This field examines issues such as the use of heuristics, framing, and tackles market inefficiencies such as the occurrences of bubbles, such as the real estate bubble that represents part of RBS's demise in this case. One piece of academic literature examines the possibilities of bankers' herding behaviors as a catalyst for the financial crisis (Haiss, 2010)
It has been argued that most of the academic work that looks into these relationships focuses on corporate governance from an insider's point-of-view i.e. A shareholder's or director's perspective (Kordel, 2008)
RBS had built a culture of expansion through acquisition at the turn of the century; lead by Sir Fred Goodwin. Under his leadership, RBS managed to acquire through merger the control of NatWest; which at the time of acquisition was nearly double the size of RBS (Skinner, 2009)
Not only are the implications of market pressures heavily weighted in the minds of today's industry leaders as incentives for mergers and acquisitions, there are other, more subtle benefits that may also provide organizations' competitive advantages through this mode of expansion. One author argues that the infusion of new ideas, paradigms, perceptions, and business process can act to revitalize otherwise uninspired standard operating procedures (Vermeulen, 2010)
According to the international law, a complete acquisition of a company by a company from a different country results in complete transfer of ownership of that company and empowers the acquirer to have complete control on the newly formed company and apply its rules and regulations on it, and as such the control of corporate sector is replaced. By doing so the applicable corporate governance of the acquired company will be of the country where the acquiring company exists (Bris and Cabolis, 2008 as cited in Martynova and Renneboog, 2008)
In the year 2005 (as cited in Martynova and Renneboog, 2008) is offered here where the takeovers are termed as the valuables of the countries where rights of stakeholders are protected and as such compel firms to opt for a productive merger and acquisitions from their neighboring countries of low governing standards with respect to the protection of stakeholders rights. International mergers and takeover processes are positively influenced by efficient control by the parent country which may lead to the formation of a direct link between protection of investors and a companies' access to debt financing (La Porta et al
Even though the target company is not completely taken over by the bidding company in partially acquiring scenario, the bidding firm may try to enforce their own rules and regulations of governance on the target firm on the condition that the rules of the bidding firm are more binding than the target firm. On the contrary, if the rules and regulations of bidder firm are less effective than the rules of the target firm than the bidding company has to follow the law of the target firm (Martynova and Renneboog, 2008)
Even though the target company is not completely taken over by the bidding company in partially acquiring scenario, the bidding firm may try to enforce their own rules and regulations of governance on the target firm on the condition that the rules of the bidding firm are more binding than the target firm. On the contrary, if the rules and regulations of bidder firm are less effective than the rules of the target firm than the bidding company has to follow the law of the target firm (Martynova and Renneboog, 2008)
Mergers and Acquisitions (Organizational Characteristics) The practice of merging and acquiring new firms from different countries has greatly increased over the past fifteen years (Moeller and Schlingemann, 2005 as cited in Martynova and Renneboog, 2008)
Mergers and Acquisitions (Organizational Characteristics) The practice of merging and acquiring new firms from different countries has greatly increased over the past fifteen years (Moeller and Schlingemann, 2005 as cited in Martynova and Renneboog, 2008). By this way of expansion, that is through acquisitions and mergers, they are able to take advantage of the difference in tax rates and are able to make a profit from the inconsistencies of the markets, for instance, the government control on resource markets and labor force (Scholes and Wolfson,1990 as cited in Martynova and Renneboog, 2008; Servaes and Zenner' 1994 as cited in Martynova and Renneboog, 2008)
By following the bootstrap strategy of employing controls in the business, the bidder will facilitate in increase in the value of shares at the time of merger owing to better corporate governance. In the case of either a complete merger or acquisition of a company or in part bootstrapping can take place, but increase in value will be greater in partial acquisitions where the bidder possess less than hundred percent of the right to vote and the target firms stay a member of the stock exchange (Starks and Wei, 2005 as cited in Martynova and Renneboog, 2008)
"Healthcare mergers are increasingly being considered as a possible solution to creating sustainable and patient-centric service models." (Carter, 2011 P
The payment term will be fee-for-service compensation plan based on the fee schedule for service provided by physician. (Gaynor & Mark,1999)
9 million people in 2014, which will contribute to 9.4% of private health insurance spending. (Plunkett Research, 2012)
For instance, when units are merged, professional staff often are unclear about their roles, or the potential redundancy of their position. These issues include retaining employees, use of those employees, continuing or improving quality and operational management (why we do what we do and how we do it), knowing that quality must go beyond numbers and deep into the surface -- not what people will accept, but what will grow the business, strategic goals and ways to achieve them, customer service and overall philosophy, a public relations plan that works internally as well as externally, and a clear line of decision making and change management that allows a win-win situation for everyone involved (Angrisani & Goldman, 1997, 4-6)
Too, because the half-life of technology is so short, radical and category breaking innovation is needed not just to compete, but to provide the global environment with positive growth. Thus, it must be robust and unafraid to take chances (Farb, 2004)
Diversification -- moves the organization into a different line of business which may include unfamiliar products, markets, or even new levels in the system. The new market or product/service could be a companion business, but could also be something only ancillary related (Friedman, 2002)
Indeed, many believe that one of the templates that make up this fluidity is the concept, even more popular in the late 20th and early 21st centuries, of mergers and acquisitions. Definitions -- Mergers and Acquisitions (M&a) typically refers to a corporate fiscal and strategic set of strategies that deal with the purchasing, selling, and/or combining of different companies or pieces of companies that are able to help grow a company or experience rapid innovation with either creating another business entity or investing research and development from the ground up (Hennepopf, 2009)
Since truly the one constant in business is change, it is how we adapt to such changes; as individuals and part of groups, that helps manifest behaviors as he culture evolves. This is quite the case in modern healthcare organizations which have become so complex and competitive that the old paradigm -- improve efficiency and the bottom line improves, is no long the case, not what is required to protect stakeholder interests (Horibe, 2001)
Sometimes this strategy gives the sales force more to sell, excites the team, and allows for even greater penetration. Finally, M&a can remove barriers to entry -- relationships may already be solidified with governmental agencies or companies that will allow an established presence and then a merger of capabilities to move forward in a new, more powerful direction (Kauppi, 2006; Bruner, 2004)