An overview of mergers, joint ventures and acquisitions will help all management students to understand its need in today's business.

2. Designation: PGDM Student
Batch: 2012-2014.
Specialization: Major – Marketing
Minor – Finance
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4. When one company takes over another and clearly
established itself as the new owner, the purchase is
called an acquisition.

5.  Gain market share.
 Economics of scale.
 Enter new market.
 Acquire technology.
 Utilization of surplus funds.
 Managerial effectiveness.
 Strategic objectives.
 Horizontal integration.

7. • Location: Dearborn, Michigan
• Founded: 1903 by Henry Ford
• Competitors: General Motors, Toyota
• Brand names: Lincoln, Mercury, Volvo, Mazda,
Jaguar and Land Rover.
• CEO: Alan Mulally.

8.  TATA GROUP – 150 YEAR OLD
 Previously Tata Engineering and Locomotive
Company, Telco
 Tata Motors’s break-even point for capacity
utilization is one of the best in the industry
worldwide
 listed on the New York Stock Exchange in 2004

10.  July 2007- Announcement from Ford that it plans to sell
Land Rover and Jaguar.
 August 2- India’s Tata Motors and M&M arrive as top
bidders ($ 2.05b & $ 1.9b)
 Jan 2008 – Ford announces Tata as the preferred bidders
 March 2008 - Ford agreed to sell their Jaguar Land
Rover operations to Tata Motors.
 June 2008 – The acquisition is complete.

11.  Long term strategic commitment to automotive sector.
 Opportunity to participate in two fast growing auto
segments.
 Increased business diversity across markets and product.
 Jaguar offers a range of “performance/luxury” vehicles to
broaden the brand portfolio.

12. Graph of Jaguar and Land Rover

14.  Group : Vodafone P/C
 HEADQUATERS: Berkshire, UK
 Industry : mobile telecommunication
 Presence : equity involvement in 25 countries and
network partner in 42 countries
 Strength : 2,30,000 employee
 Revenue : 35478 million pounds (14.1% growth)
 Net income : 10047 million pounds (10.1% growth)

15.  Background : Hutchisson Essar ltd.
 Founded in 1992
 Circle :16+ license for 6 circles
 Revenue : US $1282 million
 EBITDA :US $415 million
 Operating profit : US $315 million

16.  Telecom business in Japan and Belgium were
not performing up to the world market.
 Market including the US market were
maturing and were not growing in a big way.
 Stiff competition among almost all major
player in industry, global telecom giants like
BT, O2 of UK version from US, maxis
telecommunication of Malaysia
As a example:- reliance and bharti airtel from
india

17.  Vodafone became no.1 for tele communication
in india (source: business standard, edition 16th
april, 2010).
 India is the world’s 2nd most populated
country, with over 1.1 billion people.
 India benefits from strong economic
fundamentals with exceeded real GDP growth
in high single digits.
 Increases Vodafone presence in higher growth
emerging markets.

20. 1. Founder- J.N. Tata
2. 102 yrs. In Steel Market
3. World’s 56th largest
4. Capacity of 30 million
5. Presence in 26 nations

21. 1. World’s 6th largest
2. 2nd in Europe & 1st in U.K.
3. 3…1st rank in fortune list
4. Presence in 50 nations
5. 40000 people worldwide

22.  Tata- Chorus deal – US$ 12.2 billion
 Equity contribution from Tata Steel – US$ 3.88
billion.

23.  Augmented its crude steel capacity to 27
million tonnes per annum
 The combined entity forms the 6th largest steel
company
 Capacity to produce 56 million tonnes per
annum by 2015.

25.  A joint venture is an entity formed between
two organizations to undertake economic
activities together. Both of them contribute
equity and then they agree to share the
revenues, expenses and control of the newly
formed enterprise.

26.  Both partners should appreciate the need for
the joint venture.
 The partners should clearly agree on the way
the joint venture will be managed.
 It is important that both partners work towards
a system based on trust and transparency.
 Need to have a clear long term goal and set the
terms and conditions of the venture.

28.  In 2003, Hyundai has an investment of $250 million
in China in conjunction with Beijing Automotive to
produce 100,000 units per year .
 Hyundai projects and plans production to be
200,000 units per year by 2005.

29.  Established in 1967, Hyundai is presently
South Korea’s #1 car-maker, manufacturing
dozens of models of cars, vans, and minivans.
 Throughout the past two decades, Hyundai
introduced various models: Pony, Excel,
Sonata, and Accent.
 In 1990, Hyundai introduced its own engine
design, the Alpha. Two years later, it
introduced its second-generation engine, the
Beta.

