The purpose of this paper is to provide an understanding of the importance of socioemotional wealth (SEW) to family firms in Poland viewed through the lens of the events…
The purpose of this paper is to provide an understanding of the importance of socioemotional wealth (SEW) to family firms in Poland viewed through the lens of the events surrounding the first hostile takeover bid of the post-communist era on the Warsaw Stock Exchange when the clothing company Vistula & Wólczanka (V&W) made an unsolicited, leveraged bid for the family-controlled jewelry company W. Kruk.
The 2008 takeover and its aftermath are described in the context of the corporate governance and legal environment in Poland. The case study events demonstrate the connection between firm behavior and SEW theory.
After the acquisition of W. Kruk by V&W, the Kruk family purchased stock in the newly named Vistula Group and gained influence over the supervisory board in concert with a business ally, eventually wresting back control of the company in the style of a Pac-Man “defense.” The case study illustrates the importance of SEW in family firm takeovers.
The case study design has limitations for generalizability. Nevertheless the research highlights the important role of SEW preservation in understanding the market for corporate control of listed family firms in Poland.
Understanding the reaction by family firms to takeover bids requires recognition that there is a tradeoff between financial and SEW considerations, not just financial gains and losses.
The case study demonstrates the importance of SEW to family firms and suggests that the balance of power in takeovers on the Polish stock market rests with incumbent management.
Takeovers play an important role in the allocation of re‐sources to the most efficient uses and represent a mech‐anism by which corporate resources are transferred from…
Takeovers play an important role in the allocation of re‐sources to the most efficient uses and represent a mech‐anism by which corporate resources are transferred from one management team to another (Jensen and Ruback, 1983). A result of this managerial displacement is expected to be an increase in shareholder wealth. This argument pre‐supposes that managers attempting takeovers are motivated to create value for shareholders. This picture of managerial disinterestedness in the service of share‐holders ignores potential agency conflicts between man‐agers and shareholders. When faced with a takeover bid, which if successful may lead to its own displacement, the management team at the target may devise ways of frus‐trating the bid.
The different types and characteristics of mergers and acquisitions are examined, and some defensive and offensive strategies and tactics explained. Reasons for mergers and takeovers are also dealt with. The article includes a glossary of terms, an example of a summary of Rights to Purchase for a corporation (Bell Atlantic) and three case examples of merger and takeover (Chrysler/AMC′s friendly merger; Shamrock′s hostile and unsuccessful bid for Polaroid; and Campeau′s takeover of Federated Department Stores).
During the past decade Wall Street practitioners devised various methods for converting undervalued corporate shares into instant wealth. Their tactics, however, have had…
During the past decade Wall Street practitioners devised various methods for converting undervalued corporate shares into instant wealth. Their tactics, however, have had highly negative consequences for a number of companies. Many companies have, in fact, restructured with substantial debt with severe operational consequences. The purpose of this paper is to examine the reasoning behind such a boom in the hostile takeover activities. It will discuss the importance and implications of restructuring, causes for corporate hostile takeovers and the defense strategies that effectively resist external acquisition.
In the continuing endeavour to work towards ever better management, the engineering manager has a crucial role to play. The history of the engineer is reviewed and his/her possible present role in management is considered. Management objectives are outlined and defined and the specific role of the engineer emphasised. The best managers are leaders, in particular effective leaders of teams, and this is a management task well within the grasp of the engineer. The engineer′s specific training and initial experience give him/her special qualifications in this area. Indeed, there seems to be no reason why the engineer should not climb the management ladder right to the top, especially these days when technology is continually growing in importance. The demands made on the effective chief executive are outlined. It would seem that engineering management has come of age and that with the appropriate management training the engineer should be well capable of filling a senior management role.
The case explores information technology (IT) company Mindtree’s journey of 20 years from the time it was founded in 1999 to be different from others, and how it became a target for acquisition by an Indian diversified conglomerate in 2019. It offers insights into developing organizational culture and values in an organization, threats faced by a company when promoters dilute their shareholding, and the strategies followed by the acquirer and the target firm. It also deals with the challenges in the acquisition of a knowledge service digital firm. After working through the case and assignment questions, students will be able to: identify the circumstances under which a company can become a target for hostile takeover; describe motivations of the acquirer firm in an acquisition; distinguish between acquisition and hostile takeover, and discuss salient features of Securities and Exchange Board of India (substantial acquisition of shares and takeover) regulations, 2011; list the defenses a target firm can adopt to ward off hostile acquirer; explore strategies followed by acquirer and target firms; analyze important ingredients of organization culture, and importance of cultural congruence in an acquisition; and discuss challenges faced by an acquirer in India, namely, legal, retention of clients and key people in the target firm particularly in hostile environment.
