Mergers and Acquisitions: Indian Banking Consolidation

Mergers and Acquisitions: Indian Banking Consolidation Globally it has been found that the mergers and acquisition have become one of the major ways to corporate restructuring which has also struck the financial services industry which has experienced merger waves leading to the emergence of huge banks and financial institutions. The main reason for mergers is intense competition among the companies in the same industry which put focus on economies of scale, efficiency in cost and profitability. Some other factors leading to the mergers is the too big to fail principle followed by the authorities. In few countries like Germany, weak banks were forcefully merged to avoid the problem financial distress arising out of bad loans and erosion of capital funds. Several academic studies have analyzed merger related gains in banking and these studies have adopted two approaches. The first approach deals with evaluating the long term performance of the merger by analyzing the accounting information such as return on assets, operating costs and eff iciency ratios. A mergers is considered to have led to improved performance if the the change in the accounting based performance is superior to the changes in the performance of the comparable banks that were not involved in the merger activity during that period. Another approach is to analyze the gains in stock price of the bidder and the target company around the announcement of the merger. In this approach the merger is assumed to create value if the combined value of the bidder and target banks increase on the announcement of the merger and the consequent and the stock prices reflect the potential value of the acquiring banks. The objective of this paper is to present a panoramic view of merger trends in India and to ascertain two important perceptions of stake-holders, shareholders and managers and to discuss dilemmas and other issues of this topic of Indian banking. Review of Literature for impact of mergers The two important issues which are examined by various academic studies relating to bank mergers are: impact of mergers on the operating performance and efficiency of the banks Impact of mergers on the market value of the equity of both bidder and the target banks. Cornett and Tehranian (1992) and Spindit and Tarhan (1992) provided evidence for increase in post-merger operating performance. However the studies of Berger and Humphrey (1992), Piloff (1996) and Berger (1997) did not find any evidence in increase in post-merger operating performance. Berger and Humphrey (1994) also reported that most of the studies that examined pre-merger and post-merger financial ratios found no impact on operating cost and profit ratios. The reasons for mixed evidence are: lag between completion of merger process and the realization of benefits of mergers, sample selection and the methods adopted in the financing of mergers. Further, the financial ratios may be misleading indicators of performance because they do not take into account for product mix or input prices. On the other hand researches may also could have confused scale and scope efficiency gains with what is known as X-efficiency gains. Recent studies have explicitly employed frontier X-efficiency met hods to identify the X-efficiency benefits of bank mergers. Few studies have also analyzed the potential benefits and scale economies of mergers. Landerman (2000) explored diversification benefits to be had from banks merging with non banking financial service firms. Simulated mergers of US banks and non-bank financial service firms demonstrated that diversification of banks into insurance business and securities brokerage is optimal for reducing the probability of bankruptcy for bank holding companies. Wheelock and Wilson (2004) found that expected merger activity in US banking industry is positively related to management rating, size of the bank, competitive position and geographical location of banks and is negatively related to market concentration. The second issue determined was the analysis of merger gains in terms of the gains in stock price performance of the bidder and the target banks on announcement of merger. In this case a merger is expected to create value only if the combined value of the bidder and target companies increases after the declaration of the merger. However a lot of studies have failed to find any direct relationship between the merger and the gains in performance or in shareholder wealth. But there are reasons for mixed evidence as a merger announcement also takes in to account the way the deal is financed .If equity offerings are used it may be interpreted as overvaluation by the issuer. Therefore the negative announcements returns to the firms that are bidding can be attributed to the negative signalling which is completely unrelated to the value which is created by the merger. Returns to the bidders companies shareholders is greater when the merger is totally financed with cash than in mergers in whi ch financing is done through equity offering. There is one more problem with this event study analysis as if there is a consolidation wave going on; mergers are anticipated by stockholders and analyst. Potential candidates for the mergers are highlighted and made popular by the