30.  Beijing Automotive Group (officially Beijing
Automotive Industry Ltd.) is a holding
company of several Chinese automobile and
machine manufacturers such as Beijing
Automobile Works Co Ltd. etc. It is commonly
known as Beiqi.
 2011 production of 1,526,300 whole vehicles
made Beiqi the fifth largest, in terms of units
manufactured, vehicle-maker in China that
year.

32.  Hyundai agreed to pay $250 million in a joint
venture with Beijing Automotive.
 Starting at 1,00,000 units in 2003, plans to expand to
200,000 units by 2005.
 If the production is a success, Hyundai will invest
$1.1 billion to increase productivity to 5,00,000 by
2012.

33.  Production :
 Starting at 1,00,000 units, production increased by 50,000
till 2005, ultimately producing 2,00,000 units.
 From 2005 to 2011, production increased 60,000 units per
year.

34.  In order to be successful :
 Must form synergies on all levels with China and Beijing
Automotive.
 Hyundai must use their experience in investing in 4 other
plants in China.
 Take advantage of the first mover opportunity in China’s
de-regulated auto market.

35.  Great opportunity for Hyundai’s business
development.
 Tremendous global growth potential.
Bottom line : There is lots of money to be discovered
and made in the emerging markets of Korea and
China !!!

37.  Maruti Suzuki India Limited , commonly referred to as Maruti, is a subsidiary
company of Japanese automaker Suzuki Motor Corporation. It has a market share
of 44.9% of the Indian passenger car market as of March 2011.
 Maruti Suzuki offers a complete range of cars from entry level Maruti 800 and Alto,
to hatchback Ritz, A-Star, Swift, Wagon-R, Estillo and sedans DZire, SX4, in the 'C'
segment Maruti Eeco, multi purpose vehicle Ertiga and sports utility vehicle Grand
Vitara.
 It is the market leader in India, and on 17 September 2007, Maruti Udyog Limited
was renamed as Maruti Suzuki India Limited. The company's headquarters are
on Nelson Mandella Rd, New Delhi.In February 2012, the company sold its 10th
million vehicle in India.
 Maruti Suzuki is India and Nepal's leading automobile manufacturer and the
market leader in the car segment, both in terms of volume of vehicles sold and
revenue earned. Until recently, 18.28% of the company was owned by the Indian
government, and 54.2% by Suzuki of Japan.
 Maruti Suzuki will be introducing new 800cc model by Diwali in 2012.The model is
supposed to be fuel efficient, hence more expensive.

38. For Maruti :-
 Suzuki Motor Corporation,the parent company,is a global
leader in mini and compact cars for three decades.
 Suzuki’s technical superiority.
 Lightweight engine that is clean and fuel efficient.
 Near 75000 people are employed directly by Maruti Suzuki
and its partners.

39. For Suzuki:
 Large Indian market.
 Monopolistic Trade in the Indian automobile
market.
 Availability of resources.

42.  Type:- Public company
 Founded:- 1975
 Headquarters:- Delhi, India
 Services:- Electricity generation & distribution
of natural gas exploration.
 Revenue:- Rs.620.53 billion (US$11.23 billion)
(2011-2012)
 Net income:- Rs.92.23 billion (US$1.67 billion)
(2011-12).
 Employees:- 26,000 (2012)

43.  Type:- Public
 Founded:- 1975
 Headquarters :- Kolkata, West Bengal, India
 Product :- Coal, Bituminous
 Revenue:- Rs.624.15 billion (US$11.3
billion)(2012)
 Profit :- Rs.147.88 billion (US$2.68 billion)(2012)
 Owner(s) :- Government of India
 Employees:- 383,347 (April 2011)

44.  Coal India feeds 82 out of 86 coal based
thermal power plants in India.
 Joint venture has been signed between NTPC &
Coal India Ltd. For development of Brahmini &
Chichro coal mine with 50:50 equity
participation.
 NTPC is ramping up its generation capacity &
is expected to increase its market share from
about 19% today to around 25% by 2017.
During 11th plan your company has already
commissioned 3240 mega watt capacity.

48. INDEPENDENT ORGANIZATIONS
HAVING A CRITICAL BUSINESS
DEAL.

49. SA is a kind of partnership between two entities in
which they take advantage of each other’s core
strengths like proprietary processes, intellectual
capital, research, market penetration, manufacturing
and/or distribution capabilities etc. They share their
core strengths with each other. They will have an
open door relationship with another entity and will
mostly retain control.

