In Otis case page 8, “Traditionally we had focused on the management of physical assets. The next step in our evolution will be the management of information flows between all the participants …” What does it mean by “information management” and why is this important?
Would the changes with e*Logistics be easy? Who would be unhappy with this change? How do you think Otis managed and overcame these challenges?
In Otis case page 8, “To achieve continuous transformation, the e*Logistics program makes sure the business process change sticks. … With the e*Logistics program, best practices from SIP are baked into the organization and institutionalized…” What does it mean by “sticks” and “baked”?
In an industry you are familiar with, which company is playing in Cost Leadership strategy? Who’s in Differentiation? Who’s in Focused?
What is an interesting recent example of M&A? Why do they merge with each other?
8 Responses to Online discussion questions – Sep 19
A recent example of M&A is Randstad, a human resource service provider, and Monster, one of largest employment websites. Ranstad has acquired Monster in order to use the channels provided by Monster to extend their recruitment services. Randstad and Monster provide different services but these services are complementary to each other. Using Monster’s resources, Randstad hopes to create and provide the most comprehensive capabilities for Human Resource services.
In the automotive industry, Toyota would be in the cost leadership strategy. Although they may not have the lowest priced cars in the market, they are generally known to be affordable for a typical civilian, reliable and practical to carry-out daily activities. A differentiation automaker would be Mercedes-Benz, where they set themselves apart through the luxury status. Mercedes-Benz differentiate their vehicles through performance, luxury and comfort rather than focusing on providing the most affordable cars. Lastly a focused automotive company would be Telsa. Telsa is focused on creating vehicles with innovation. This includes zero emission cars with all electric motors and self-driving capabilities.
A recent example of M&A is Wal-Mart acquiring Jet.com, an electronic commerce website similar to Amazon. The purpose of the acquisition is to help Wal-Mart compete with Amazon. I thought this was an interesting example because brick-and-mortar stores are having trouble competing nowadays with online commerce websites. Wal-Mart is showing that it wants to stay competitive by acquiring Jet.com because it will help improve their e-commerce sales. It will be interesting to see if Wal-Mart will be able to close the gap between themselves and Amazon in the future.
The changes with E-Logistics is not an easy change. It takes a culture change across the entire company to be able to use the different logistical values and apply them to various parts in the business. The people that would be unhappy with such a change are the employees that aren’t willing to change their working ways because they are more comfortable with he old way. Otis was able to overcome these issues by implementing the technology overtime, giving instructions too managers and all employees multiple times, monitoring departments to make sure E-logistics is properly used.
A interesting merger that has been agreed upon but hasn’t taken place is the Atena-Humana/Anthem-Cigna merger. The reason why these are interesting mergers is because it would be lowering the number of competitive healthcare insurance companies from 5 to 3. As a result, the government is suing both companies over the mergers because it could be creating a noncompetitive market. The mergers occurred, because it would result in billions of dollars of cost savings. However, there is also possibility that Anthem and Cigna broke their merger agreement due to the argument that the cost savings due to the merger is too great without prior planning/coordination of prices.
One example of a successful company that has effectively used a cost leadership strategy is McDonalds. McDonalds thrives on people who want something cheap and quick, they dont have to worry as much about quality of atmosphere as long as they meet the bare minimum requirements and keep their prices as low as possible. A good example of an effectively implemented differentiation strategy would be T-Mobile’s strategy. T-Mobile appeals to customers by getting rid of contracts, paying ETFs, and in general just trying to be as much unlike their competitors as they possible can be.
One recent example of M&A is Shell’s merger with BG Group. This merger allowed Shell to diversify its operations and expand its offshore drilling capability.
What is an interesting recent example of M&A? Why do they merge with each other?
An interesting merger and acquisition would be between Marriott International and Starwood Hotel and Resort. Marriott just completed the acquisition of Starwood Hotel & Resorts last Friday, according to Wall Street Journal. They wanted to merge with each other because Marriott wants to gain more market share in the hotel market, increased its size and number of hotels and provide different hotel experience to its customers. In addition, Marriott and Starwood can provide a better loyalty program to its customers. I think it is an interesting example because both Marriot and Starwood owns famous hotel brands and they have their own competitive advantage. For example, Starwood owns W hotel, Westin and Sheraton and Marriot owns Ritz Carlton and Residence Inn. Instead of competing to each other, Marriot chooses to merge with Starwood and attracts more customers in the world.
Information management is when the company uses the information it has to create opportunities, improve processes, and keeping it up to date. Information management is important because a company like Otis, which is going from manufacturing and into service, information is key. It allows them to know when something needs to be fixed, manufactured, and maintained. It keeps the company on top of issues before it happens.
There was an interesting M&A when Nike merge with Bauer to create a brand called NikeBauer. Nike wanted to enter into the NHL segment of sports but they’ve failed to keep up with the growth of the technology so nike has decide to exist the NHL industry.
In the running segment of the sports industry, Nike is the cost leader of the industry. They capture a lot of the marketshare. they can reduce their cost because having an advantage of suppliers and also being to hold up their revenue in comparison to other company in the industry.
