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Scope Of Mergers And Acquisitions.

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Mergers & Acquisition have gained popularity throughout the world in the recent times. They have become popular due to globalization, liberalization, technological developments & intensely competitive business environment. Mergers and acquisition are a big part of the corporate finance world. This process is extensively used for restructuring the business organization. In India, the concept of mergers and acquisition was initiated by the government bodies. The Indian economic reform since 1991 has opened up a whole lot of challenges both in the domestic and international spheres. The increased competition in the global market has prompted the Indian companies to go for mergers and acquisitions as an important strategic choice.

The trends of mergers and acquisitions in India have changed over the years. The immediate effects of the mergers and acquisitions have also been diverse across the various sectors of the Indian economy. Mergers and Acquisitions (M&A) have been around for a long time and has experienced waves of popularity during these times and they are very much an important part of todays business world. They have also become increasingly international which can be due to the rising global competition. The popularity of cross-border M&As makes it important to look at them from an international perspective

As a subject in PGDM one studies the aspect of valuation in Mergers i.e. how a company decides about the amount that has to be paid for acquiring. Basically M&A emerged as a strategic issue but now a days, valuation aspect has gained more popularity.There are thousands of investment bankers who are daily engaged in valuations and in the coming years this trend is expected more in Banking sector as well as other sectors too. So one should study this subject in PGDM as well as PGDM (BFS).One will find this subject very interesting as it involves knowledge from every field.

They are suitable for those studying advanced undergraduate and MBA courses in top MBA colleges, industrial organizations, finance, business strategy, and corporate governance, as well as those preparing for exams set by professional bodies. Mergers & Acquisitions focuses on how to value and analyze opportunities in this market; how to design and value consideration and deal protection measures; how to initiate and defend against hostile bids; and how to integrate businesses after a deal is struck.

The recent acquisition of Zain by Bharti airtel is a well known example of this subject as once you start reading about the deal your interest keeps on increasing about the day to day news because people attached with this field have a zeal to know what will happen next, whether this deal will show positive signs or negative signs for the stock market. Mergers & Acquisitions teaches both qualitative and quantitative analysis: most cases require a balance of financial techniques and business judgment grounded in institutional facts. The course seeks to promote good judgment in the evaluation, structuring and management of mergers and acquisitions.

Importance Of Business Consultancy Services

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The consultancy services are increasing day by day for various industries. The consultancy is a knowledge dispersion process through which any individual or a company out sources its information. The business consultancy services include updating the client and customers with the new emerging trend in their respective business. The strategy is based on market research analysis. The market research analysis includes studying the business in the global markets and the competitions for the business.

The consultancy services include provision of strategic tools for the development and expansion of the business. The business consultancy services provide the competitors an extra edge in the competitive markets. Consultancy services are the problem solving approach where the service provider focuses on solutions rather than the problems. The service in consultation with the staff and the management works on the core domain of the problem. Hence this evaluation results in diverse solutions and better decision making process. The consultancy services works on the risks assessments and provides appropriate measure to avoid risks and to handle risks if encountered.

The consultancy services are well known for their planning strategy on the basis of the resource allocation, scheduling of the various projects and termination of the project. The consultancy services evaluate the various projects in terms of their life cycle and utilization of resources and providing high quality outputs to the organization. For an effective functioning of any organization it requires effective and strategic policies based on the proper evaluation of the business. The consultancy services provide an effective medium to review these strategies and policies of the business. The company is assured the desired results by the predictions through such consultancy services. The services provider works as a research analyst in reviewing the pros and cons of the business.

