Hershey And Cadbury

Hershey's offer seems to be more sympathetic by the Cadbury's boards. It seems that the different Corporate Parenting style influence this decision:
http://www.ft.com/cms/s/0/054d6f9c-dbbd-11de-9424-00144feabdc0.html
It is interesting to note the emphasis placed on the merger of cultures:
http://www.ft.com/cms/s/0/4d5c6c2a-dbbd-11de-9424-00144feabdc0.html
Also quite interesting the Kraft's approach which emphasises the feasibility and acceptability of their efforts:
http://www.ft.com/cms/s/0/0ac559f8-dd11-11de-ad60-00144feabdc0.html

The rise and fall of MySpace

A very well written 'reportage' which is a great case study for MySpace and News Corp. There are example for a great variety of strategic management topics. Interesting to note: News Corp. diversification strategy; the process for Merger (and how the target was selected); the impact of the environment; and leadership styles.

The rise and fall of MySpace
By Matthew Garrahan
Published: December 4 2009 15:26 Last updated: December 4 2009 15:26

In summer 2005, having spent the best part of four decades ­building a newspaper, film and television empire, Rupert Murdoch decided that the time had come to get serious about the internet. As founder and chairman of News Corporation, one of the world’s biggest and most powerful media conglomerates, Murdoch controls an eclectic portfolio of businesses ranging from The Sun newspaper to the movie studio 20th Century Fox. Yet with young people “watching less television and reading fewer newspapers”, as he observed that summer, News Corp desperately needed a bigger presence online.

Read the whole article at: http://www.ft.com/cms/s/2/fd9ffd9c-dee5-11de-adff-00144feab49a.html

EU moves towards common patent system

EU moves towards common patent system
European ministers say they have agreed on a plan to introduce a common EU-wide patent system that could save companies millions of euros.
Sweden's foreign ministry says industry ministers reached a deal on the main elements of the EU patent and setting up a single European Patent Court.

Read the whole article at: http://news.bbc.co.uk/1/hi/world/europe/8396279.stm

Google set to offer property dimension to UK mapping

This is a diversification that does not seems to be 'relevant' but it actually builds on corporate parents' core skills, it will create synergies between Google's core business and this new one.

Google set to offer property dimension to UK mapping

Google is set to launch a property dimension to its UK mapping system.
The new service will allow both estate agents and private sellers to put their property as an overlay on Google Maps.

Read the whole article at: http://news.bbc.co.uk/1/hi/technology/8394252.stm

Dutch car maker plans move to UK

This is a good example of an International Strategy being developed based to ease operations and reduce costs.

Dutch car maker plans move to UK

A luxury sports car maker based in the Netherlands has announced it is moving an assembly plant to Coventry.
Spyker Cars makes up to 50 luxury cars a year, mainly for the US market, with prices starting from about £180,000.

Read the whole article at: http://news.bbc.co.uk/1/hi/england/coventry_warwickshire/8372121.stm

Climate Change Study

Climate change and/or global warming are regularly considered as Macro-External Environmental (-uncertainy) factors. This is a report by the Institute of Mechanical Engineers, which acknowledges the need to go beyond mitigation strategies and to take into consideration adaptation and remediation (=direct air carbon capture, geo engineering).


Read the whole article at: http://www.imeche.org/NR/rdonlyres/77CDE5E4-CE41-4F2C-A706-A630569EE486/0/IMechE_MAG_Report.PDF

BA and Iberia agree merger

Good example of an Overcapacity Merger.
Points to note:
-the friendly terms of the 'union'
-the fact that the companies will maintain their structure
-the emphasis on the Synergies to be gained,
-

BA and Iberia agree merger

By Pilita Clark in London and Mark Mulligan in Madrid
Published: November 12 2009 12:02 Last updated: November 13 2009 09:02

British Airways and Iberia on Thursday night agreed the terms of a merger to create Europe’s third-largest airline by revenue, one of the biggest deals in the global aviation industry.

But the two airlines have agreed that Iberia will be able to terminate the accord if it is unhappy with BA’s handling of its swollen pension scheme, which has been one of the sticking points in the deal, first announced in July last year.

Read the whole article at:http://www.ft.com/cms/s/0/ee333056-cf7f-11de-b876-00144feabdc0.html?nclick_check=1

Kraft's bid for Cadbury 'derisory'

Hostile Acquisition, if it goes ahead, the integration will be challenging to manage. Interesting to note that Kraft highlights the potential synergies while Cadbury suggests that Kraft is a conglomerate with a Portfolio parenting style. Also, interesting how the strategic direction is emphasised: Cadbury claims that Kraft has a slow growth business model.