financial press and the stock market analysts. In these cases the event study analysis may fail. Therefore an analysis of mergers across the world and a literature review does not provide strong evidence on the benefits gained by banks in the mergers in the banking industry. Also the findings of the literature also contrast with the findings of the consultants who find a considerable cost savings and operational efficiency achieved through mergers. The reasons why academic study do not find cost benefits and the consultants highlight this fact are Consulates may study a potential cost savings which may not materialize They tend to highlight potential cost saving activities and the economist study all the activities. They tend to be biased towards successful cases and ignore the unsuccessful ones. They tend blow up the benefits achieved while the benefits may be miniscule if accounted on a relative terms. The academic studies provide motivation for the examination and evaluation of two important issues pertaining to the mergers and acquisition to the Indian banking. Do mergers help in improving the operational performance and result in cost savings However in India most of the mergers are forced by the central bank in order to protect the interest of the depositors and avoid financial distress therefore the above mentioned reason is rarely found in the mergers activities. Do merger provide abnormal gains and returns to the acquirer and the target banks upon the declaration Consolidation Trends Observed in India Improving the operational performance and cost efficiency has always been a priority in Indian banking sector and has been a major issue of discussions in the policy formulation by the government of India in the consultation and with the central bank (Reserve Bank of India). Several committees have also been formed in order to suggest structural changes to achieve this objective. Some of the major committees formed are Banking Commission, 1972 Chairman R.G Saraiya, 1976 chairman : Manubhai Shah Committee for the functioning of public sector banks, 1978 chairman : James S Raj These committees have suggested the restructuring of the Indian banking system with an objective to improve the process of credit delivery and also suggested the idea of having around 3 to 4 large banks which have a pan India presence and the rest of the bank should be present at the regional level. The major thrust on consolidation started with the Narasimham committee in 1991. It emphasised and embarked upon consolidation and merger in order to make the Indian banks huge in size and also comparable to the global banks. A second Narasimham committe was also formed in 1998 which suggested mergers and consolidation among the strong banks in public as well as private sector and also with other financial institutions, NBFC (Non Banking Financial Companies). Now we will have a look at some of the recent trends in consolidation in Indian banking. Restructuring of weak Indian Banks Amongst other routes government of India has adopted mergers as a means to achieve restructuring of the Indian banking system. Many banks which are small in size and are weak are merged with other banks which are stronger and are larger to protect the interest of the depositors and also to avoid financial distress. These types of mergers can be termed as forced mergers. Hence when a banks shows symptoms of sickness like increasing size of NPAs, reduction in the net worth and substantial decline in capital adequacy ratio, RBI forces moratorium under the section 45(1) of the Banking Regulation act 1949 for a specified period on the activities and the operations of the working of the sick bank. In this period a strong bank is identified and asked to prepare and present a scheme of merger with the weak bank. In this case the acquirer banks takes hold of all the assets of the weak bank and ensures the depositors of their money in case they want to withdraw. The mergers which took place in the pre-reform period fall into this category. In the post reform period 21 mergers have taken place out of which 13 are forced mergers where RBI has intervened. The main reason for these mergers was the protection of the depositors interest and avoids the financial distress. Mergers which took place voluntarily Apart from forced mergers there have been few mergers in which expansion, diversification and growth were the major motives and in which RBI did not intervene or force. The first merger of this kind took place in 1993 when the Times Bank was acquired by HDFC bank which was followed by acquisition of Bank of Madura by the ICICI Bank. The latest of these is merger of Lord Krishnan Bank with Centurion Bank of Punjab. Although in all these deals the target bank suffered with low profitability, Increase in NPA and lack of alternate revenues in order to provide cushion for capital adequacy but these mergers were not forced. There was no regulatory intervention in these mergers however the motives behind these mergers may not necessarily be scale of economies and achieving market power. For instance ICICI bank acquired bank of Russia with a motive of entry in to Russia although it just had one branch. SBI acquired 51% stake in Mauritian Bank through Indian Ocean International Bank which wil l be integrated with the State Bank