The business is not only measured on the sales and pricing strategy but also on the impact it creates in the minds of its customers. The surveys include the reviews on the operations of the business. It also requires the effective use of the human resources. The key to any business is its financial growth and stability. The consultancy services are beneficial in providing this business reviews. The policy also includes the measure of the business plans. The business is evaluated by the professional who are engaged in these consultancy firms. These are mostly the management graduates who work on the various policies of running a business effectively. Consultancy services aims at securing the place for the business in the competitive global market place. Hence a company must select an appropriate consultancy firm as the policies suggested may play a prominent role in shaping the business. For the evaluation criteria the company must review the past success of such consultancy services and the key clients of such services. This assures the company about the service providers. This also helps in establishing trust and faith about the service provider. Hence a company must select its consultancy services based on its objectives and the services including value added services provided by the service provider.

Is Mlm Downline Stacking Good For Business

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Many types of MLM opportunities require you to build a business before they promote you. I would like to address these types of business and how a strategy of stacking can be good and bad.

The main purpose of building a network of people below you is to build a residual monthly income. In doing this you need distributors below you who push whatever your company is selling. Every time there is a sale you get a small percentage of that sale usually depending on how far away that distributor is in relation to you. This is what network marketers want in a healthy MLM downline.

So then the issue comes up: Do you try and promote as fast as you can or do you try to build as wide as you can?

Stacking
You will be able to promote yourself easier by placing key distributors to where they are needed. You don’t have to guess. There is less random growth and you are able to grow deeper. Some companies pay your more residual the further away the distributor is to you so going deeper is better. This is only a good option if this actually helps you to promote.

Cons: You will lose the direct commissions as you will be giving them to the distributor instead of you. Some companies have less residual the further you are from you. Building deep cripples the width of your organization and you will have less people in certain high dollar residual levels.

In the long run you would have gotten less by having a tall organization than a wide one. Many companies cut you off after a certain number of levels. If you build deep you run the risk of having new distributors placed outside of the levels you can collect from and essentially lost that residual for that distributor. If you would have placed that distributor directly under you then the following distributors will not be lost in your organization.

EX: You got a power distributor (leader). Your company cuts off residuals past level 5. You want to promote and you place this leader under one of your level 3 leader so that you can help them while helping you promote. The leader is now in your level 4 and giving you some good residual. This level 4 leader then starts to build their business and they then sponsor 3 which are your level 5. These level 5 distributors then get 2 distributors each. These 6 new distributors are now in your level 6 and you get nothing form them.

If you would have placed that leader under you in level 1 then that leader would have gotten you three level 2 distributors. Those three level 2 distributors would have then gotten you six level 4. Since leaders get many distributors over their life time and down their downline it is risky to place a leader too far down the chain. since teams generally grow wide and continue the further they go then building too far down in stacking could hurt you.

Or course this all depends if the company cuts residuals after a certain level and if you get more or less depending on where they are in relation to you. Over time your organization will eventually go down very far so if you are in a plan that cuts off levels very quickly or has decreasing residual payouts the further you go then that might be an indication that the compensation plan is lacking.

If the higher residual is paid higher when closer in level to you then that denotes that you must do more work to get higher residuals. If the residuals are higher the further away they are then that denotes that the company wants you to have a deeper and wider team. Which one takes more work? One that relies solely on you get the residual or one that depends on the organization below you to get you what you want.

If you train properly and start turning distributors into leaders then your organization will take a life of it’s own and people will start jumping on in waves. Marketing multilevel business can be replicated if the MLM downline can repeat the traffic and conversions over time. If every one of your distributors built their organization by stacking then you will have a very tall but narrow organization. That will not build you a very large monthly residual.

You are a seed. Build it wide and let it grow like a root system. The wider it gets the more you profit, but at the expense of what you could have helped your own downline grow theirs. Regardless of how it’s build you will need a lot of targeted traffic and will need a lot of MLM leads to keep the business running at a high gear.

It really depends on how your compensation is setup and your team’s MLM recruiting efforts

Pest And Its Concepts

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The concept of PEST analysis seems quite simple. Indeed, there are 4 components of PEST analysis such as political, economic, social and technological factors. It is difficult to say which factor plays the most important role in PEST analysis. It depends on the company, its mission and goals. It for one company technological factors play the most crucial role, the other company should pay the most attention to political changes and economic factors. It also depends on where the company wants to be in near and long term future. This is to say that PEST analysis is very often combined with strategic planning. However are, strategy implies both internal and external factors while pest analysis focuses mostly on external factors and company position and mission in external environments. Now lets analyze concepts of PEST analysis and its key components.

