1. Case Name: Unity Bank- Realizing value from an M&A integration 2. Problem Statement The primary question of the case is: Unity Bank has acquired Delta to realize its dream of becoming the World No 1 provider of share registry services. The primary problem is “How to successfully integrate Unity Bank and Delta within the specified timeframe and simultaneously achieve the Target savings?” The secondary question of the case is: The integration posed multiple challenges but it was critical to infuse the integration without affecting the existing business processes of both companies. 3. Background a. Describe the acquirer company/department 1) History - Unity bank was founded in South Africa in 1982 and employed around …show more content…
The new entity could leverage the core competency and brand recognition in respective market segment. - Unity bank has a global footprint and Delta would provide the necessary opportunities in United States - The pricing offer for Delta had been properly negotiated and firm valuation was accurate - It was an ambitious acquisition for Unity bank because Delta had comparatively much bigger operation in United States but the key to this issue would lie in the integration result. ii) Software • Choosing the enterprise platform - Unity has a proven system BLAIR which could address all the business needs of UNITY but new development has to be done to incorporate the service offerings of Delta. A development cost of 100 Weeks, 30 person team at $120 per hour has to be incurred to make BLAIR serviceable to Delta clients. The Unity IT staff is well versed with BLAIR hence in house competency is not an issue. But in the long run BLAIR can be a bottleneck for UNITY as it is written in COBOL. New IT professionals having COBOL competency are hard to find as it is an obsolete language and training cost of new professionals and also the end users for DELTA would be high. - DELTA’s Leader is a new system which is not proven and had only been used for limited number of clients. But the strength of leader lies in its next generation vision
As a staff analyst, I think that there are many alternatives present which can save the Bank from a huge loss. Actually in this dispute I feel that Bank is right because they made it clear in the purchase order that the machines needs to be shipped through Yellow Freight and also paid the invoice before time as per their custom. But still the carrier was changed by Data Max without asking or informing the bank.
One of the most large scale United States Airlines since the late 1920s is the Delta Airlines Incorporation. The incorporation’s financial statements are more than $9 billion in operating income and over $40 billion in total revenue Its net income was US$ 926 million. It is also worthwhile to note that Delta Air Lines, Inc. was the most admired airline for the 5th time in the span of six years and was named Fortune's Top 50 Most Admired Companies. 2 – How Delta Airlines Compete With Other Airlines
Technological advancements, mergers and acquisitions, volatility in crude oil prices, currency depreciation, ground staff management and baggage handling are the major external factors for Delta Air Lines. The Monroe oil refinery purchased by Delta Air Lines provides an opportunity for the company to deal with the volatility in crude oil prices. Presently Delta Airline is over dependent on the North American markets, which had experienced a major hit during the recession in 2008.
For this company analysis paper, Delta Airlines has been chosen out of 100 best companies. In this paper, firstly we will talk about the background of the company. Secondly, vision and mission will be evaluated. Thirdly, competitor analysis will be carried out. Lastly, business characteristics and accomplishments will be discussed.
The report finds that Delta Airlines has successfully emerged from its bankruptcy in 2005 to report successful returns in both 2007 and 2008. With its 2008 acquisition of Northwest Airlines Delta became the world's largest airline, further improving its position in the airline industry. Despite this current positive position report also finds potential adversities
The three major challenges that arose after the merger were the following: firstly, the companies needed to integrate their flight information systems. Secondly, they needed to integrate their passenger information systems. Finally, there was a need to reconcile both airlines speedup-slowdown algorithms.
As the new century unfolded, Delta Air Lines continued exponential growth becoming one of the largest airlines in the country. A merger with Western Airlines in 1987, the acquisition of Pan Am’s transatlantic routes in 1991, and a final merger with Northwest Airlines in 2008 meant Delta now had routes all over the world. Delta like many other airlines faced very difficult times post 9/11 and during the recession. The airline made significant cost improvements across its operation and the merger with Northwest Airlines ended up pushing the airline back into profitable business.
The system of governance at United Airlines is a straightforward Bureaucratic control. At the core of their governance are principles that are the foundation for investor and shareholder respect and trust. The principles that are practiced are essential to the reputation of United as a whole and are solely focused on organizational excellence, effective operational performance, and above all, integrity. The Board of Directors and the management teams at United Airlines work collaboratively under this corporate governance and guidelines, and include the policies
Delta airline uses merger so as to be able to expend its business. In 2008 the company merged with Northwest airlines. It operates in Europe, North America and Asia/Pacific regions. Once the merger was complete, Northwest Airlines and all its constituents become wholly-owned by Delta Airlines. The merger saw to it that Delta Airlines started operating in the Northwest for FY 2008. In the period of two month that is from October of 2008 the time the merger was completed to December of 2008, the company had increased it revenues to $2 billion. Having a flexible nature, allows Delta to improve customer services, and in the long run be able to achieve its strategic objectives.
With each passing day the health care industry is experiencing an increase in participants due to its perfect competition nature. Due to this increase the industry participants, the industry has vicious competition which in effect leads to an increased in the cost of doing business. Smaller companies within the industry are hard hit by this competition due to their limited resources and therefore find it hard to remain relevant within the industry. Due to the looming threat of closure and liquidation, small companies must explore various strategies they may use to remain in operation. On the other hand large hospitals that are looking to eliminate competition and at the same time improve on their market share and in effect their revenues, merge with those that are struggling with low profitability. These mergers are beneficial to the smaller struggling companies since they provide increased savings on company overheads and availability of specialized machinery. Growth is also expected due to the increased market share as well as the good will already established by the large company. Contrary to popular opinion, mergers are not always between a large and a small company. In the healthcare industry two small companies may come together in order to pool their resources together and be in a position to compete against the large companies.
Founded in 1982 in South Africa, Unity Bank was one of the few providers of global shareholder and employee management services and other value added services. Unity held more than 60 million accounts for over 10,000 corporations across twelve countries and five continents, employing 8000 people worldwide and a market capitalization of $2 billion. The M&A integration of Delta with Unity Bank in itself was a great step for Unity Bank.
Question 1: Compare and contrast the strategic service vision of United Commercial Bank and El Banco.
The project sponsor (John Hart) had extensive industry experience and had identified the need for a corporate marketing database to target the corporate customers who brought in the majority of the revenue and profit for FNB. This new database was proposed in order to consolidate information from three different banking divisions –
With the outstanding performance through the years of UOB, its mission statement has been realistic and it certainly have helped the company to stay on track and to achieve its vision of being a premier bank, as it has eventually became the top leading bank Asia and the Asia Pacific region. The mission has greatly equipped the bank with the right attitude and goals to help achieve its vision. By being committed to providing quality products and excellent customer service, it paved the way for great excellence which is a key factor to become an outstanding bank in comparison with the other competitors.
During the celebration of Ghana’s 50th anniversary in 2007, UT won a Gold Award for contribution to the Social and Economic Development of Ghana. For two years running UT Bank was recognized as the fifth best company in the Ghana Club 100 having won the Best Non-Bank Financial Institution (2008, 2005, 2004 and 2003) by the Ghana Investment Promotion Center (GIPC) in its Club 100 rankings which represent the top 100 companies in Ghana.