Strategic And Planning Management Essay Writing Help Online: Hotel Management: Shareholders acquisition strategy – Strategies for shareholders
Question??
Evidence indicates that the shareholders of many acquiring firms gain little or nothing in value from the acquisitions. Why, then, do so many firms continue to use an acquisition strategy?
Answer the question frame is::
Introduction:
Acquiring the organization is one of the most important events in the finance and this will also depend on the economy. The acquisitions which are carried in successful way will increase the more profit and stock price.Hotel can be considered as one of the most booming industry in the world. It is decorative place for providing lodging on the short term basis for the people. The travellers and visitor from all over the place in the world accommodate themselves in the star hotel for the luxury afforded by the concern hotel. It also gives more weightage for the circumference and for the country. The hotels ranges from small level to the larger level based upon the strategy. The brand hotel will operate the management by designing structure with the general manager to take over all the responsibility and monitor the daily activity carried out in the hotel. So many organizations still they are in the competition and attracting all the class of people by exploring the special features with the good infrastructure and service by altering the strategy management based upon the trend.Integration is the basic key factor for the acquisition. As per Andrade the overall success of the organization includes the business of mainstream by investing the resources at the corporate and function levels. The management plays dominant role not only for the hotel industry it also applicable to all the industry. The strategic management is the key factor for all the organization and industry which acts as the base for the success. It also helps to attract the people and shareholders to invest on their organization for aligning the better structure to a top level. Which in turn gives profit for the shareholder and some time it create loss for the investors. According to Brown the shareholders and investors plays vital role not only in the hotel industry they are contributing fund in various sector like oil gold medical bank etc. the shareholders are the key factors for the industry to shine and glitter. Whenever they invest more funds towards the organization it keens to develop and attain stable growth.
Strategy of shareholders:
As per Scholes every shareholders want to increase their fund by investing on the organization based upon the economy, capital and market. They will invest the money on the firm which will give a huge profit in the future by considering all the market condition. The Acquisition is specially structured to achieve the desired objective within the specified constraints resource with the technical management. The acquisition strategy is complete frame work by leading the program by planning controlling staffing and organizing. According to Mulherin the shareholders strategy is focused on the constraints and the program objectives with the innovation and modifications. The strategy helps to balance the effectiveness and the cost through the technology development. The shareholders designed a strategy to achieve the possible market value of the organization and the capital resource among the competitors. It also focuses by monitoring the strategy chosen to achieve the desired objectives. The main motive of the shareholder is to get profit by investing the funds on the organization with the chosen strategy. Normally the firm has numerous stake holders shareholders fund lenders customers employees to attain the maximum wealth. The firm has to tackle all of them by balancing each other with designed strategy management. The stability of the organization is depends on the shareholders and the stake holders. When the organizationbalance equally automatically the firm will achieve the desired result. The financial objective of the shareholders is to gain wealth by investing in the profit making organization. The wealth of the shareholders is measured by the return which they have invested in the company. The good organization should possess fair relationship with the shareholders, advertiser, customers, and suppliers and with the government. The shareholders will rotate the money by investing with the various organizations by considering the major aspects of capital, market, growth and the economy. When they are satisfied with the all those criteria they start to invest. Simultaneously the value of the share also increase when shareholders rush to buy the share of the particular organization which in turn increase the value of the share and the investors get huge profit when the sells the share to the other people.
Downfall of shareholders Acquisition:
As per Alfredmany shareholders will prefer for the acquisition because it has greater advantage to gain huge margin. They don’t want to start from the base to achieve the success in their business. Instead of investing the money to start the new organization they will prefer to invest by acquiring the other successful companies. When the shareholder chooses a correct strategy for their acquisition they will turn into successive path. The good strategy alone helps them to proceed further in their business. Many of theshareholders fail to trace the organization structure and the strategy what they are following and it is related to long term success or for the short term achievement. As per Jarrell the organization shouldhave good relationship with the existing share holder and with customers. Because these are the key factors for the success of acquisition. And also forecast the business with the current strategy to long term process. So many shareholders acquired the firm by investing the amount and at the last they are fail to see the margin in the business. The main reason for the failure is the poor strategy management. When the acquisition done by the shareholder it is necessary to replace the existing management or they should align the management according to the current market condition. When they shareholder continue their business with the existing management they will not get sufficient profit or sometimes it will lead to the downfall situation.so it is more important to alter the entire firm to the correct strategy for the growth of the company. Moreover they should also maintain the fair relationship with the existing customer and government bodies to lead the organization forward. And also it will help the management to grab new customer for the business. Many shareholders lost the fund by the improper acquisition without noticing the market strategy and the management of the organization. And sometime they fail to exhibit the good strategy in the organization which affects the market share and the customer to the downfall situations.
