Vol. 6(10) October 2013
The Value Chain and Value Creation
Moryosseff Iris Gertner
A company must adopt a set of competitive advantages
sustainable and essential for the customers, satisfying their needs so that that
they are willing to pay for the value in order to compete effectively in the global
environment9. Value chain analysis is a powerful instrument for the company to identify
its core activities as having the potential to accomplish competitive priority and
create superior performances. The value chain has been used as a powerful tool for
management as it consists of the activities the firm uses to generate value and
its margin.
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Self-Interest, Egoism and Business
Machan Tibor R.
Among the various troublesome features of business is
the fact that economists, many of whom study it as a social science, believe its
functions based on self-interest.
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Core Competencies for Business Excellence
Gupta R. K.
This paper reports a part of the research conducted in
sample of selected listed Indian companies under doctoral research work on “Factors
determining excellence in Business-A study of selected listed companies in India”.
Concept of Core competencies since its first proposition by Prof Gary Hamel in 1990
has been subject of intense study and interest for firms to deliver sustainable
competitive advantage. However, there has been low response about the core competencies
in our sample companies here in India. The concept of core competency may well become
a trap of false security unless understood in right context. The core competencies
have to be viewed in context of future competition and to be well integrated with
product-market strategy. The paper concludes that right bundle of core competencies
do act as factor for business excellence.
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Innovative HR Strategies for Post Merger Performance
– Issues and Concerns
Chakravorty Jayesh N.
The importance of human element in enhancing productivity
has been recognized since a very long time. Physical and financial resources cannot
improve efficiency of an organization by themselves. Innumerable attempts have been
made to find out a satisfactory answer to the “people question”. Mergers and acquisitions
are meant to create synergy for businesses with an objective to ensure high growth
potential. Although acquisitions have become a very popular route to achieve corporate
transformation and growth, experience reveals that they are not very successful.
Their success inevitably calls for the process of readjustment and change in human
resource initiatives. Acquisitions have a high failure rate – nearly half of all
acquisitions are rated as being unsatisfactory by managers of acquiring firms. Poor
post-merger integration is among the key reasons for these failures. Success in
mergers largely depends on how well the people issues have been addressed, handled
and resolved in terms of restructuring, downsizing, harmonization of remuneration
practices, psychological and physiological plans. Most acquisition guidelines overlook
the feasibility and cost of actual integrating the potential target based on organizational
fit. A failure to address these issues in a merger and acquisition affects the new
organization negatively.
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Swarm Behaviour – An Intelligent Tool in tackling
Challenges
Sen Nandita
“TEAM = Together Everyone Achieves More.” The key elements
in the art of working together are how to deal with change, how to deal with conflict
and how to reach our potential in a collective coordinated way. A swarm is a collection
behavior of moving together in same direction. It involves process of mutual trust,
communication and interaction. It shows a path that how the team can solve the complex
problem through the collective behavior. Natural examples of Swarm Intelligence
SI include ant colonies, bird flocking, animal herding, bacterial growth and fish
schooling. Swarms can achieve things that an individual cannot. It is the natural
way of dealing with complex problem that can be solved by collective behavior.
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Case Study: Ownership Decisions, Resource-sharing
and Performance in International Joint Ventures
Kwon Yung-Chul
The purpose of this study is to explore the attribute
of international joint ventures (IJVs) from the resource-based perspective. In this
regard, we introduced the concept of resource contribution, resource complementarity
and resource-sharing. On the basis of an analysis of 94 samples of IJVs formed between
Korean firms and foreign firms from the U.S., Western Europe and Japan, the resource
contribution and complementarity were found to be applicable to explain a systematic
pattern with respect to IJV equity ownership decisions. In addition, it was shown
that knowledge-sharing between the partner firms plays an important role in IJV
performance. These findings contribute to a resource-based perspective of IJVs in
development
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Case Study: Performance Evaluation of Urban Co-Operative
Banks (UCBs) in India
Ravindra P. S.*, Narayana Murthy O. and Trinadha Rao Ch.
Over recent years, the financial health of the urban
co-operative sector has shown a remarkable improvement. In 2011-12, the sector showed
an increased return on assets and a further fall in the ratio of Non-Performing
Assets (NPAs). As per the new CAMELS rating model, 61 per cent of the UCBs, accounting
for about 78 per cent of the total banking business of the UCB sector, had ratings
of ‘A’ and ‘B’, indicating the good financial health of this sector. The Co-operative
movement in India was started a century ago with the enactment of Co-operative Society
Act in 1904. The Co-operative structure in India can broadly be divided into two
segments. The urban areas are served by Urban Co-operative Banks (UCBs), rural co-operatives
operate in the rural parts of the country. The banking related activities of UCBs
are governed by the Reserve Bank of India(RBI),whereas the registration and management
related activities are governed by the Registrar of Co-operative Societies(RCS)
in case of UCBs operation in single state and Central RCS in case of multi-state
UCBs. Keeping the above facts the present paper evaluates the performance of UCBs
with absolute financial figures.
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Case Study: Evaluation of Operational Performance
of Trade Unions in TANCEM –A Study
Priya R.
The concept of trade union was evolved for the purpose
of bridging the gap between the employers and employees of an organization. Thereafter
number of amendments took place on its originality, however the basic idea and the
theme of the concept never changed. The significance and the role of trade unions
are very important in all kinds of organizations especially for public limited companies.
This study is indented to evaluate the performance of trade unions in TANCEM, Ariyalur.
After taking all due analysis about the collected data, the outcomes revealed that
the overall performance of the trade unions which are functioning in TANCEM is in
an appreciable mode. The trade unions are discharging their functions well.
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Case Study: After-market Performance of ADR IPOs:
The Role of Inter-Tranche Allocation, Use of Proceeds and Corporate Control
Demissew Diro Ejara
American Depositary Receipts (ADRs) represent foreign
company shares that trade in US stock exchanges. There are thousands of ADRs listed
on US stock exchanges. Some of them represent shares of seasoned companies while
others are initial public offerings (IPOs). The purpose of this study is to analyze
the after-market performance of these ADR IPOs. The main emphasis is on the impact
of the volume of shares allocated to the US markets, the use of the IPO proceeds
and the corporate governance structure of the ADR issuer on the performance over
several years after the IPO. The results show that while allocation, use of proceeds
and corporate control have minimal impact on performance, other fundamental factors
such as country of origin, industry and risk play more prominent role.
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Case Study: Financial Performance Analysis in Banking
Sector – A Pre and Post Merger Perspective
Sai V. Radha Naga and Sultana Syed Tabassum*
The banking sector is one of the most important instrument
of the national development, occupies a unique place in a nation’s economy. Economic
development of the country is evident through the soundness of the banking system.
Deregulation in the financial market, market liberalization, economic reforms have
witnessed astounding changes in banking industry leading to incredible competitiveness
and technological sophistication leading to a new era in banking. Since then, every
bank is relentless in their endeavor to become financial strong and operationally
efficient and effective. The paper evaluates the performance of the selected two
banks based on the financial ratios from the perspective of pre and post merger.
To analyze the impact of merger paired t-test was applied to the various financial
ratios for before and after merger data. Based on the analysis of Indian Overseas
Bank data, it can be concluded that Net profit margin, Operating profit margin,
Return on capital employed, Return on equity and Debt-Equity ratio, there is significant
difference but no significant difference with respect to Gross profit margin. Based
on the analysis of HDFC bank data, it can be concluded that Net profit margin, Operating
profit margin, Return on capital employed, Return on equity and Debt-Equity ratio,
there is no significant difference in these ratios before and after merger. But
there is significant difference with respect to Gross profit margin.
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