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corporate policy and strategy – mergers and acquisitions.

Post graduation (MBA and other management degrees). It includes courses on Strategic Management, Business Environment and International Business.

Markets are becoming highly connective, accessible and communicative and reaching maturity at a very high phase. Acquisition is a choice to enhance the emerging and diversified markets. This case paper presents insights on Vedanta – Cairn India cross-border acquisition deal in Indian oil and exploration industry. This case synchronizes the gap between strategic planning and outcome of actions. The study exclusively evidences the reaction of stocks of all attached parties against acquisition announcement and compares with market performance.

Strategic mapping of business negotiations, while in-organic choices, further the impact of economic, political, legal and regulatory factors on cross-border mergers and acquisitions (M&A), deliberate deal financing mechanism and leadership diplomacy. It proposes from the viewpoint of corporate in-organic alternatives and to strengthen the upcoming research field of strategy & policy.

Global M&A market, shareholding pattern, income statement and balance sheet of Cairn India Ltd, financial figures of Vedanta Resources, tabular data on stock and index performance, deal structure and teaching note.

Mergers and acquisitions, corporate strategy.

This case could be applied in several courses: a mergers and acquisitions (M&A) course, to introduce the various motives for firms doing M&A, a strategy course exploring a company's strategy exploration and decision processes, or in a marketing course as an example about emerging and global market interaction. The target audience is primarily final year or Masters' and MBA students. It would also be useful for executive education seminars.

The Case provides learning opportunities about how companies encounter threats due to changing market or fiscal conditions, find ways to address their individual challenges yet achieve mutual benefit, by taking advantage of market-induced opportunities for strategic change, which have been triggered by a combination of situational factors.

The case can be used to illustrate and discuss several important aspects of the growth of companies in emerging markets, including: motives for making M&As; strategic options and selection in the emerging industry; and how regional firms can respond to globalization.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

This case may be taught singly or used as a merger-negotiation exercise with “Chrysler Corporation: Negotiations between Daimler and Chrysler” (UVA-F-1240). Set in February 1998, the case places students in the position of negotiators for the company; their task is to value both firms, assess the potential earnings dilution of a combination, and negotiate a detailed agreement with their counterpart. The case can be used to explore such interesting negotiation issues as determination of a share-exchange ratio, treatment of major stockholders, and structuring a deal. Also, the case and exercise can be used to spark a discussion of acquisition in comparison with strategic alliance, or other less formal models of combination.

This case may be taught singly or used as a merger-negotiation exercise with “Daimler-Benz A. G.: Negotiations between Daimler and Chrysler” (UVA-F-1241). Set in February 1998, the case places students in the position of negotiators for the company; their task is to value both firms, assess the potential earnings dilution of a combination, and negotiate a detailed agreement with their counterpart. The case can be used to explore such interesting negotiation issues as determination of a share-exchange ratio, treatment of major stockholders, and structuring a deal. Also, the case and exercise can be used to spark a discussion of acquisition in comparison with strategic alliance, or other less formal models of combination.

Against the backdrop of IBM Personal Computer Business's acquisition by Lenovo Group, this case introduces the remodeling process of Lenovo's HR organization and development team, during which the company's 5P principle, namely “Plan (think clearly before making promise), Perform (promise is to be fulfilled), Prioritize (company's interest is top priority), Practice (make progress every day in every year), Pioneering (venture any experiment to be a trailblazer), takes shape. After learning about Lenovo's recruitment of internationalized talents, cross-cultural coaches for senior leaders, cultural development in internationalization and risk aversion in international operations, we can understand what Lenovo's HR team does to avoid conflicts in corporate culture and ethnic culture in cross-border mergers and acquisitions and integration, and how to adjust and change the HR management system.

This case was designed for use at the undergraduate and MBA level in human resource management and international business. Upon completion of the case study discussion and assignments, students will be able to: (1) understand human resource management in multinational corporations and the importance of cross-cultural management and human resource integration in acquisitions; (2) understand the challenges and solutions faced by multinational corporations in the process of expansion; (3) analysis of what characteristics should be considered in CEO selection for managing a newly acquired company; and (4) analyze how to better promote global human resource management from the dimensions of localized HRM system reform and human resource structure reconstruction.

After a long period of negotiation, exploration, suspension and restart, Geely Group finally acquired 49.9% of the shares of DRB’s Proton Holding and 51% of the shares of the luxury car brand, Lotus Group. On the afternoon of May 24, Geely Holding Group held an acquisition signing ceremony with the Malaysia DRB-HICOM Berhad (hereinafter referred to as DRB). Geely’s commercial territory now extended into Southeast Asia, and its product spectrum increased to luxury sports cars.However, the completion of the acquisition did not mean peace of mind. On the contrary, Geely still faced a series of challenges because of differences in cultural background. The national cultures of the two countries (China and Malaysia) were very different, and so were the values of the two enterprises. Facing the challenges of promoting global human resource integration, Geely needs to make a fundamental decision on the HRM mode in the new-acquired company. Should Geely transplant its own management practice into the Proton, or adopt localized HRM philosophy? Which kind of global HRM practice would be more effective for supporting the new-acquired company developments in the future? In the post-acquisition management, how to better realize the global human resources integration become a key problem faced by Geely.

