Wednesday 27 January 2016

Benefits a CFO Gets from M&A Research Solutions

Mergers and acquisitions continue to be a popular and highly efficient strategy for corporate development. This represents a complex phenomenon that attracts the research attention and interest of a wide range of management disciplines that encompass the financial, behavioural, strategic, cross-cultural, and operational aspects of this high-risk, challenging, yet highly rewarding activity. The main focus of strategic management researches in the M&A field have always been on the determination of process and strategic factors that could explain the performance variance between individual mergers and acquisitions—something that is extremely beneficial for CFOs in terms of identifying acquisition targets, conducting industry analysis, constructing financial models, and capturing investor and street opinion on similar transactions. Accurate and comprehensive research and study throughout the entire M&A process is extremely important to ensure long-term success, regardless of the industry the business is in.

Every merger and acquisition starts with a tender offer. The M&A process typically begins with the acquiring company discreetly and carefully buying up shares in the company being acquired or building a position in the target organisation. The tender offer is then advertised in the business press, along with the offer price and the date by which shareholders in the target company must respond with an acceptance or rejection.

The target company's response could be one of several things: acceptance of the offer and its terms, an attempt to negotiate, an execution of a poison pill or a hostile takeover defence, or finding a white night that will offer an equal or higher price than what the hostile bidder is offering. It is precisely because of these possible responses that careful research and evaluation must be done before making any move towards an M&A. Because M&As are extremely complex, premature mergers and acquisitions that didn't go through rigorous study fail miserably and usually incur more loss than gain for companies.

Thursday 7 January 2016

Benefits of Sustainable Supply Chain Management to Clients and Suppliers

Supply chain sustainability refers to a holistic view of the processes and technologies involved in supply chain management, going beyond the focus of inventory, delivery, and traditional perspectives on cost. It is an emerging and increasingly accepted philosophy on the basis of the ideal that socially responsible practices and products are not just beneficial to the environment, but are essential to long-term profitability. Large global organisations are responsible for managing the sustainability of their supply chains and implementing practices that work to reduce energy cost and wastage and incorporates green technologies as they collaborate with supply chain partners, both internally and externally to re-examine all delivery methods, products, services, and measurement and packaging systems.

Sustainable supply chain management is beneficial not only to clients but also to suppliers as it effectively reduces supply chain disruptions, prevents reputational damage, and ultimately helps improve business-supplier relationships and overall performance. The sustainability of a business' supply chain offers a wide range of internal and external incentives. Choosing a long term approach to sustainability allows for an infinite trend of productivity and growth opportunities. It can lead to many positive drivers for innovation as well as a great many sustainable initiatives. Cost savings, for instance, can be found in many areas and stages of the supply chain, such as savings through reduced amount of packaging and sourcing ingredients or raw materials from sustainable sources.

As long as sustainability efforts fits into the overall standards and ethic of your brand, sustainable supply chain management is definitely something that you should implement as it benefits the business by making it more efficient, wasting less, and spending less money on resources, all of which translate to a more sustainable and in turn, more profitable operation. Greater progress and growth can be expected by implementing sustainable supply chain management.