of Indias International business as a subsidiary. Integration of Financial Services and Achieving Universal Banking Model Several developmental financial institutions have been formed over a period of time in India in order to improve the efficiency of allocation of resources to different segments of the economy. However because of the flexibility given by the RBI to the banks in the credit delivery process the banks have increased and diversified their loan portfolio to various areas such as project finance, long-term loans, and other specialised sector lending. This is the reason why DFIs have become redundant. A working capital group (1998) was appointed by RBI which has recommended the universal model of banking by exploring the possibility of mergers between various sets of financial entities based on economical considerations. Similarly in the private sector ICICI merger with its subsidiary bank and IDBI (industrial Development Bank of India) was incorporates as a public sector bank which acquired private sector bank IDBI bank in 2004. In order to provide integrated financial services and achieve operation efficiencies many public sector banks have acquired their subsidiaries, for instance Andhra Bank acquired its housing finance subsidiary Andhra Bank Housing Finance LTD, Bank of India acquired BOI finance Ltd and BOI Asset Management Company Ltd. Acquisition of similar types took place in the private sector as well. Alignment of Operations of Foreign Banks with Global Trends As the Parent banks went under reconstruction process their parts operating in India also started restructuring. For example, Standard Charted Grindlay bank was formed due to acquisition of ANZ Grindlay by the Standard Charted Bank. Similarly due to acquisition of two Japanese banks like Sakura Bank and Sumitomo Bank Ltd the Indian operations of Sakura Bank were merged with Sumitomo Bank in 2001.Forign banks were permitted to enter into merger and acquisition transaction with any of the private sector bank in India with a condition that the overall investment limit limit will be 74 per cent after the second phase of WTO commitments which commenced in April 2009. This may lead to further consolidation in the Indian banking sector. Merger and Consolidation of Cooperatives, RRBs and UCBs Small banks present in India apart from other banks are co-operative banks, Regional Rural Banks (RRBs) and Urban Co-operative Banks (UCBs). These are formed for fulfilling the credit requirements of agriculture, small traders and SSI and other rural economic activities. All of these institutions are suffering from bad loans, operational inefficiencies, and Poor recovery of loans. This proved to be a barrier for further lending and financial intermediation. A committee formed under Jugdish Capoor suggested voluntary amalgamations or merger of these co-operatives based on various criterias like economies of scale, especially in areas where the operations of these banks have become unviable and there are no more in a position to supply credit to agriculture sector. 28 RRBs were consolidated into 9 new RRBs in September 2005.A high powered committee on Urban Co-operative Banks (1999) recommended that UCBs which are sick should be liquidated in a time bound manner as the operation of lar ge number of financially sick banks is devastating for UCBs and also for the interest of depositors. Due to this more mergers are expected in the future and RBI also has taken a lot of new initiatives for restructuring of banks including the issuance of guidelines in May 2005. Shareholders Perception of Merger As stated above the Indian banking sector has experienced two types of mergers – focussed and voluntary mergers. Forced mergers were initiated by RBI and their main objective was to protect the interest of the depositors and prevent financial distress of the banks. Whenever a bank showed symptoms of sickness like huge NPA levels, erosion of net worth etc, RBI intervened and merged the weak bank with a stronger one by force. Thus we can form a hypothesis that in case of forced mergers the target banks shareholders will gain abnormally with the declaration. The second type of merger is voluntary type where the motivation behind the merger is to achieve cost reduction, increase in size, diversification, strategic entry into a market. In these cases the acquired banks reaped the benefit of branch network and customer clientele of the banks acquired. In these cases both the acquirer bank and the target bank must have had benefit out of the merger. In this paper the mergers between 1993 to 2006 are considered. There were 21 mergers out of which only five were voluntary. These are mainly mergers of private sector banks with other private sector banks. Two cases are conversion of financial institution to commercial bank where the objective was to form a universal bank model which offers a wide range of financial services. Ina study conducted which is presented in this paper six cases of forced mergers were selected for the purpose of analysis as in other cases the target banks were not listed and the size of the banks were much lower than the acquirer banks therefore these cases are of less merit for further analysis. In this study the wealth effects of almost all the banking mergers during the period 1999-2006 