Block 4

1
Block 4

• Transnational Strategies in a Legal and Financial
  Perspective

2

• Objectives
• To provide insight into the strategic,
  industrial, legal and financial considerations in
  global competition
• Focus
• Mergers and Acquisition

3
Lecturers

• John Kuada - Strategy
• George Tesar - Strategy
• Janette E. Jensen International Finance
• Henrik Harbo International Finance
• Peter Heide Jensen Int. Business Law

4
Examination - Mini Project

• Case
• Royal Greenlands Acquisition of a German
  company (1996)
• Questions covering
• Business Law
• Finance
• Strategy
• Oral examination
• Focus on Strategic considerations in Mergers and
  Acquisition

5
Definitions

• Mergers
• Assets of two firms combined and one legal entity
  formed
• Acquisition
• Takeover of the assets of one firm by another
• Previous owners paid off

6
Types

• Horizontal MA
• Between Competing firms in the same industry
• Vertical MA
• Between buyer-seller, client-supplier and value
  chain linkages
• Conglomerate MA
• between firms in unrelated businesses
• Friendly vs. hostile takeovers

7
Motives

• Expansion
• Economies of Scale
• Economies of Scope
• Resource acquisition
• Exploitation of undervalued resources

8
3 Key Problems

• Ex ante Valuation
• Tangible vs. intangible assets
• Changes within the industry
• Risks
• Goodwill may disappear after takeover
• Synergy may disappear if only part of the firm is
  purchased
• Post-Acquisition Integration

9
Key Dimensions in Acquisition Integration(Haspesl
agh-Jemison)

• Strategic interdependence need
• Organisational autonomy need

10
Approaches to Acquisition Integration(Haspeslagh-
Jemison
11
Two Other Dimension

• Organisational Mindset
• Ethnocentric Polycentric dispositions
• Leadership Styles
• Authoritarian (autocratic) - Participatory

12
Organisational mindset
Ethno-centric
Expatriates Leadership Style
13
Physical and Mental Presence of Expatriates
14
Coping Strategies

• unequivocal allegiance
• strained allegiance
• disguised non-allegiance
• open non-allegiance

15
Research Implications

• Organisational mindset and expatriate choice
• Home country cultural impact on organisational
  mindset
• Comparative industry studies
• Empirical studies about coping strategies of
  employees in acquired companies
• Others?