The case explores how ten IT professionals founded mid-tier IT services company Mindtree in 1999 in Bengaluru, India (home to Infosys and Wipro) to be different from others – by inserting themselves at a higher level in the value chain, being philanthropic as a part of broader business strategy to attract a certain kind of employee and customer. It developed a culture of equality, consideration and respect. Its attrition rate of 12 to 13 per cent was significantly lower than the Industries. Mindtree crossed annual revenue of US$1bn for FY 2019 and was growing at twice the industry’s growth rate. The most attractive part was that its proportion of revenue from digital services was about 50 per cent as compared to 25-35 per cent of other services vendors. With time, the share of promoters/founders declined and increased one investor’s shareholding of V. G. Siddhartha and his related entities. In early March 2019, the promoters’ stake was 13.32 per cent while Siddhartha had 20.32 per cent. Larsen and Toubro (L&T) one of India’s conglomerate entered into a share purchase agreement on March 18, 2019 with Siddhartha to acquire his 20.32 per cent stake. Immediately, L&T asked its broker to purchase up to 15 per cent of share capital of Mindtree at a price not exceeding INR 980 per share (each share of face value INR 10). This would trigger an open offer by L&T to purchase additional 31 per cent shares of Mindtree. The action of hostile takeover bid by L&T evoked emotional criticism from Mindtree founders. Mindtree efforts to defend itself could not materialize. L&T’s stake crossed 26 per cent on May 16, 2019. After Indian regulator SEBI’s approval, L&T’s open offer to buy shares from Mindtree shareholders commenced on June 17, 2019. The case examines motivation of the acquirer firm particularly when it is a conglomerate, and how a well-performing company became a target for hostile takeover. It looks at vulnerabilities of a target firm, and defensive steps a firm can take to fence itself against such takeover. The case also explores how organizational culture is built in a people-oriented business, namely, digital services, and what role it plays in a merger of two firms.
Complexity academic level
The case is suited for postgraduate students of management, as well as those undergoing executive courses in management.
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CSS 11: Strategy.
The purpose of this paper is to clarify the role of American culture in social foresight as practiced by American futurists. It also seeks to describe how American culture…
The purpose of this paper is to clarify the role of American culture in social foresight as practiced by American futurists. It also seeks to describe how American culture has been expropriated by corporate culture, which is global. Finally, the paper seeks to depict various scenarios of the future of the USA and to consider an imperative of the futurist to reform the role of the professional futurist consultant in the capacity of social foresight that sets as its chief aim the transformation of business practice towards a sustainable, restorative economy.
The paper is a critical approach to American and corporate culture by exposing major assumptions behind business ideology and practice. It also applies the same critical approach to the way futures has been practiced within the capitalist paradigm during the past 50 years. It is a civilisational critique that also points towards an integral solution for sustainable, restorative business practice.
It was found that superficial efforts at sustainable solutions will not be enough to manage the impending collapse of industrial civilization. What is required is a wholesale transformation that is indicative of a paradigm shift towards a natural capitalism in which business practice is totally guided by sustainability and restoration of the natural systems rather than mere, narrowly focused “bottom line” ideology. It finds that social foresight can play a positive role in directing this transition and crisis of humanity.
Hopefully, the paper will contribute to the progress of futures towards a more specifically focused matter of social foresight. It should help futurists to recognize their leadership role, which should guide business entrepreneurs and social innovation towards the realization of sustainability and restoration. At the same time, it emphasizes the need to embrace rather than shun activism, to link with other progressives who seek to redefine the relationship of government and business through democratic means. The paper emphasizes the need to protect and restore a future that is being systematically undermined and destroyed.
Following a decade of economic turmoil, the climate for international business in the 1980s should be more favorable due to changes in the oil, currency, and labor markets. Those companies that recognize the growing trend toward globalization and position themselves to take advantage of it will emerge successful in the coming decade.
The goal of a good computer interface is to provide a natural language help facility that allows new users to learn about the computer, its operating system in particular, and the important packages that are available for his use. The UNIX Consultant (UC) is an intelligent natural language interface designed to allow naive users to communicate with the UNIX operating system (of A.T. and T. Bell Laboratories) in ordinary English in as painless a way as possible. UC allows the user to engage in natural language dialogues with the operating system. He can query UC about how to do things in UNIX, ask about common names, formats, receive on‐line definitions of UNIX and get help debugging problems using UNIX commands.