is analyzed. The event study analysis used in this analysis is very straight forward and conventional. The merger period consist of four days prior and four days after the event. The reason for taking such window is to analyze the change in wealth of the shareholder around the day of the declaration on the merger. Daily adjusted closing prices of stocks and the market index is taken for the analysis. The abnormal returns are calculated as follows. ARit= Rit – [a + BRm] Here Rit: daily return on firm ‘i on day ‘t Rmt is the return on the bench mark index a and B are the regression parameters. The abnormal return is calculated for both the acquirer and the target firm and the significance of these values are tested by finding standard error and the t-value : Analysis of Research Results In forced mergers case the stockholders of target banks have not achieved any significant returns on the declaration of the merger. However in the case of Nedungadi Bank, the stockholder did gain significant on the 2nd day of the announcement but after that no abnormal returns were found. In the case of GTB the stockholders had deeply discounted the merger. As it was a case of serious case of bank failure the merger did give a confidence to the depositors but the merger declaration did not provide any abnormal returns. United bank did gain marginally on the announcement but it was not significant statistically. Thus the hypothesis that target banks shareholders welcome merger announcement as a safety net can be rejected. The shareholders of the acquirer bank lost their market value of equity. In case of ICICI bank, it was signalled as an emergence of a large private sector bank and hence due to which the banks shareholders expectations go up with significant increase in the returns. In other cases of acquisition the acquirer bank lost on merging with the weak banks. Hence in all the forced mergers neither the acquirer bank nor the target bank gained on declaration of the merger and the stockholders of the acquirer bank lost wealth as the announcement of the merger was taken as a negative signal. It is argued that merger of weak banks with strong ones is essential for restructuring of banking system and also a step in the consolidation of the banking sector. But in almost all the mergers it was found that the target banks for the merger were determined at the time when they were at the verge of getting collapse. The acquirer bank which was forced by RBI was left with no option but to accept the proposed merger. It is recommended that RBI should pursue Prompt corrective action system and should determine the weak banks on the basis of some defined criterias so that the acquirer bank can choose the target banks on the strategic issues which benefit all the parties . Abnormal Returns of Target Banks Abnormal returns of Bidder banks In case of voluntary mergers it can be seen that the target banks have obtained higher returns that the acquirer banks. Both the acquirer and the target banks stockholders benefitted on declaration of the merger. Therefore the stock market welcomed the merger which will lead to growth and efficiency aspects of the merged entity and benefitted the shareholders of both the banks. For instance in the case of acquisition of times banks by HDFC bank it was viewed as a positive signal by the shareholders of both the bank. At the time of the merger the Times Bank was crippled with increasing NPAs and low profitability, the acquisition by the HDFC bank gave relief to the depositors of the Times Bank. On the other hand HDFC bank emerged as the largest private sector bank by gaining from the retail portfolio of the Times Bank. In case of BOM acquisition by the ICIC bank the BOM gained the advantage of being able to provide services like Treasury management, cash management services to its cust omers and ICICI bank increased its size by acquiring BOM and reached the position of large private sector banks in 1999. At the announcement of the merger there was a steep rise in the gains which was reaped by the BOM shareholders however the stockholders of ICIC bank did not get any significant returns. In all the even study analysis revealed that neither the acquirer bank nor the target bank stock holders have perceived any potential gain on the declaration of the mergers. Hence the share holders who are important stakeholders of the banking companies did not consider the mergers as a signal of improving health, economies of scale and the market power of banks. Managers take on the Mergers Managers provide highest priority to the merger of the two public sector banks which provides a signals the banking sectors view on the need for consolidation of public sector banks. Managers do not prefer the merger of bank and NBFCs or financial services entities There are some issues which are needed to be taken care of while proposing a merger of banks according to the managers Valuation of the Loan portfolio of the target bank This is one of the main factor which is needed to be considered at the time of the merger. As in the management of the credit portfolio the accounting and the exposure norms suggested by the RBI are the same which helps in figuring out the book value of loans easily. However Indian banks have adopted divergent practices in rating the borrowers, loan