Kraft's bid for Cadbury 'derisory'

pa.press.net, Updated: 09/11/2009 15:54A £9.8 billion hostile takeover bid from US food giant Kraft has been labelled "derisory" by Dairy Milk maker Cadbury. A £9.8 billion hostile takeover bid from US food giant Kraft has been labelled "derisory" by Dairy Milk maker Cadbury.

Read the whole article at:

'Road trains' get ready to roll

Good example of how the evolution of a Technology (Macro External Environment) can influence an entire industry. It is also useful to note that this Technology was development by European Funds (Regulatory Macro External Environmental factor) due to Environmental and Socio-Cultural trends.

'Road trains' get ready to roll
Road trains that link vehicles together using wireless sensors could soon be on European roads.
An EU-financed research project is looking at inexpensive ways of getting vehicles to travel in a 'platoon' on Europe's motorways.
Each road train could include up to eight separate vehicles - cars, buses and trucks will be mixed in each one.

Read the whole article at: http://news.bbc.co.uk/1/hi/technology/8349923.stm

Interesting to note how one strategic option defines the long term strategic direction of Renault.

Renault's electric-car gamble

Mr Ghosn bets the company
Oct 15th 2009From The Economist print edition

The French carmaker aims to be the first big producer of zero-emission vehicles
OVER the past few weeks Renault has been giving politicians, journalists and big commercial customers across Europe the chance to drive a slightly odd-looking battery-powered vehicle based on its Kangoo, a small van. Like most of the latest electric-vehicle prototypes, the Kangoo Be Bop ZE, as it is called, drives briskly and quietly. Unlike most of them, it is a thoroughly practical proposition. It provides plenty of space for five people and their luggage, has a range of about 160 kilometres (100 miles)—and, crucially, when it goes on sale in less than two years’ time, it will not cost a fortune.

Read the whole article at:http://www.economist.com/businessfinance/displaystory.cfm?story_id=14662050

Henry Mintzberg on managing

Henry Mintzberg is one of the most influential researchers and authors on strategy.

Listen to his interview with the economist at: http://audiovideo.economist.com/?fr_story=86aec0aa817a9003c3484cf810141d082d76fb7a&rf=bm

How to change the system

Ackoff is one of the founders to modern strategic thought.

How to change the system
Nov 3rd 2009From Economist.com
In praise of the ideas of Russ Ackoff
IT IS hard to imagine a less enticing title for a book than “Introduction to Operations Research”. Yet Russ Ackoff, one of the authors of this tome of 1959, who died on October 29th aged 90, did not just help to define a nascent branch of industrial engineering. He wrote 30 other books, becoming one of the most influential management gurus of the 20th century in the process. His ideas about systemic thinking are vitally important today if the world is to come out of the current economic crisis in better shape than it went into it.

Read the whole article at: http://www.economist.com/businessfinance/displayStory.cfm?story_id=14790477

Climate rifts ahead of G20 talks

Several Macro External Environment factors are determined in these G20 meetings.

Climate rifts ahead of G20 talks

Disputes over climate change and stimulus spending have emerged ahead of a summit of G20 finance ministers.
Ministers of the 20 leading economies are meeting in St Andrews, Fife, to discuss the nascent global recovery and how to reduce carbon emissions.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/8347786.stm

Rich Germans demand higher taxes

An interesting social phenomenon? Could this became a trend?

Rich Germans demand higher taxes
A group of rich Germans has launched a petition calling for the government to make wealthy people pay higher taxes.
The group say they have more money than they need, and the extra revenue could fund economic and social programmes to aid Germany's economic recovery

Read the whole article at: http://news.bbc.co.uk/1/hi/world/europe/8321967.stm

National Express and Stagecoach

Good example to highlight the difference between Merger and Acquisition.

National Express 'did not invite' Stagecoach deal
by Robert Lindsay

National Express today disputed claims that it had invited a merger approach from its rival, Stagecoach.
Earlier today, Stagecoach said it had submitted a letter on October 16, “at the invitation of National Express”, detailing the terms of a deal.

Read the whole article at: http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article6880710.ece


Also interesting notes on the fund raising process for an Acquisition.

Rival renews National Express bid

Stagecoach has made a fresh offer to buy rival National Express, despite a consortium pulling out of takeover talks last week.
The group, comprising private equity firm CVC Capital and National Express's largest shareholder, the Cosmen family, withdrew its £765m offer on Friday.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/8313780.stm

Ryanair closing Manchester routes

Good example on the power of the suppliers./customers. Airlines can be seen as suppliers or customers for Airports. It is interesting to note the fact that Ryannair was negotiating the airport taxes.

Ryanair closing Manchester routes

Ryanair is to switch or close nine of the 10 routes it currently operates from Manchester Airport, blaming the airport's refusal to lower its charges.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/8205445.stm

BA scraps the short-haul sandwich

Cost-cutting practices in company that does not compete on price.

