AOL sees revenue growth for first time in eight years

'In the fourth quarter, advertising revenue - a key measure for the company as it moves away from subscription-based dial-up services to focus on its media outlets such as the Huffington Post - rose 13% to $410.6m.'

Read the whole article at: http://www.bbc.co.uk/news/business-21384583

RBS Sells Aviation Business to Sumitomo Mitsui for $7.3 Billion

This is a good example of how companies that struggle with their finance would develop their strategy as returning to their core competencies and main activities. This is an interesting example of a company that tried to create synergies between two largely unrelated business units. In theory, Banks/Financial Institutions with the large number of clients could create synergies in all sort of business, however this case shows that the lack of expertise (and probably the economic climate did not allow for the synergies to be developed); it is worth mentioning that aircraft leasing is a considerably larger business in N. America which has never really developed in Europe.


RBS Sells Aviation Business to Sumitomo Mitsui for $7.3 Billion

By Gavin Finch and Takahiko Hyuga

Jan. 17 (Bloomberg) -- Royal Bank of Scotland Group Plc is selling its aviation leasing unit to Sumitomo Mitsui Financial Group Inc. for about $7.3 billion, the biggest disposal by the state-owned lender since its U.K.-government bailout in 2008

Read the whole article at: http://www.businessweek.com/news/2012-01-17/rbs-sells-aviation-business-to-sumitomo-mitsui-for-7-3-billion.html

Hewlett Packard to exit computing and buy Autonomy

This is a good case study for a number of strategic management concepts:
i) planned and emergent strategies: a few months ago HP had announced that they will concentrate on WebOS which has not produced the expected results; HP is quick in changing strategy, even if it must be very financially painful for them.
ii) exit from its cash-cow business: selling pc BU which is considered the biggest in the world. Interpreting the justification from a strategic management perspective, it seems that the software segment has larger profit margins. Interesting to note that this refocusing is a combined with the acquisition of Autonomy.
iii) the refocusing of the business is based on the expertise of its new CEO who has joined from SAP.
The article draws the parallel between HP and IBM a decate ago, but there is a fundamental difference; IBM was not No. 1 when decided to diversify. Also, HP's history of mergers has shown that it is not the most adaptable and flexible company.

Hewlett Packard to exit computing and buy Autonomy

Hewlett Packard has confirmed plans to stop making PCs, tablets and phones, in order to refocus on software.
It has also emerged that the US company has agreed to buy UK software firm Autonomy for £7.1bn ($11.7bn).

Read the whole article at: http://www.bbc.co.uk/news/business-14584428

News Corporation and BSkyB takeover

Let aside the political issues of this takeover or merger, what is interesting from a strategic management perspective is the efforts of News Corp to develop synergies (http://www.bbc.co.uk/news/business-14104397) between different media platforms. This is a clear corporate direction (see a good review of the various attempts http://www.guardian.co.uk/media/organgrinder/2011/jan/05/news-corp-bskyb-david-elstein). An interesting question is why BSkyB was not part of the News Corp from the beginning since it was established by the same company (for a brief history/evolution of the company see: http://en.wikipedia.org/wiki/File:UK_satellite_TV_evolution_vector.svg), which should probably be attributed to risk management by News Corp. The other point which worth taking is that merger is the only strategic option as the legislation would not allow for collaborations and synergies via some sort of strategic alliance.

Microsoft's Bing deepens ties with Facebook

Good example of how Microsoft creates synergies between one of its SBUs (search engine) and facebook.com (which they do not own 100% but they are one of the main shareholders). This actually workds as a good example of how strategic alliances work, too. Interesting to note, that Microsoft has spent almost a decade trying to catch up Google and it seems that are not capable of developing the reource/capability in terms of technology and they are definetely lacking in terms of reputation; however creating synergies with the most popular networking site could help them boost Bing's popularity and usage.

Microsoft's Bing deepens ties with Facebook

Microsoft's Bing search engine has begun showing US users which sites and products their Facebook friends like.
The move is an attempt to make web search results more personal.
It is part of a four-year alliance between the two companies and marks another step in Microsoft's attempt to displace market leader Google.

Read the whole article at: http://www.bbc.co.uk/news/technology-11540661

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

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

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:

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