pricing and maintenance of collateral securities therefore a detailed audit of the loan portfolio, cash flow generation and collaterals is very essential in order to get an opinion on the value of the loan portfolio of the target bank. Valuation of Intangible assets The valuation of the assets of the banks is a very critical factor for the success of any merger or consolidation. The tangible assets of the bank are loans, investment part apart from other fixed assets like buildings, ATMs and the IT infrastructure the bank owns. A commercial bank also holds a lot of intangible assets like clientele based on core deposits, safety value contracts, computer softwares, human resources, brands and goodwill. Determining the inherent strength of the bank based on the valuation of the intangible assets is also very important. Determination of the value of equity Determining the value of the target banks assets, liabilities and valuation of its equity value is the major aspect of a merger process. Various approaches can be used like dividend discount model, cash flow to equity model and excess return model. However banks have totally different operations than a normal manufacturing firm as they are highly leveraged because they have more than 90% of the resources as borrowed or as debt and banks are highly regulated institutions and regulatory instruction have vast implication in asset and income recognition. Interest rates volatility, regulatory capital adequacy ratios and restriction on dividend pay put ratios also have influence on the earnings of the banks. Human Resource Issues It is the most complicated issue in the merger process.HR issues like the service condition, strategy for rewarding people, employee relation, benefit plans and compensation, provision of pension, law suits and the trade union actions are very critical for the viability of the merger and the deal to go through. Cultural Issues This is also a critical issue in the pre-merger and post merger period. It is central to an organizational environment and recognizing cultural friction is very difficult as it results in various problems such as poor productivity, riff in the top management, increase in the turnover rates, delays in the integration process and failures in realizing the projected synergies. Information Technology platform integration In todays banking banks are highly dependent on the information technology. It has become a key strategic issue due to the impact it has on the operation of the bank. A significant portion of the synergy depends on the information technology integration. Divergent IT platforms and software systems have proven to be major constraints in the consolidation. Customer Retention Customers also major stakeholders of banks and are needed to be communicated properly about the merger and the customers of the target bank should be attended with utmost care. Various studies have shown that firms borrowing from target banks are very likely to lose their relationship with the bank on its merger.

Questar Company Risk Analysis Essay -- essays research papers fc

INTEROFFICE REPORT Questar Corporation: Energy Company Three segments of Questar operations cover resources and regulated services. Follows is the risk assessment for Questar: Resources, Lack of internal control in estimating reserve(s) revenue, Financial analysis and the market, New land developments, and the Environment. Most of the company's operations are located in the Rocky Mountain region of Wyoming, Utah, Colorado, Texas, Oklahoma, and Louisiana (5). Distribution is throughout the United States. QUESTAR OPERATIONS A multi-faceted holding company formed through reorganization in 1984 into an energy company to distinguish non-utility services (5). Crude resources from fossil fuels (oil, natural gas) are developed through drilling for interstate transmission, storage and distribution. The resource division involves gas, oil, natural gas for marketing, cost analysis of gas development, risk management, and distribution for the wholesale/retail industry (5). 1.  Ã‚  Ã‚  Ã‚  Ã‚  Market Resources is the major producer of income driving segments of the business. Natural gas (nonregulated) is 86% of its focal point on evaluating crude resources for process through â€Å"gas management† (5). 2.  Ã‚  Ã‚  Ã‚  Ã‚  Questar Pipeline (regulated) is responsible for transportation and storage. This includes the development of pipeline. Business is dependent on acquiring leases and the use of land. Operations at well sites can have a life of 20-40 years. 3.  Ã‚  Ã‚  Ã‚  Ã‚  Questar Gas (regulated) involves retail distribution. Sales are based on seasonal usage and economic factors such as the market’s going rate (5). RISK ASSESSMENT Resources: Price Risk and Land Opportunity †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Crude resources are a distinct global market. Questar is a profitable and reliable enterprise with all three segments highly revenue driven, secured by federal and state government regulations. Wholesale figures fluctuate within the industry by a minimal amount for distribution nationwide, but this type of commodity requires prices to be set by the market nationwide and not the company. