Advances In Management

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Advances In Management

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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