• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Parenting theory.

Extracts from this document...

Introduction

Parenting theory From Harvard University Express. http://www.google.com.au/search?q=cache:annYRlB09n4J:www.fihrd.or.th/lf1999/panel1.html+%22what+is+a+good+society%22+%2B+%22good+society+is%22%22&hl=en&ie=UTF-8 Parent org is an intermediary between investors and businesses. Parenting org will try to answer 2 question: which business should we own? What parenting approach will get the best performance from those busineses? Instead of looking at how businesses relate to one another, a parent organization should look at how well its skill fit its businesses' needs and whether owning them creates or destroy value. Parenting theory suggest that most CEO should concern with two crucial questions: what business should this company, rather than rival, own and why? And What org structure. Management process and philosophy will foster superior performance from its businesses? The best parent companies create more value in their businesses than rivals would. Multi business bring together under a parent org businesses that could potentially be independent. Such parent company can justify themselves economically only of their influence creates value. For example: The parent org can improve business' plan and budget , promote better linkages among them, provide especially competent central function or make wise choices in its own acquisitions , divestment and new ventures. ...read more.

Middle

In both cases, Lloyds TSB was able to sell those products to its dramatically larger retail customer base, thus generating more revenue than the three entities could have done individually. Similarly, having acquired Duracell for a 20% premium, Gillette was confirmed in its expectation that selling Duracell batteries through Gillette's existing channels for personal care products would increase sales, particularly internationally. Gillette sold Duracell products in 25 new markets in the first year after the acquisition and substantially increased sales in established international markets. In other instances, a target company's distribution channel can be used to escalate the sales of the acquiring company's product. That occurred at Gillette when it acquired Parker Pen. In calculating what it could pay, Gillette estimated that it would be able to get an additional $25 million in sales for its own Waterman pens by taking advantage of Parker's distribution channels. A final kind of revenue enhancement occurs when the bigger, post-acquisition company gains sufficient critical mass to attract revenue neither company would have been able to realize alone. Consider what happened when ABN and AMRO merged to form ABN AMRO, the large Dutch bank. ...read more.

Conclusion

When the Credit Suisse Group merged with Winterthur, 10% of the forecasted synergies came from reducing funding costs through optimized capital management. Here's another genuine financial-engineering synergy: a transaction may allow a company to refinance the target's debt at the acquirer's more favourable borrowing rate without affecting the acquirer's credit rating. That is especially likely to happen in the financial services sector because those companies are big and their risk is diversified. TAX BENEFITS Tax considerations are often a barrier that must be overcome to justify a deal, a fact that makes tax-related synergies very difficult to assess. It's useful to distinguish between tax "structuring," which makes the deal possible, and tax "engineering" (also called tax planning), which ensures that the overall tax rate of the combined company is equal to or lower than the blended tax rates of the two companies before the deal. Regulators often believe that companies using perfectly legitimate structuring and engineering techniques to avoid incurring additional costs are simply taking advantage of loopholes. Thus companies are not anxious to disclose any clever techniques they may have used. The goal of tax structuring is to avoid as many onetime tax costs as possible. Those costs may include capital and transfer duties, as well as change-of-ownership provisions that can trigger capital gains or prevent tax losses from being carried forward. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Accounting & Financial Management section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Accounting & Financial Management essays

  1. Finance And Cas Flow

    Public limited companies have shareholders like a private limited company but the difference in ownership is that any individual can buy shares on the stock exchange. There for any one can have ownership of the business even if they have no experience in running one, this may be an disadvantage

  2. Sources Of Finance

    the business more money in the long term if the asset is borrowed for use in the every day activities of the business; this means that the asset will be continuously hired as it is an essential part of making the businesses a success by operating effectively.

  1. Free essay

    `Accounting as a discipline has no theory`. Critically evaluate this statement and provide examples ...

    The true and fair view is produced to make information true and fair but has many problems in interpreting it. Epistemology regards the theory of knowledge. "Knowledge is used to construct reality" so it is important to see where knowledge is derived from.

  2. A2 Business CourseWork

    All of these initiatives and goals clearly show their long and short-term dedication to reducing their carbon footprint. Stakeholders: Stakeholders are the people who take an active interest in a business for whatever reason. They will all want different things from the business which they will conceive to be important

  1. In this assignment I will be explaining in detail the importance of cash flow, ...

    669.0 647.0 Dividends -240.0 -222.0 Retained profit 427.0 429.0 Company: Cadbury Schweppes Consolidated Balance Sheet Fixed assets Intangible Assets 3919.0 3721.0 Tangible Assets 1896.0 1764.0 Total Fixed Assets 5815.0 5485.0 Current assets Stock 825.0 810.0 Debtors (Money we are due)

  2. The purpose of this paper is to analyze the decision of pursuing an MBA ...

    present value terms, once the financing charges are met. "Khan, M.Y. (1993). Theory & Problems in Financial Management. Boston: McGraw Hill Higher Education." The profitability of project is observed herein from the economic flow measured by fixed prices (in order to avoid the impact of inflation within the project duration).

  1. Sources of Finance

    (Sources of Reference: http://www.freewarefiles.com/techfi/Advantages_of_Equity_Financing.html) Pledge No Assets: Corporation does not have to pledge their assets as collateral to obtain equity investments. Availability of Cash: Business will have more cash available due to no debt payments have to be made. (Source of reference: http://forums.forbes.com/forbes/board/message?board.id=entreforum&message.id=399)

  2. Mergers & Acquisitions

    Customer tastes and preferences also change from time to time. There is no point in making a deal and acquiring an entity which deals in the product for which market is low and there is no demand. 3. Technology Development - With the world growing with technology, there might be decrease and increase in the demand of a product.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work