BA scraps the short-haul sandwich

British Airways is to scrap all meals, except breakfast, on its short-haul flights in a bid to save £22m a year.
Passengers on flights after 10am, which last less than two-and-half hours, will only be served drinks and snacks. They will not have the option to buy food.


Read the whole article at: http://news.bbc.co.uk/1/hi/business/8174009.stm

UK set to reform bank regulation

The UK government is set to announce its plans to reform the financial system to prevent future crises.
But the White Paper will leave many questions unanswered about the role of the key regulators. The Lib Dems say it is unlikely to go far enough.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/8139752.stm

Google to venture into start-ups

M&A as R&D. It is interesting how Google tries to expand in all directions.

Google to venture into start-ups

Google is searching for "the next big thing" in technology as it announces its latest effort, Google Ventures.
Its new venture capitalist arm pledged to help find and develop "exceptional start-ups", offering early stage investments to a range of new firms.
Areas it will look at include consumer internet, software, clean tech, bio tech and healthcare.


Read the whole article at: http://news.bbc.co.uk/1/hi/technology/7973783.stm

Vodafone and 02 to share networks

This is an unusual type of collaboration. It is hard to share infrastructure and at the same time compete. I have a suspicion that this is the first stage of an integration or even a merge (?)...

Vodafone and 02 to share networks

Mobile phone firms Vodafone and 02 parent Telefonica are to pool their network infrastructures in the UK and three other European countries.
The move will save both firms many millions of pounds in operating costs, and Telefonica admitted "the current economic situation was a catalyst".

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7959133.stm

Profits up at luxury group Hermes

This is a good example, of how developing international strategies spreads the risk of unexpected events (economic crisis). It is even more interesting because this is another luxury brand that reports profit.

Profits up at luxury group Hermes

French luxury goods firm Hermes has said profits rose in 2008, shrugging off concerns about the impact of the global economic downturn.
Shares gained 3.1% in Paris as its profit of 290m euros ($395m; £273m) was higher than analysts had forecast and the company increased its dividend.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7952666.stm

Concern over 'e-cigarette' sales

Substitute product?

Concern over 'e-cigarette' sales

Ministers are being urged to restrict the sale of 'electronic' cigarettes amid fears they could be harmful.
Retailers say they are a healthy alternative to real cigarettes because their users can inhale nicotine without tar, tobacco or carbon monoxide.

Read the whole article at: http://news.bbc.co.uk/1/hi/uk/7941021.stm

Drug firms in $41bn giant merger

The pharmaceutical industry is one of the best examples on how market forces lead to consolidation and M&As.


Merck is to buy rival Schering-Plough in a $41.1bn (£29.4bn) deal, creating one of the world's biggest drug companies. The merger unites the makers of cholesterol drugs Zetia and Vytorin at a time of falling sales.

Read the whole the whole article at: http://news.bbc.co.uk/1/hi/business/7932264.stm

Facebook to let users give input on policies

Interesting to note the power of customers who at the same time they are suppliers. Facebook like many other networking sites has been developed by its customers who create applications etc.

Facebook to let users give input on policies

By BARBARA ORTUTAY – 1 hour ago
NEW YORK (AP) — Facebook is trying its hand at democracy. The fast-growing online hangout, whose more than 175 million worldwide users could form the world's sixth-largest country behind Brazil, said Thursday that those users will play a "meaningful role" in deciding the site's policies and voting on changes.
Facebook is trying to recover from last week's policy-change blunder, which prompted tens of thousands to join online protests. At issue was who controls the information, like photos, posts and messages, that people share with their friends on the site.

Read the whole article at: http://www.google.com/hostednews/ap/article/ALeqM5hVVOyYn6NLet4lG2QMp55op-x3jQD96JTD3O3

March launch for 'cheapest car'

Could this be the answer to the problems of the automotive industry? The low frills strategy has restructured the airlines industry; could a similar approach do the same for the automotive? It would be interesting to examine whether Tata could launch this product in more mature industries like Europe or US.

March launch for 'cheapest car'
India's Tata Motors has said its Nano, billed to be the cheapest car in the world, will be launched next month.
The company said the launch would take place on 23 March in Mumbai. It will start taking orders in mid-April.
The basic model is expected to cost about 100,000 rupees ($1,984, £1,393). The car was due to have been launched last year.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7911749.stm

Soros sees no bottom for world financial "collapse"

Soros sees no bottom for world financial "collapse"
Sat Feb 21, 2009 1:22am GMT
NEW YORK (Reuters) - Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.
Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.