Acquisition successful strategy:
The acquisition is normally followed by the shareholders to gain surplus funds. The acquisition happens when the organization attains desired goal of profit and the relationship with the government and shareholders. Most of the shareholder will focus on the organization which deserves the customer satisfaction with increasing market share. More over the firm should also take care the employees and the welfare of the management. They should also possess good relationship with the suppliers andtakecare the responsibility of the society. The organization should reach the desired standard level both with product quality and reliability. The affordable price is the key factor to achieve the satisfaction of the customer objective and also increase the market share. As per Mitchell acquiring the customer is the major important strategy for the shareholders. One of the greatest examples of acquisition is cisco. It has been so successful with their acquisitions. They focused on the main areas to achieve the success. Another major factor of success is buying the supplier at very low cost because it is aim to alter the margin profits than the growing revenues. For example if the product is manufactured by the different components one way is to improve the profit of corporate is buying the main suppliers. Which helps to reduce the cost with the greater value and availability of supply? Technology also plays important role of acquisition of shareholders because the technology should be designed in a well versed structured to achieve the good margin in the market due to the competition. The advantage of capturing the technology is to save the money of research and development and the time which is spent on the research. After the acquisition it is necessary to focus on the company products to improve the growth and the profitability. They also implement good sales force to achieve the trade mark of successful growth. It is an added advantage for the acquisition the existing channel of sales and distribution of the organization will provide a good base for the company to bounce back to create a new customers this will also help them to achieve the success.Theestablished credibility and momentum will help them to acquire more customer. It is also one of the greatest methods to sell the new products with the existing products due to the trademark. The cisco is one of the successful acquisition companies in the world. It is one of high level company and they are in the field of hardware and software services. Cisco system has acquired more than fifty companies in the world by with the empowering strategy. And the stock price also rose to the peak position. It is a great achievement for the company to progress in a good growth. The success is happened only with the core strategy of integration. They have established platform in the core field. Still the cisco company is hunting for the acquisition because they deserve the potential to grab. Sometime the larger company has the potential of wealthy so they command larger multiples of valuation. As per Moorethe motive of the acquisition is to impress and attract the public capital as well as the equity groups. In today’s environment the growth of the revenue is very difficult with the economic condition but making the stable base will provide a good business through the acquisition. The acquisition happens onfocusing the customers buying and buying the organization with the developed technology. For example the mobile company nokia has acquired the Symbian limited as a best platform to gain the profit for its mobile device. The proper strategy and good planning always end with the good result in the acquisition so that is the reason share holder still continuing the acquisition strategy in the business.
Conclusion:
The objective of this information is to investigate the organization growth, market value and share price before acquiring the organization by the shareholders. There are several; factors are behind the acquisition which may affect the growth and the performance of the organization. The strategy management should be evaluated with the firm and also helps to measure the value of the economic firm with the profitability and the risk. It has been clearly founded that the performance of long term acquiring firm is directly proportional to the economic condition. In the past the acquisition goes negatively when trying to acquire the larger firms because of post-acquisition profitability. It is necessary to concentrate on the performance improvements of the chosen strategy and also depends on the planning that goes well for the acquisition strategy. The acquisition should be done only through the verification of recent price, public float with the market cap and outstanding shares. This are the factors help the shareholders to run the organization into healthy stage. So many of them will hesitate to take cover the company of the existing management. Losses have been huge after the acquisition with the improper strategy. So the strategy should be well structure with the respect to all the direction for the successive growth. Many companies and shareholders finding the way to expand their business into larger level through the acquisition. The investor can take the greater advantage by reducing the cost and expanding the operation to the larger boundaries and exploring the market power among the competitors. Sometime the investors can also fail due to the lack of management the non-stability will overcome the practical hurdles and this will cause the investors a loss of revenue from day to day operations. It has been concluded that acquisition can be done only through the successful strategy management.
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