Case Study on Nol

1927 Words8 Pages
Introduction In November 1997, the acquisition of APL by NOL was successful. As compared to the larger US based APL; NOL was a small Singapore firm. Through this acquisition, it appeared that NOL was ready to become an industry leader in the shipping industry. Thus this acquisition is a strategy through which NOL buys a controlling, 100 per cent, interest in APL with the intent of making the acquired firm a subsidiary business within its portfolio. Thus APL became a wholly owned subsidiary of Singapore based NOL, a global transportation and logistics company engaged in shipping and related businesses. Below is the study of the problems and strategies that NOL faced or is facing during the acquisition and integration of APL.…show more content…
Financial controls are largely objective criteria used to measure the firm’s performance against previously established quantitative standards. Accounting based measures such as return on investments (ROI) and return on assets (ROA) as well as market based measures such as economic value added are examples of financial controls. Multidivisional Structure With continuing growth and success, firms often consider greater levels of diversification. Successfully using a diversification strategy requires analyzing substantially greater amount of data and information when the firm offers the same products in different markets (markets or geographic diversification) or offers different products in several markets ( product diversification). In addition, trying to manage high levels of diversification through functional structures creates serious coo-ordination and control problems. In this case of NOL acquiring APL, the multi-divisional (M-form) structure consists of operating divisions, each representing a separate business or profit center in which the top corporate officer delegates responsibilities for day to day operations and business unit strategy to division manager. The M form is thought to have three major benefits (1) it enables corporate offices to more accurately monitor the performances of each business which simplifies the control
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