Is an economic recovery underway?

A ‘crossover’ blog here, since most Business students will be spending at least some of their time thinking about the external environment that firms operate in. For most businesses, the dominating external issue has been the deep recession – a long period in which the UK economy has struggled. Analysis from The Economist suggests that the economy has taken so much damage we’re basically back to where we were in late 2003! A pretty depressing thought, but there are some signs that things might be picking up.

http://www.tutor2u.net/blog/index.php/business-studies/comments/economics-for-business-is-an-economic-recovery-underway#extended

Porter's 5 forces model

The Porter's Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you're considering moving into.

http://www.mindtools.com/pages/article/newTMC_08.htm

Glenstrata - Glencore proposes merger with Xstrata

Yesterday morning’s business news has been dominated by the proposed merger of Glencore and Xstrata. Glencore’s 34% holding of Xstrata shares had made a third party approach for Xstrata very difficult if not impossible.
Xstrata bought coal mines from Glencore in 2001, and after going public in 2002, it grew by a series of acquisitions, including the purchase of the Canadian nickel producer Falconbridge in 2006. Although Xstrata had a market capitalisation of c. $50bn, Glencore’s market capitalisation was $45bn.

http://www.tutor2u.net/blog/index.php/business-studies/comments/glenstrata

ResearchBuster: Acquisitions

Our ResearchBuster blog posts are designed to help students identify and integrate examples of business strategy for their synoptic essays and exams. This ResearchBuster look at some of the most significant examples of takeovers / acquisitions in recent years…

http://www.tutor2u.net/blog/index.php/business-studies/comments/researchbuster-acquisitions#extended

Takeovers and Mergers - the Language of M&A

Students researching takeovers and mergers will come across some terminology which might not be familiar to them. Here are some key terms which are worth understanding and using when writing about M&A:

http://www.tutor2u.net/blog/index.php/business-studies/comments/takeovers-and-mergers-the-language-of-ma

Google’s takeover of Motorola Mobility is given regulatory seal of approval

Google’s biggest-ever takeover has been given approval by competition regulators in both the EU and USA, paving the way for the takeover to be legally completed.
Back in August 2011, Google announced a $12.5bn bid to buy Motorola’s mobile technology division. These videos outline the strategic rationale for the takeover:

http://www.tutor2u.net/blog/index.php/business-studies/comments/googles-takeover-of-motorola-mobility-is-given-regulatory-seal-of-approval

Tata and the rise of Jaguar Land Rover

The Tata takeover of Jaguar Land Rover (“JLR”) in 2008 is one of our five “must research” deals for the AQA BUSS4 research theme in 2012. And this recent article provides students with some compelling evidence about how successful the takeover has been for Tata, the private Indian conglomerate that is now the UK’s largest manufacturer. 

http://www.tutor2u.net/blog/index.php/business-studies/comments/tata-and-the-rise-of-jaguar-land-rover

Kraft and Cadburys

The Kraft Foods hostile bid for Cadbury received extensive coverage in the media and many of the issues and well covered in this series of short news clips which help tell the story of the deal. Plenty in here for students, including issues around takeover pricing, strategic rationale, the impact of the deal on shareholders and other stakeholders.

http://www.tutor2u.net/blog/index.php/business-studies/comments/takeover-insights-kraft-cadbury-the-story-in-video-clips

This is a simply wonderful video that was produced by the bid defence team at Cadbury to record the process of Kraft’s hostile bid for Cadbury between August 2009 and January 2010. Although ultimately their efforts were unsuccessful, it shows just how much effort is put into mounting a bid defence. Some great clips and interviews too with the people involved at the end. Highly recommended.

http://www.tutor2u.net/blog/index.php/business-studies/comments/takeover-insights-kraft-cadbury-behind-the-scenes-of-the-bid-defence

This 10 minute interview in Autumn 2010 by Bloomberg with Kraft Foods CEO Irene Rosenfeld provides some useful perspectives on the strategic rationale behind the Kraft takeover of Cadbury. Obviously presented with a US business audience in mind, but still hugely useful for A2 business students (particularly AQA BUSS4) none the less…

http://www.tutor2u.net/blog/index.php/business-studies/comments/kraft-cadbury-justifying-the-deal

Would a GM and Peugeot merger make sense?

Talks of a strategic alliance between PSA Peugeot Citroen and General Motors (GM) fit neatly with two key trends that are emerging in the global motor industry.

The first trend is the changing nature of carmakers' relentless search for economies of scale.

http://www.bbc.co.uk/news/business-17120631