This case was designed for use at the undergraduate and MBA level in human resource management and international business.

Teaching notes are available for educators only.

CSS 6: Human Resource Management.

The objective of writing this case study is to allow management students to engage with the complexities of mergers and acquisitions (M&As) in the insurance sector in an emerging economy like India. Upon completion of this case study, the students will be able to critically evaluate the business environment of the insurance sector of a developing economy like India, analyse the impact of M&As on the insurance industry of India, appraise the post-merger consequences and strategies to deal with these consequences, assess the applicability of market power and growth theories in the context of M&As and develop a strategic action plan for handling post-merger challenges.

On 3 September 2021, the Insurance Regulatory and Development Authority of India (IRDAI) approved the “Scheme” related to the merger of the non-life insurance division of Bharti AXA General Insurance Company Limited (“Bharti AXA”) with ICICI Lombard General Insurance Company Limited (“ICICI Lombard”). Earlier, on 21 August 2020, the boards of the companies had approved entering into definitive agreements through a scheme of arrangement. The merger received approvals from different regulatory bodies as mandated (Gandhi et al., 2023). Bhargav Dasgupta, managing director and Chief Executive Officer of ICICI Lombard, stated, “This is a landmark step in the journey of ICICI Lombard, and we are confident that this transaction would be value accretive for our shareholders” (FE Bureau, 2020). However, the merger posed a dilemma for Dasgupta and the management regarding crop insurance owing to its impact on profitability. Crop insurance historically had high claim ratios nearing 135% for ICICI Lombard for financial year 2018. The company ceased to underwrite this product from 2019 onwards (TNN, 2019). However, ICICI Lombard had to fulfil the three-year commitment made by Bharti AXA to the state governments of Maharashtra and Karnataka towards crop insurance. It was a scheme initiated by the Government of India, covering farmers against losses due to cyclonic rains, rainfall deficits and other unforeseen calamities. Dasgupta faced a challenge in managing the interests of the farmers and the company’s shareholders while balancing profitability, which had already been impacted by the COVID-19 pandemic. This case study delves into post-merger complexities in the financial sector non-life insurance industry in emerging countries like India.

This case study is suitable for undergraduate and post-graduate management students and executives from the insurance industry.

Teaching notes are available for educators only.

CSS 11: Strategy.

International business

Undergraduate/graduate/executive education.

China has become the world's largest producer of automobiles, surpassing the USA and Japan. The Chinese auto industry differs quite significantly from those countries though. While the industry exhibits a substantial degree of concentration in the USA and Japan in early 2011, it remained highly fragmented in China. The Chinese Central Government had announced a desire for consolidation, yet it remained unclear whether a significant shakeout would occur in the near term.

Like many Chinese automakers, Chang'an partnered with well-known global auto makers to develop, produce, and distribute its products. In the coming years, Chang'an hoped to develop more independence from its foreign partners, including the production and distribution of self-branded cars. However, the company grappled with how it could strive for independence while managing its existing joint ventures. Executives worried too about how to compete with foreign automakers who had achieved global economies of scale.

The case provides a rich description of the evolution of the Chinese auto industry, and it documents how the Chinese industry differs from other global markets. Readers can analyze the extent to which they believe scale economies provide foreign firms an advantage over smaller Chinese rivals, and they can evaluate the conventional wisdom regarding the industry's minimum efficient scale. The case also provides a detailed account of Chang'an's rise to prominence. The case concludes by offering an in-depth description of the firm's key rivals, and it presents the key questions being considered by Chang'an executives in 2011.

Enables students to examine how and why an industry's structure can differ substantially across geographic markets.

Enables students to examine whether the need to achieve economies of scale may cause substantial consolidation in the Chinese auto industry.

Provides an opportunity to evaluate the pros and cons of the joint venture strategies employed in China.

Provides an opportunity to examine how a relatively small firm can position itself against large multinationals in a high-growth emerging market.

Teaching notes.

Madan Mohanka set up Tega Industries Ltd in 1976 to manufacture abrasion-resistant rubber mill lining products used in the mining and mineral processing industries. In 2006, as part of its inorganic expansion strategy, Tega bought a mill-liner company in South Africa. Buoyed by this growth, two acquisitions were made in Australia and Chile in the year 2011. However, post-acquisition, several managerial, legal and commercial problems crept up in its manufacturing facilities in Chile, leading to financial downturn in Tega's fortunes in 2016 and compelling it to either plan a revival or divest its interest in its Chilean Plant.

Madan Mohanka set up Tega Industries Ltd. in 1976 to manufacture abrasion-resistant rubber mill lining products used in the mining and mineral processing industries. In 2011, as part of its inorganic expansion strategy, Tega bought a company in Chile. However, post-acquisition, several managerial, legal and commercial problems crept up in its manufacturing facilities in Chile, leading to financial downturn in Tega's fortunes in 2016 and compelling it to planning a revival between 2016-19. However, political unrest and Covid 19 uncertainty has caused a dilemma related to further investments worth INR 1.25 billion. Management is contemplating the next steps.