StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Expansion and Merger - Research Paper Example

Cite this document
Summary
Management Research Paper: Merger & Expansion: The fictitious company chosen for this exercise is a medium-sized investment bank called Armor Bank, which has a footprint in states in Southern United States. The bank has plans for penetrating markets in the rest of the country and is mulling options for a merger…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.1% of users find it useful
Expansion and Merger
Read Text Preview

Extract of sample "Expansion and Merger"

Download file to see previous pages

But empirical evidence points to the fallacy of this theory. As it is, government intervention is only sought when there is a major economic crisis, like during the 2008 Wall Street crash. It is a bit unfair for the general population that tax-payer money is doled out to greedy corporations when they are in trouble. At the same time, during the boom their behavior is not regulated in the name of Laissez-faire. The activities of the financial services industry being the cause for the current economic slowdown, it would be prudent to call for greater government regulation in this area.

The prospects and possibilities of Armor Bank for further expansion will have to be weighed in the broader context of the stability and long-term sustainability of the economy. 2. Justify the rationale for the intervention of government in the market process in the U.S. The American economy had always seen cycles of boom and bust. It is fair to say that the domestic and economic policies framework of various American Presidents of past have been generally business friendly and thereby been lax on regulation.

The most recent economic crisis witnessed across the world was precipitated by financial institutions in the United States. The collapse of the Lehman Brothers in 2008 brought to light the reckless and greedy decision making of top executives in this industry, leading to the inevitable collapse. In this context, the idea of regulation as a legislative means to “encourage the things society as a whole likes (such as economic development) and discourage the things it doesn't (thus, the sin tax)” (Rosenzweig, 2007) is the way to go.

As globalization and technology advance, “financial institutions become the focus of additional regulation; new regulations might be seen as a way of thwarting money laundering, achieving community development goals, or channelling credit to needy borrowers, for example. Such uses are legitimate reasons that lead regulation toward its true mission - to help establish the boundaries within which an industry can operate." (Jordan, 2001) In the prevailing regulatory environment in the United States, there are only limited hurdles for corporate consolidation.

This means that there is a constant flux of merger & acquisition activities in corporate America. But such a free reign had not helped strengthen the general economy, beyond the private sector. Hence, there is credence to the view that greater control should be exerted over M&A activities. This is especially true with respect to the financial services sector that bears major culpability for the current decline of the economy. 3. Assuming that the merger faces some threats and that the industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capital projects.

Expansion via capital projects is a relatively more challenging exercise than finding opportunities for mergers. Yet, this could be achieved via starting operations in new and unexplored verticals within the financial services sector. In the context of Armor Bank, if the company could consolidate itself into a financial holding company, new opportunities for growth beckon, including “banking and insurance, investment and commercial banking, mortgage banking, trusts, and annuities…even the lines between banking and commerce blur.

" (Jordan, 2001) But managing a broad portfolio will bring

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Expansion and Merger Research Paper Example | Topics and Well Written Essays - 1000 words”, n.d.)
Expansion and Merger Research Paper Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/management/1456167-expansion-and-merger
(Expansion and Merger Research Paper Example | Topics and Well Written Essays - 1000 Words)
Expansion and Merger Research Paper Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/management/1456167-expansion-and-merger.
“Expansion and Merger Research Paper Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1456167-expansion-and-merger.
  • Cited: 0 times

CHECK THESE SAMPLES OF Expansion and Merger

Merger, Acquisition, and International Strategies

This paper under the headline "merger, Acquisition, and International Strategies" focuses on such a fact that merger and acquisition refer to mechanisms by which companies combine in order to promote their business interests to pursue a common market.... nbsp;… A merger refers to the mechanisms by which a two or more companies consolidate their resources to form a new entity while acquisition refers to a situation where one company purchases another without necessarily establishing a new company....
10 Pages (2500 words) Case Study

Federal Trade Commission and Merger

Running head: federal trade commission and merger - arbitron, nielsen 20th November 2013 Introduction In order to face off their competitors in the current business environment that is characterized by stiff competition, various firms within the same industry or in different industry have taken initiatives to form a merger.... This implies that for any merger to be acceptable it must comply with the business laws as provided by the government.... This paper aims at discussing the merger between Arbitron, and Nielsen companies and the implications of FTC on the merger....
10 Pages (2500 words) Research Paper

Preliminary investigation report

The company envisions itself as a major player and as a quality developer of web-based software solutions and services for natural resources and land managers in the local market and eventually in the global market.... Aside from this, the company wants to be recognized as an expert in terms of consultancy services, a training provider and software customization. … This preliminary investigation was prepared by the Information Technology department of the company in efforts to improve productivity and earn more profits by boosting the sales of the company by boosting its advertisement efforts....
4 Pages (1000 words) Essay

Corporate Governance

The author of this essay "Corporate Governance" focuses on the definition of governance.... According to the text, the Organization of Economic Cooperation and Development (2004, p.... 17) have defined governance as “the system by which business cooperation is directed and controlled.... hellip; The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs”....
12 Pages (3000 words) Essay

Merger of HSBC and Oman International Bank

Based on liquidity ratio, market price per share, profitability ratio, and earnings per share it is seen that the banks were doing fine until the merger year.... However, since a slow growth and unsatisfying profits were registered, it is recommended that the company values its… In addition, the merger should consider the decrease in operations' costs as they affect the profitability ratio indicating signs of increased revenues with little net income.... The motive of this type of merger is to cut down on competition and maximize on factors that can improve the economic footing of both companies....
21 Pages (5250 words) Essay

Dunns Emporium Experiences Growth

Majority of the employees of The Deli and Dunns has accepted the merger and is welcoming the new leader of the organization through some of them are not happy with the decision.... Joseph Dunn needs to act as a motivator and encourage the staff of Dunns Ski Emporium and The Deli to acknowledge his decision of the merger.... n the other hand, John was young and enthusiastic about the expansion of the ice-cream business which would benefit from the merger of the two firms....
5 Pages (1250 words) Research Paper

Effects of Accounting, Taxes and Regulations on Merger and Acquisitions

ompanies in quest of mergers and acquisitions are always looking to reduce the risk that they bear in the market environment by adding up further capital, means of expansion and steady growth which could secure their place in the market.... The research "Effects of Accounting, Taxes, and Regulations on merger and Acquisitions" provides an analysis of the merger and acquisitions of companies in terms of accounting, legal procedures and tax systems....
5 Pages (1250 words) Research Paper

Mergers and Amalgamations in NFP Organizations

merger refers to the fusion of two or more business entities and one or more entities lose their identity during this integration process.... Under the merger technique, a company's assets and liabilities are added to another company's assets and liabilities.... Even though both these terms are closely related each other in terms of their basic concepts and purpose, there are many technical differences between these business expansion techniques....
9 Pages (2250 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us