In conclusion, there are various lifestyle disparities between country and city living, encompassing the economy, environment, society, and lifestyle. These factors ultimately determine which community an individual would choose. Firstly, in terms of economic differences, cities offer a plethora of job opportunities due to the abundance of businesses and residential areas. Additionally, the presence of public transportation facilitates easier commuting to work as compared to rural areas. In contrast, country regions are distanced from major economic hubs, thereby prompting residents to engage in agricultural activities and dependency on the land for sustenance.

Although some individuals still commute long distances to urban areas for work, living in cities or businesses typically results in higher fuel efficiency compared to rural areas. It is crucial to acknowledge that people residing in the countryside and participating in farming activities require fuel for their equipment, leading to increased costs. Nevertheless, studies indicate that the agricultural industry will profit from future food demand, making it a smart investment that could influence decisions about relocation. Additionally, it is important to consider the impact of diverse environments on one’s health.

Cities have a high concentration of large corporations that release pollutants into the air, such as chemicals and carbon dioxide. The abundance of vehicles in cities also contributes to higher levels of carbon dioxide. In contrast, rural communities have cleaner air due to more vegetation, which helps filter the air. Additionally, rural areas have fewer businesses and cars, resulting in less air pollution. Therefore, different environments indeed impact health. A fascinating graph below provides interesting facts on this topic (source).

Highlighting societal differences further, city life is characterized by a fast-paced lifestyle that often leaves people feeling stressed and on edge. Busy schedules and traffic jams contribute to the daily stressors of urban living. This leads to negative attitudes and incidents of road rage and physical confrontations. On the other hand, residents of rural communities tend to have more open and friendly interactions with each other since they belong to smaller communities not subjected to the same stressors faced by city dwellers.

In rural communities, there is often a strong sense of unity and camaraderie due to the limited accessibility of resources and amenities. This lack of convenience leads residents to rely on each other for support and engage in trade based on their individual capabilities. Additionally, social gatherings in rural areas differ from those in urban environments where entertainment options like nightclubs, bars, casinos, theaters, and stadiums are readily available. Instead, the countryside offers its own unique activities. Contrary to common beliefs, life in rural areas is far from boring as individuals participate in pastimes such as fishing and hunting to occupy their time.

Furthermore, there are diverse and thrilling activities like demolition derbies and meat shoots. These meat shoots consist of competitive shooting competitions where the victor of each round earns portions of meat. While urban bars typically organize these events using bb guns, people from rural areas usually employ shotguns. Lastly, drawing from my own personal experience, I was raised in a rural setting that I believe is an outstanding place to live. Devoid of internet or cell phone access and restricted to only two television channels, it provided an exceedingly serene ambiance.

Having grown up in a remote area, I learned survival skills and had to be resourceful and adaptable. However, my life drastically changed when I moved to the city at twelve years old and lived with my grandmother. City life introduced me to modern luxuries like cable TV, cell phones, and especially plumbing. Eventually, we even got Internet access. It became clear that urban living offered convenience but also increased stress levels and a generally more tense atmosphere. In summary, there are significant differences in lifestyles between rural and urban areas that include economic and environmental factors.

Furthermore, I have compared societal differences and reflected on my own lifestyle. Although these subjects are expansive, I have focused on a specific aspect. The preceding text is a combination of objective information and my personal observations. Personally, I believe that the pristine land and fresh air of the country surpass the pollution and congestion of the city. However, it is up to the readers to form their own opinions.

Reference page

The article “City versus Country who is healthier” by Beck, M. was retrieved from the website http://online.wsj.com/article/SB10001424052702304793504576434442652581806.html.

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