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Competition in this industry is the ability to secure land rights for drilling. Government regulations have restricted areas containing crude resources for development by 40% (7). 90% o... ...rve%20Valuation.pdf> (8 October 2004). Industry changes that may affect energy resources financial reporting. External 10)  Ã‚  Ã‚  Ã‚  Ã‚  Kieso, Donald E., Weygandt, Jerry J., Warfield, Terry D. Intermediate Accounting. Hoboken, NJ: Current Developments for Audit Committees 2002. Pricewaterhouse Coopers analysis on recognizing revenue. External 11)  Ã‚  Ã‚  Ã‚  Ã‚   â€Å"Natural Gas Market Prices.† California Energy Commission. 2 April 2003. http://www.energy .ca.gov/2003_price_spikes/2003-04-02_natgas_execsum.html> (8 October 2004). Executive summary on 180% increase within two days on the national spot market for natural gas. External 12)  Ã‚  Ã‚  Ã‚  Ã‚   â€Å"Questar Goes Live with the SPL Customer Care and Billing Solution.† Factiva Online September 2004. http://80-global.factiva.com.libproxy.sdsu.edu/en/arch/display.asp> (8 October 2004). Accounting changes in billing customers. External 13)  Ã‚  Ã‚  Ã‚  Ã‚  Standard & Poor’s. Register of Corporations, Directors and Executives. 2003 ed. New York: McGraw-Hill Companies, 2003. The energy sector as a whole. External   Ã‚  Ã‚  Ã‚  Ã‚  

Angelas Ashes Essay -- essays research papers

Angela's Ashes Exposition:   Ã‚  Ã‚  Ã‚  Ã‚  Characters: Francis McCourt- protagonist   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Malachy McCourt (father)- antagonist   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Angela McCourt (mother)- protagonist   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Malachy McCourt (brother)- protagonist   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Michael McCourt (brother)- static   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Alphie McCourt (brother)- static   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Abbot (uncle)- protagonist   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Uncle Pa Keating (uncle)- protagonist   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Aunt Aggie (aunt)- antagonist   Ã‚  Ã‚  Ã‚  Ã‚  Setting: In the poor part of Limerick, Ireland around 1938.   Ã‚  Ã‚  Ã‚  Ã‚  Rising Action: 1. Frankie's father, Malachy, lost his job in America. There is no money left in the family and they are living a poor and unhappy life without enough money to live. They are depending on the government to help them. 2. Frankie's mother has a baby, Margaret. Because of the lack of money the family can't eat and keep the children healthy. Margaret, the only girl dies and Frankie's mother and father are very unhappy. They go through hard times because of their loss. 3. Frankie's mother's cous...

Boony Doon Case Essay

CASE FORMATTING RULES AND CONTENT GUIDELINES/ CASE QUESTIONS FOR BONNY DOON VINEYARD I Formatting rules The case write-ups should be typed and double spaced, 12 point font (Times New Roman), normal margins with a maximum length of 5 pages which you can split between text, numerical tabulations or appendices as you see fit. You should have a cover page with your names, student numbers, title and course section. You can add the table of contents page and 1 page with the appendices. I expect that it will take you about 3.5 pages to do the analysis (points 1to 4) and about 1.5 pages for points 4 to 7. II Content guidelines The structure of your report should follow the following template: 1. Brief statement of current position/outlook of Bonny Doon (about 1 paragraph) 2. Firm Analysis (This part should include: – business model, business-level strategy and position, – value chain model analysis – analysis of the firm’s resources, capabilities and competitive advantage, – organizational analysis (management, ownership) – profitability analysis (please make sure to include relevant numbers). 3. Industry analysis This part should include: – basic descriptors (size of the market, key players, demand) – Porter’s 5 forces model, – life-cycle model, – key success factors (what it takes to be successful in this industry) – economics of the industry (profitability, costs and revenues) – industry’s overall attractiveness (including the past performance and projected growth) 4. Strategic problem/issue identification and definition 5. Generation of alternatives 6. Recommendation(s) 7. Brief implementation schedule III Case Guidelines/major points for â€Å"Bonny Doon Vineyardsâ€Å" Reference point: You are writing a report as consultants to Bonny Doon. Your report will be presented to their senior management. Here are the main points for your report. 1Describe the current environment for Bonny Doon, including competition and the market trends in the California wine industry at the time of the case. 2.Outline the main features of Bonny Doon’s business strategy. What are its benefits and drawbacks in the light of current situation? Why has Bonny Doon been so successful? 3What are the main challenges and strategic problems facing Bonny Doon? 4.In light of the problems that Bonny Doon is facing, what would you recommend to their management? You should attach a statement to this write-up, which should be signed by all members of the group, indicating that this is entirely the group’s own work, is based exclusively on the information provided in the case, and that each group member contributed their best.