51. Boeing is the world’s leading aerospace company
and the largest manufacturer of commercial jetliners
and military. It was established by William Boeing
in 1916 in Seattle, Washington. Its international
headquarters now has been located in Chicago,
Illinois. The major products are commercial
airliners, military aircrafts, munitions, space systems
and computer services. With respect to its
commercial airplanes, this company has launched
into the world market models like 737, 747, 767,
777, and the latest one is 787 Dream-liner
(Commercial Airplanes).

52. The European Aeronautic Defense and Space Company
EADS N.V. (EADS) is the largest European aerospace
corporation and was founded on July 10, 2000 from the
merger among Aerospatiale-Marta of France, Construcciones
Aeronautic as SA (CASA) of Spain and DaimlerChrysler
Aerospace AG (DASA) of Germany. This company mainly
focuses on developing and producing the civil and military
aircrafts, missiles, space rockets, satellites and related
systems. Airbus is one of its important divisions. This branch
has penetrated into the global market the five big aircraft
families including A320 family , A300/A310
family, A330/A340 family, A350 family and the newest one-
A380 (Airbus).

53. In order to take advantage of the other nations’
comparative advantages in technology and to
achieve the economies of scale and to reduce excess
capability, Airbus and Boeing apply the “strategic
alliance” including joint R&D efforts and joint
production of a particular component. It means they
did not produce all the components of their planes.
Instead, they share their jobs to their partners or
concentrate on the activities in low-cost or high
skills countries to increase their productivity and
reduce costs.

55. • Inadequate pre-planning for the strategic
alliance.
• The desired technology never developed.
• Agreements could not be reached on
alternative approaches to solve the basic
objectives of the strategic alliance.
• People with expertise in one company refused
to share knowledge with their counter-parts in
the strategic alliance.
55

57. To develop communications and
infrastructure solutions that combine Cisco's
industry-leading network solutions and
products with Wipro's infrastructure and
managed services expertise.

58. WIPRO :-
Azim
Premji, chairman, has
led WIPRO since 1966.
Today it is a US$5
billion revenue
IT, BPO and R&D
services organization
with a presence in over
50 countries.
CISCO :-
Leonard Bosak and
Sandy Lerner founded
CISCO in 1984. Today
it has a revenue of US$
46.06 billion on the
networking equipment.

59.  To provide innovative solutions that deliver
business value to customers.
 To create industry specific solutions for
sectors such as banking, finance, retail,
energy & utilities and healthcare & life
sciences.
 To become the leading 360 degree strategic
partner.

60.  To attain technological leadership.
 To create differentiated joint offerings.
 To adopt next generation engagement models
which enable customer's business outcomes.

62.  Developing an integrated value proposition.
 Board level governance to ensure strategic
organizational alignment.
 Market collaboration and GTM strategies.
 Joint cloud strategy.
 Scalable business architecture.

64.  Type of site:- Social networking service.
 Users:- 955 million(active June 2012)
 Owner:- Facebook, Inc.
 Created by:- Mark Zuckerberg
Eduardo Saverin
Andrew McCollum
Dustin Moskovitz
Chris Hughes.
 Launched:- February 4, 2004
 Revenue :- $3.71 billion (2011)

65.  Industry:- Computer software
Online services
Video games
 Founded:- Albuquerque, New Mexico, United
States (April 4, 1975)
 Founder(s):- Bill Gates, Paul Allen
 Headquarters:- Microsoft Redmond
Campus, Redmond, Washington, U.S.
 Area served:- Worldwide
 Revenue:- US$ 73.72 billion (2012)
 Employees:- 94,000 (2012)

66.  Two companies expand advertising deal to
cover international markets, Microsoft to take
equity stake in Facebook. Microsoft took a US$
240 million equity stake in Facebook. At the
launch of Facebook, it was not used worldwide
but in some places with the help of Microsoft
he did the advertisement & as a result his users
increased.
 Facebook’s users increased from 50million to
750 million.

67.  July 2012, the countries with the most
Facebook users were:
 United States with 155.6 million members
 Brazil with 52.8 million members
 India with 51.0 million members
 Indonesia with 44.0 million members
 Mexico with 36.2 million members
 All of the above total 309 million members or
about 38.6 percent of Facebook's 900 million
worldwide members.

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