Case Questions 1. According to a major economics consulting firms‚ Fiat`s ¨South American operations are the jewel in the Italian company`s global operations¨. Fiat has plants in Brazil and Argentina‚ and Brazil is the biggest market‚ well ahead of its home-country market. In 2011‚ with the Chrysler venture taking up more and more of the firm`s attention – and as European sales suffered a steep decline – rumors began to circulate that Marchionne might move Fiat headquarters from Italy to the United
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Strategic Change: The case study of Daimler Chrysler Introduction Globalization results in rapid and constant business environmental changes. As a result‚ most organizations tend to be more transformational organization so as to be flexible to respond promptly to those changes. Strategic change is one of the effective solutions to this situation. This paper will discuss the nature of strategic change in the first part. The next section is an analysis of Daimler Chrysler case study; whether the strategic
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Fiat Chrysler Q2 Earnings Group Performance: FCA has reported a positive overall financial performance for the second quarter of 2015. It earned a net profit of € 333 million that is up 69 % from Q2 2014 net profit of € 197 million. Net revenue for the group increased by 25 % from € 23.3 billion to € 29.2 billion while there was a slight reduction in net industrial debt which now stands at € 8.0 billion. The outstanding improvement in net profit and EBIT was led by a strong improvement in NAFTA
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On November 24‚ 2010‚ XM Canada and Sirius Canada Inc. agreed to a merger of companies. This merger‚ unlike that of the US‚ took a lot of time and required Canadian ownership so all previous negotiations had failed. The merger between the two companies formed SiriusXM Canada. The new company believed they would have a total subscriber base of 1.7 million and offer between 120-130 channels. As of today SiriusXM Canada has a subscriber base of 2.7 million people. XM Canada‚ which was a subsidiary
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MERGER AND RECONFIGURING OF HYUNDAI-KIA Byoung-Hoon LEE‚ Sung-Jae CHO The Korean auto industry continued to grow without a slump from the early 1980s to the mid of 1990s. As illustrated in <Figure 1>‚ the auto industry in Korea had shown a sustained growth in sales of domestic and overseas markets until 1996. Between 1981 and 1996‚ it recorded a notably high rate of averaged annual growth in production (22.7%)‚ domestic sales (19.5%)‚ and export (36.2%). However‚ it experienced an unprecedented
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Questions and Answers 1. What are the strengths and weaknesses of Daimler-Chrysler’s strategy? There are several strengths of Daimler-Chrysler’s strategy. First‚ it has strong competitors amongst the automotive market‚ so from the merger‚ both companies will reduce the intense competition in the market and this will increase the market share in the worldwide automotive industry. The acquisition and merger between two parties in worldwide market share will help them to expand the technology
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A fresh example that I can think of would be a purchase of Christmas clearance at Target or other retail stores. Usually a week or so later the items will get marked down to 70% off‚ a few days after the 70% markdown‚ everything that is left gets marked down to 90% off. What does Target want to accomplish with its pricing? Cutting down the cost of products as low as 90% is a pricing strategy that the store is trying to maximize the sales to generate as much revenue as possible‚ regardless of what
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Case Study 17 Chrysler Chrysler Corp was established in 1929 ( by Walter P. Chrysler) during the time when the auto industry had just began to bloom. During the depression‚ smaller more specialized companies began to disappear and the larger companies began to consolidate and buy up some of their smaller competitors. It was at this point in time that the Big Three emerged (Ford‚ GM‚ and Chrysler). It was also around this time that the UAW (United Auto Workers Union) was established‚ and this
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refers to a steamy coffee with double cream‚ double sugar‚ and to top it off‚ a beautifully glazed maple donut. This is a staple snack of the gray‚ cold‚ Canadian morning. What could make it better‚ you ask? A multi-billion dollar Canadian-American merger of course! This is huge news‚ as it has enormous implications for both entities‚ as well as the mega-company that they will become. According to Forbes‚ Tim Hortons has 4‚546 restaurants across Canada and the U.S.‚ and has had a 9% increase in revenues
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Answer 1 The merger price at which the shareholders of Hybrid would be agreed is 68.75 per share. Total number of shares outstanding of Hybrid Golf 8 million. It means Birdie has to pay $550 million (68.75*8 million) to the shareholders of Hybrid. The market valuation of Hybrid shows that the value of the firm is equal to $1175.03 million. [pic] [pic] For the calculation of the firm value the WACC is used by considering current debt equity ration ( .50). WACC is calculated as follow
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