Read the whole article at: http://uk.reuters.com/article/businessNews/idUKTRE51K0AV20090221

Mobile phones take to the skies

Does this make sense? A low-frills, cost leader company to differentiate in such as a great scale that even the likes of BA do not... Interesting to note how the company uses customer feedback (you can read and compare with this commentary on the US automotive industry http://www.businessweek.com/magazine/content/09_06/b4118032619547.htm?chan=innovation_auto+design_top+stories)

By Colette Hume BBC News

Picture the scene - you're on the plane on your way to a dream holiday destination. Take-off was smooth and the drinks trolley is on its way down the aisle.
The mood is complete - then a mobile phone rings.
For some that sound spells heaven, for others hell, but from now on it's a reality for thousands of Ryanair passengers

Read the whole article at: http://news.bbc.co.uk/1/hi/uk/7900802.stm

Microsoft to launch retail chain

It is quite interesting to note how vertical integration is expected to great greater synergies across the different SBUs for MicroSoft.

Microsoft to launch retail chain

Computer software giant Microsoft has announced plans to open its own stores, at a time when many other retailers are struggling in the economic downturn.
The company plans to sell computers installed with Microsoft software and other products, Microsoft chief operating officer Kevin Turner said.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7889099.stm

India Planning $10 Laptop

It is interesting how the local needs of emergement markets can influence the entire industry.

India Planning $10 Laptop
By Charlie Sorrel February 03, 2009 8:41:07

You thought the $100 laptop was cheap? How about a $10 laptop? That's the promise of the unfortunately named Sakshat computer (it actually means "before your eyes"), to be built in India as soon as the designers get a manufacturer signed up.
Details are scarce, but at least the people behind it have pedigree. The Indian government is funding it, and the design is from scientists at science and technology institutes in Vellore, Madras and Bangalore. The price of making this machine is now around $20, but should fall to half that as production runs get longer.

Read the whole article at: http://blog.wired.com/gadgets/2009/02/indian-planning.html

Fast bucks: how Porsche made billions

It is fascinating to read how a company can prosper within a financial crisis period. Porsche is definitely an interesting case study and at the same time it provides good examples on the appointment of a leader, without any relevance and capabilities in the sector (think our 'leadership expertise'), has created unexpected sources of income.


Fast bucks: how Porsche made billions
By Emily Hughes BBC Money Programme

Porsche is world famous for its iconic sports cars.
But car manufacturing isn't the only thing the company is good at.
Last year it made six times as much on the stock market as it did making cars.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7843262.stm

Fiat and Chrysler create alliance

Example of strategic alliance. It is interesting to note how the two companies seek to get different types of benefits from this collaboration: access to knowledge (efficient engines) and access to the largest market.

Fiat and Chrysler create alliance

Italian carmaker Fiat and US giant Chrysler have agreed to create a global strategic alliance, the companies said in a statement.
Under the terms of the deal, Fiat will get a 35% stake in Chrysler. In return, the US firm will get access to Fiat's fuel-efficient vehicle technologies.
It is hoped the agreement will lead to "substantial" savings for Chrysler.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7839542.stm

Waitrose to add 4,000 positions

'Supermarkets are one of the few sectors creating rather than shedding jobs'. It is interesting to note how the sector of supermarkets deals with economic crisis through expansion and economies of scale.

Waitrose to add 4,000 positions

Supermarket chain Waitrose says it will add 4,000 new jobs as it embarks on an expansion drive.
The chain has entered an agreement with The Co-operative Group to buy 13 stores and Waitrose said it would open a further nine new branches.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7833065.stm

Citigroup to split as losses grow

That's an interesting 'portfolio approach' management example, for two SBUs which in theory had could develop synergies.


Citigroup to split as losses grow

Citigroup was bailed out by the US government in November
Struggling US banking giant Citigroup has announced plans to split the firm in two, as it reported a quarterly loss of $8.29bn (£5.6bn).
It said it would realign into two new firms, Citicorp and Citi Holdings.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7833090.stm

Aldi moves into holiday market

One could think that this is an unrelated diversification: holiday packages by a supermarket chain. But this is not the first retailer to have such a SBU (Co-op has been offering similar services with a different business platform though). It is interesting to note how retailers can develop synergies across completely different SBSs.

Aldi moves into holiday market

Cut-price supermarket Aldi has begun to offer beach holidays and city breaks to cash-strapped consumers.
The move comes as the travel industry enters its busiest period of the year, with 20% of summer holidays usually booked before the end of the month

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7820008.stm

JD Sports and Jessops sales rise

Good strategies?

JD Sports and Jessops sales rise

JD Sports and the camera chain Jessops have bucked the trend on the High Street, reporting that sales during the Christmas period were up on last year.
JD Sports said that in the five weeks to 3 January sales in stores open more than a year were up 2.8%.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7819452.stm