Every company, whether it is small business or a large corporation, is registered or operating in a certain country. Sure, the company may be registered in some exotic islands, while it is actually operating in a European country. Anyway, every company should take into consideration political factors. Why politics? How does it influence business environment? Politics seems to be only about people making statements and declaration which we see mostly on TV. However, every word articulated by a prominent politician may have very serious consequences for national and in some cases even international economy. Thats why analytical departments of major companies analyze statements of political leaders and their possible consequences for their particular business. Those who ignore and refuse to analyze political developments and news may pay a high price, because political constituent is very important in strategic planning. Political instability they result in economic changes and thus a chosen strategy w
ill simply not work. This argument takes us to economic factors.

That should be mentioned that national economy directly influences customer purchasing power. People must have money to be able to pay for services or products. Thats why, before launch of the new product or service offering, the company needs to analyze economic conditions in the country. There are various indicators and indexes that evaluate national economys well being. In the economy is on the rise, people and businesses have money, access to cheap loans and financial programs, and thus, they can afford paying reasonable prices for products and services. Armed with figures it will be easier to design strategic plans pay on general economic situation in the country. Believe it or not, but it is possible to make very attractive offers even in a post crisis economy.

As to the social aspect, it should be noted that society forms the face of business, as business is an inseparable part of the society. In order to be successful it is really necessary to evaluate and assess social trends in terms of generating profits for the company. Were living in the age of social media so, it has become easier to keep track of all social trends and tendencies. It goes without saying that no progress is possible without an effective use of latest technologies. This statement is even not disputed.

Why Sun Tzu Strategy Of War Is Applicable In Today’s World

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The book The Art of war written by the Chinese military Sun Tzu is one of the most famous book of war. This war book was written by Sun Tzu after winning the years of battle for the control of China. Most of the military readers found a holistic approach on Sun Tzu strategy of war. In this book, he explained the strategy required to win a war. Soldiers and politician are inspired by this in achieving victory. People all over the world and a number of growing business organization are applying Sun Tzu’s Art of war strategies in life, business, politics and worldwide.

There are six principles of Sun Tzu war strategy. They are as follows:

1. The first principle is winning all without fighting that is achieving the objective without destroying it. This principle has able the ruler of the states-nations to create a stable environment for peaceful survival, become stable, expand, dominate their neighbors, and ultimately prosper for hundreds of years.

2. The second principle is avoiding strength, attack weakness means striking where the enemy is most vulnerable. This principle discuss on how to win All-under-Heaven intact.

3. The third principle is Deception and Foreknowledge means Winning the Information War. This principle discusses Speed needed in war. Take advantage of the enemy’s unpreparedness; travelling unexpected routes and strike where no precautions has taken. Speed is the essence of war.

4. The fourth principle is Speed and Preparation that is Moving Swiftly to Overcome Resistance. Wise and careful planning are the only solution to defeat the enemy easily. Different tactics should be used to deceive the enemy.

5. The fifth principle is Shaping the Enemy and Preparing the Battlefield. A battle field can be prepared after shaping the enemy.

6. The sixth principle is Character-Based Leadership. Leading by Example.

Sun Tzu strategy of war created the most enduring umpire in the history of China. When this classic book was translated for westerners, a significant impact has been brought to the western leaders on how to conquer the nations. The success of war strategy knowledge was soon spread to the ancient military leaders and gradually to present world in business and politics. The war strategies of Sun Tzu is quite helpful in achieving the aim and objectives of life. People who read this classic book have influence lots. The inspired people have applied the strategy in real life and have been able to built the largest, successful and powerful company of the world.