Consolidation Into The Container Shipping Industry

This consolidation move, according to the company representatives, will help the company gain competitiveness to face the government attempt

A lot of times, company merge to become more competitive . The consolidation of these

Mergers and acquisitions occur because directors see benefits that could come from combining two or more businesses, which could improve the

Background: In 1969 the three young shipping executives- Adrian Dalsey, Larry Hillblom and Robert Lynn found DHL. The idea of DHL arises from need to increase the turnaround speed for ships at ports, if the

There are many companies and organizations that work in a similar manner and in a similar industry. Given the opportunity, merging alike organizations could lead to a prosperous economic effect. Without mergers many of the most well known brands and companies won’t be where they are today.

One major objective of mergers is to be able to reduce or fully eliminate the weaknesses that may exit in

Why companies consider merger to be important for their business success is not far fetch, to increase market share, economies of scale, profit from R&D, benefits on account of tax shields and reduction of competition. However, the merger also has some associated problems such as increased business complexity, clash of corporate culture and sometime employee may be resistance to

Several aspects of the container market has been broadly discussed in several studies. To gain insight in such a broad subject as the container market, the subject container market is divided in some important parts:

Shipping industry is a huge field that widely expand all over the world. “Almost all international trade in goods is transported by sea. Ocean shipping plays a central and essential role in the world economy and in world trade. In recent years, international trade has become a dominant factor in economic growth for most industrialized countries. Many newly industrialized countries have become so through major trade growth.” (Fearnleys, 1982) However, without our noticed, the increase the technology, the larger the business, the more the problems will arise. As we know, sometimes there is an article about damaged cargoes, ships on fire, the ship was attacked by pirates and etc. When refer back to the main issues in the case study, there are

A merger is said to occur when at least two organizations consent to consolidate, bringing about another element or with the subsequent firm keeping up the character of the gaining organization. Most economies forestall mergers between straightforwardly contending firms. The method of reasoning is to counteract monopolistic economic situations where the buyer does not have any decision aside from only one merchant. Affirmations of monopolistic conduct have tormented Microsoft's operations in Europe.

This past June Forbes magazine announced that 2016 would be the year of the mergers and acquisition. In order for organization’s to continue to compete in the global economy, combining organizations provides a deeper market penetration. Within hours of a merger announcement stocks tend to soar through the roof, serving as proof that Wall Street investors like mergers and acquisition. However, the decision of making investors happy can result in a pitfall for many organizations. A recent study conducted by KPMG revealed that 83% of mergers fail. For instance EBay’s merger with Skype failed because of technical integration, Wendy’s and Arby failed because of Arbys lack of international exposure, and Chrysler failed because of cultural differences. Although the organizations failed for different reasons, the common trend is not having a good integration plan. The integration plan should include a clear strategy that combines the two cultures and uses IT frameworks to facilitate it. My organization (Starwood Hotels & Resorts Worldwide Inc.) is currently going through a merger with Marriott International Inc. I am beginning to see the same trends mentioned above, happening in our organization (pre-merger). During merger and acquisitions high valued information is exchanged and tough decisions are made. Therefore, properly managing information pre and post-merger will add value to the combined organizations overall success. However in order for an organization to

Today’s business world hosts a phenomenon, a way to expand business activities by consolidating or buying another company, so called Mergers or Acquisitions (M&A’s). M&A’s is a corporate strategy that was introduced in the 1960s. It has experienced ‘waves’ of popularity and success while at the same time suffered criticism due to numerous failures. In today 's global, competitive environment, mergers are sometimes the only means for long-term survival. Mergers can be categorized as either horizontal, vertical or conglomerate. They also exhibit other characteristics, for example, they can be complimentary or supplementary in nature.

“Mergers or consolidations can be in a companys interest in order to take advantage of more efficient manufacturing plants and close inefficient ones or quickly expand a firms product lines by acquiring market share in a mature domestic market”

The transportation and logistics industry is one of the key components of modern life. It provides the framework through which every raw material and finished consumer good is moved through the supply chain into the hands of consumers. This industry is generally taken for granted by consumers. When consumers do think about the industry it is thought of in terms of unchanging and stagnate transportation modes. This vision of the industry is not an accurate reflection of the reality of modern transportation industry. During the last several decades the technological innovations that have changed the face of modern life, have also had far reaching effects on the transportation industry. The pressures driving innovation in the industry

According to Waters (2010) water transport has not been used to it’s full potential therefore there has been a decline in sea transport, this is due to the lack of proper terminals. But according to Harrison & Fichtinger (2013) containerised ocean transport has become the lifeline of nearly all global supply chain, because of the increased amount of global processes, outsourcing and offshoring. Mason & Nair (2013) states that today, there are more than 80% of world trade by sea, such as raw materials and manufacturing outputs are carried inter-regionally around the globe.