The last post: Twelve revision questions

Clearly it is impossible to know what the examiners may ask you on the BUSS4 research topic (unless you are the person who sets the paper!). However, using some of Helen Coupland-Smith's resources and some of my own, I have put together twelve exam-style revision questions (two per bullet point). As part of your revision it would be worth planning how you would respond to these questions.

1.       The motives for takeovers and mergers and how these link with corporate strategy

With reference to the item on Kraft and your own research, to what extent do you think that a corporate strategy of creating synergies is the main motive for takeovers?

With reference to the item on RBS and your own research, to what extent do you think that the personal motives and ambitions of leaders are a main motive for takeovers?  

2.       The problems of takeovers and mergers including difficulties integrating businesses successfully

With reference to the item on JLR/Tata and your own research, to what extent do you think that culture is the main reason for the success or failure of takeovers and mergers?                      

With reference to the item on Lloyds/HBOS and your own research to what extent do you think the practical difficulties of combining different operating systems is the key problem to be overcome when firms integrate?

3.       The factors influencing the success of takeovers and mergers

With reference to the item on BA/Iberia and your own research, to what extent do you think that leadership is the main factor in influencing the success of takeovers and mergers?       

With reference to the item on Kraft/Cadbury and your own research to what extent do you think that the ability to achieve synergies is the key factor influencing the success of takeovers and mergers

4.       The impact of takeovers and mergers on the performance of the businesses involved

With reference to the item on Kraft/RBS/Iberia/JLR (take your pick!) and your own research, to what extent do you think that financial performance is the only important factor in judging the success of a takeover or merger?                   

With reference to the item on Lloyds/HBOS and your own research to what extent do you think that you should judge the success/failure of takeovers and mergers over a period of 5-10 years, rather than being over-concerned with inevitable short-term difficulties?

5.       The impact on, and reaction of, stakeholders to takeovers and mergers

With reference to the item on the BA/Iberia merger and your own research, to what extent do you think that the integration of two or more firms can have a positive impact on all stakeholders?              

With reference to the item on Glencore/Xstrata and your own research to what extent do you believe shareholders are the most important stakeholder group to keep onside when two firms are seeking to merge

6. The reasons why governments might support or intervene in takeovers and mergers.

With reference to the item on foreign takeovers (eg Kraft/Cadbury, JLR/Tata) and your own research, to what extent do you think that the government should intervene to restrict the foreign takeovers of UK businesses?

With reference to the item on the Airline Industry and your own research, to what extent do you think that governments should influence the degree of competition caused by takeovers and mergers within industries?

This is my final post on this blog this year. Any additional help you need please contact me via e mail or in person in the department. Best of luck in the BUSS4 exam - I believe you will do well.

GLW

Big Bucks for Big Mick!

The long running Xstrata / Glencore saga was in the news again a few days ago for the size of the financial package that Mick Davis (Xstrata CEO) is being offered . He has been offered bonuses worth £30 million just to stay when the two companies merge! Other senior managers at the company are also being offered attractive financial packages to encourage them to stay. You can read about it in this report from the Metro newspaper:

http://www.metro.co.uk/news/900867-mining-boss-of-xstrata-offered-30m-to-stay-on-after-glencore-takeover

This issue fits nicely with bullet point 5 on the impact of mergers on stakeholders (remember …………the Xstrata shareholders have already made protests at the perceived undervaluing of Xstrata). If you were to use this example in an essay you could contrast the impact of the merger on one group of stakeholders (the 172 senior managers in Glencore/Xstratsa being offered retention deals) to the response of the shareholders who feel ripped off. In these times of recession it is becoming more common for shareholders to speak out when executive pay appears excessive, particularly if company performance does not seem to justify high rewards.