Grandpa to Me

R Truby 1 Robert T. Truby Instructor Vincent Basso English 101. 064 30 January 2012 Robert H. Truby I have a grandfather named Robert Henry Truby. Before he was born in 1945, two of his uncles were shot and killed. One was named Bill and another was named Sam. In the early 1900s, there was a feud between my family and another up by Bondad, Colorado. A gangster rancher by the name of Ike Cox shot two of his uncles as a result of this family feud. The mother could not bear the chance of losing another son. Right after Sam’s death, she decided to move the family and their cattle to New Mexico.My bloodline moved to an unforgiving desert seeking survival. They moved to a remote location called Largo Canyon to raise their cattle and children. The dry summers were hot and the winters were cold. A presence of a prior civilization cultivated the surrounding landscape with Native American culture and evidence. Coyotes and cattle didn’t always get along so Henry, my great grandfat her, trapped coyotes. Coincidently, coyotes were worth more than cattle at the time. A lot of people lost their ranch to the bank or to the government because of tax foreclosures, but not Henry.Henry used his money to buy ranches surrounding his own for a small price. After that the Truby ranch reached sixty-six sections, totaling 42,240 acres. The amount of responsibility with that much land was staggering. For example, guarantying a thousand cows have what they need is like having a thousand babies R Truby 2 making certain they have what they need. To some, raising cattle was harder than raising children. My family was invested in cattle and did what they had to do to get by. Henry had one son named Robert Henry Truby, my grandfather. I call him Papo (Pah-Poe. ) Robert helped his father with the ranch since he could walk.Robert had an overwhelming love and trust towards his father. He left for Las Cruces to attend their university to study Animal Science; however, he would drive o ver eight hundred miles every weekend to help Henry ranch. To Robert, money couldn’t replace moments and time he shared with his father. One semester away from graduating with a degree, Robert learned he had to go back and help ranch. It was never a choice. His family needed him and he was okay setting aside personal goals. An analysis of my grandfather reveals his character; however, there is more to him than meets the eye.Nothing is dearer to my grandfather than family and everybody in this family treasures nothing more than his character. My dad’s attitude towards my grandfather is worth quoting. â€Å"I have never had more respect or trust towards a man. He gave me a foundation to live. He is a sense of home. I know I can always go to him for help. † You could not ask more from a father. My grandmother, Rachael, had her own words to describe my grandpa. â€Å"He is gentle. He is caring and loving. † Robert gave her his word when they got married that he would stay true and for that he will stay forever faithful.Challenges they’ve faced is a list that defines devotion and care towards one another. Grandma Rachael still gives him backrubs so he must be doing something right. After almost fifty years of marriage, Robert and Rachael have sealed the sanctity of their marriage. My family wouldn’t be a family without him and for that we are forever grateful. R Truby 3 Although Papo resembles a pioneer from an older generation, he still fits into today’s society in his own way. I’m about six inches taller than my grandpa right now and he still tells me I might be as tall as him one day.Papo always looks younger with a hat on because it covers up the part of his head that’s missing hair. It doesn’t matter where he’s at he’ll have on a pair of boots and a pair of wranglers. He’ll wear a polo shirt that buttons just at the top when he goes to town. When he’s working arou nd the house he’ll wear a shirt that may have everything from paint to sawdust on it. That’s my grandfather’s style and it’s never changed. Papo is stronger than he looks and smarter than he thinks. My grandpa doesn’t drink alcohol or smoke, but he drinks a lot of coke.After all the Coca-Cola he’s had in the past sixty-eight years, Papo is still working out on the farm. It hurts his back, but he still gets out there and does what needs to be done. He values his John Deer tractors. After mastering all the skills of farming, old age seems to take over just a little bit. It is quite humorous to watch Papo drive the tractor because he’s always running over stuff. It’s not on purpose. His perception is just off a little. He won’t take the obvious blame, instead he’ll jokingly blame it one someone or something else. He knows that his family won’t believe him and that’s what makes it even funnier.My grandpa has his own sense of humor that I find intriguing and different. I may have more respect for my father, but I feel closer to Robert. We’ve got the same name, but that’s not the reason. I have a connection with my grandpa that words cannot describe. He is my idol. I look up to him in all things, except when it comes to computers. He is not very good with computers. He holds a lot of feelings back in fear that he will upset someone. In order to find out if I’ve let him down, I have to know him on a deeper level. This can be quite difficult because he is so subtle and modest. My grandpa wants me to be the best I can be.I can’t tell you R Truby 4 how many times Papo reminded me to go to school and to do my homework so I can get a good job one day. I am his lineage and I am a direct reflection of this man. I am his only grandson. If I found out that I let my grandfather down, it would hurt me and I would beat myself up for it. It is my responsibility to make him proud. That is partly why I’m here. Even if his words of wisdom may at times become repetitive, I listen and respectfully nod my head. Whatever I do he somehow feels responsible for and he wants me to learn from his past and his mistakes that followed.Sadly my grandpa has to work at an old age without retirement because he has worked for himself his whole life. When he is too old to work anymore he will have to sell the farm. I’m sure he would like to keep the farm if he could. He’s guiding me in the right direction to be financially stable and he knows the rest will follow. I will always hear his voice in my head telling me what to do or which decision to make. I’ll hear him telling me to hang in there when times get tough. I hope I become half the man he is because he is more than my grandfather. He is my hero.