A recent example of an M&A in the telecom industry is when Charter Communications acquired Time Warner Cable and Bright House Networks which is the country’s 7th largest cable TV operator. The combination of Charter, Time Warner Cable and Bright House will create a leading broadband services and technology company serving 23.9 million customers in 41 states.
A recent example of M&A is Randstad, a human resource service provider, and Monster, one of largest employment websites. Ranstad has acquired Monster in order to use the channels provided by Monster to extend their recruitment services. Randstad and Monster provide different services but these services are complementary to each other. Using Monster’s resources, Randstad hopes to create and provide the most comprehensive capabilities for Human Resource services.
In the automotive industry, Toyota would be in the cost leadership strategy. Although they may not have the lowest priced cars in the market, they are generally known to be affordable for a typical civilian, reliable and practical to carry-out daily activities. A differentiation automaker would be Mercedes-Benz, where they set themselves apart through the luxury status. Mercedes-Benz differentiate their vehicles through performance, luxury and comfort rather than focusing on providing the most affordable cars. Lastly a focused automotive company would be Telsa. Telsa is focused on creating vehicles with innovation. This includes zero emission cars with all electric motors and self-driving capabilities.
A recent example of M&A is Wal-Mart acquiring Jet.com, an electronic commerce website similar to Amazon. The purpose of the acquisition is to help Wal-Mart compete with Amazon. I thought this was an interesting example because brick-and-mortar stores are having trouble competing nowadays with online commerce websites. Wal-Mart is showing that it wants to stay competitive by acquiring Jet.com because it will help improve their e-commerce sales. It will be interesting to see if Wal-Mart will be able to close the gap between themselves and Amazon in the future.
The changes with E-Logistics is not an easy change. It takes a culture change across the entire company to be able to use the different logistical values and apply them to various parts in the business. The people that would be unhappy with such a change are the employees that aren’t willing to change their working ways because they are more comfortable with he old way. Otis was able to overcome these issues by implementing the technology overtime, giving instructions too managers and all employees multiple times, monitoring departments to make sure E-logistics is properly used.
A interesting merger that has been agreed upon but hasn’t taken place is the Atena-Humana/Anthem-Cigna merger. The reason why these are interesting mergers is because it would be lowering the number of competitive healthcare insurance companies from 5 to 3. As a result, the government is suing both companies over the mergers because it could be creating a noncompetitive market. The mergers occurred, because it would result in billions of dollars of cost savings. However, there is also possibility that Anthem and Cigna broke their merger agreement due to the argument that the cost savings due to the merger is too great without prior planning/coordination of prices.
One example of a successful company that has effectively used a cost leadership strategy is McDonalds. McDonalds thrives on people who want something cheap and quick, they dont have to worry as much about quality of atmosphere as long as they meet the bare minimum requirements and keep their prices as low as possible. A good example of an effectively implemented differentiation strategy would be T-Mobile’s strategy. T-Mobile appeals to customers by getting rid of contracts, paying ETFs, and in general just trying to be as much unlike their competitors as they possible can be.
One recent example of M&A is Shell’s merger with BG Group. This merger allowed Shell to diversify its operations and expand its offshore drilling capability.
What is an interesting recent example of M&A? Why do they merge with each other?
An interesting merger and acquisition would be between Marriott International and Starwood Hotel and Resort. Marriott just completed the acquisition of Starwood Hotel & Resorts last Friday, according to Wall Street Journal. They wanted to merge with each other because Marriott wants to gain more market share in the hotel market, increased its size and number of hotels and provide different hotel experience to its customers. In addition, Marriott and Starwood can provide a better loyalty program to its customers. I think it is an interesting example because both Marriot and Starwood owns famous hotel brands and they have their own competitive advantage. For example, Starwood owns W hotel, Westin and Sheraton and Marriot owns Ritz Carlton and Residence Inn. Instead of competing to each other, Marriot chooses to merge with Starwood and attracts more customers in the world.
Refer to:http://www.wsj.com/articles/marriott-completes-acquisition-of-starwood-hotels-resorts-1474605000
Information management is when the company uses the information it has to create opportunities, improve processes, and keeping it up to date. Information management is important because a company like Otis, which is going from manufacturing and into service, information is key. It allows them to know when something needs to be fixed, manufactured, and maintained. It keeps the company on top of issues before it happens.
There was an interesting M&A when Nike merge with Bauer to create a brand called NikeBauer. Nike wanted to enter into the NHL segment of sports but they’ve failed to keep up with the growth of the technology so nike has decide to exist the NHL industry.
In the running segment of the sports industry, Nike is the cost leader of the industry. They capture a lot of the marketshare. they can reduce their cost because having an advantage of suppliers and also being to hold up their revenue in comparison to other company in the industry.
A recent example of an M&A in the telecom industry is when Charter Communications acquired Time Warner Cable and Bright House Networks which is the country’s 7th largest cable TV operator. The combination of Charter, Time Warner Cable and Bright House will create a leading broadband services and technology company serving 23.9 million customers in 41 states.