Mattels's Chines Sourcing Crisis of 2007 Assignment

Mattels's Chines Sourcing Crisis of 2007 - Assignment Example 3.Many international trade and development experts argue that China is just now discovering the difference between being a major economic player in global business and its previous peripheral role as a low-cost manufacturing site on the periphery of the world economy. What do you think? 14 1. Mattel’s global sourcing in China, like all other toy manufacturers, was based on both low-costs manufacturing, low-cost labor, and a growing critical mass of factories competitively vying for contract manufacturing business. Do you think the product recalls and product quality problems are separate from or part of pursuing a low-cost country strategy? Mattel was founded in the year 1945 by Ruth Handler, Elliot Handler and Harold Matson (Mattel, 2001). Mattel, a toy company from the United States, has been preserving a business relationship with China since 1959. Despite having a long-term trade relationship with China, Mattel had to face numerous ethical problems regarding its production process. Likewise any other multinational company, Mattel’s functions in the Chinese manufacturing sector was majorly focused on the low-cost production process with the virtues of low-cost labourers. Moreover, with the effect of modernisation and globalisation, the Chinese industry was also flourishing with growing numbers of small factories which were solely focused on operating as third-party manufacturers for global brands and thus earn a large amount of foreign currencies. This further motivated Mattel to shift its production process in the Chinese manufacturing sector with the intention of minimising its responsibilities towards quan tity production and thus attaining a larger market share along with increased sales (Dietz & Gillespie, 2012). With its production functions transferred to the low-cost market of China, Mattel was able to earn various advantages in terms of low-cost labourers as well as low-cost raw materials. However, the shift of Mattel’s production functions

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Implement and monitor nursing care for consumers with mental health conditions - Assignment Example Anderson’s condition and also discuss the important related functions and interventions which shall then be implemented by this nurse in order to appropriately address Mr. Anderson’s mental health problem. I have different responsibilities as far as Mr. Anderson is concerned. First and foremost, I have to recognize and accept the client as an individual (Schultz & Videbeck, 2009, p. 29). He is a person who is apart from everyone else; he has individual thoughts, emotions, and experiences which make him unique. This recognition would prompt me to treat and manage his case based on his individual circumstances, not based on generally prescribed interventions for patients manifesting his symptoms. Another responsibility that I need to fill in behalf of my client is to be his advocate (Schultz & Videbeck, 2009, p. 29). Since, he is not in the best position to care for his needs, my role would be to ensure that his rights and needs as a patient are protected and cared for. My role as a patient advocate would involve â€Å"acting on the client’s behalf when he or she cannot do so† (Videbeck, 2008, p. 96). As a nurse, my role in Mr. Anderson’s case is also to assess and plan his care (Schultz & Videbeck, 2009, p. 29). This assessment should be conducted in a detailed manner and in a manner appropriate to Mr. Anderson’s needs and condition. The assessment process shall be discussed in detail in the paragraphs that would follow. My role as a nurse would also involve â€Å"accepting the client’s perceptions and expressions of discomfort† (Schultz & Videbeck, 2009, p. 29). I have to accept that my client’s expression of discomfort are legitimate expressions without having him prove to me that he is really feeling that way. This would help establish trust and confidence between myself and Mr. Anderson and it would help him open up more about his feelings. Another responsibility I have is to respect Mr.