The Economics of Domestic Violence Essay - 2215 Words

Economic distress does not directly cause domestic violence but there is no question that economic hardships along with other outside factors cause abuse in the home. The vital key to ensure the freedom from domestic violence is economic self-reliance. While most American#161;#166;s would view domestic violence as a psychological and family issue, domestic violence affects not only the psyche of the victim it also perpetuates the poverty of women. The welfare reform act of 1996 increased research on violence against women who are on public assistance and who live within the poverty level. Welfare reform has considered special hardships for the victims of domestic violence, yet the Family Violence Option of 1997 (FVO), an individual†¦show more content†¦As of August 2000 over 35 states have completely adopted the FVO option. The FVO option allows states to modify program requirements and extend time limits to help victims of domestic violence. Research has also shown that applicants and recipients of welfare endure domestic violence for an increased length of time and a greater number of times than those who do not reach out for economic help from the government. Over half of the women who apply for public assistance report being abused at some point during their relationship. Women who are economically dependent on their partner remain in violent homes because they fear suffering the repercussions of poverty. Trapped by poverty/Trapped by abuse The Taylor institute and the University of Michigan Research Development Center on Poverty along with Jody Raphael conducted a collection of research studies, which help us identify how domestic violence against women, effects their lives and chances of becoming economically independent. The review focuses on four main research studies done on the Welfare-to-Work program in Passaic County, Welfare reform in Massachusetts, the Worcester research project conducted in Massachusetts and the effects of violence on women#161;#166;s employment performed in Chicago Illinois. The studies use different methods of research: randomShow MoreRelatedDomestic Violence1670 Words   |  7 PagesNovember 2, 2010 Domestic Violence While unemployment rates are increasing, the rise of domestic violence and stress continue to emerge. Due to the economic downturn, domestic violence precedes increasing crime rates. So far evidence and scientific research concludes economic problems manifest domestic violence. Apparently despair and desperation coincides with the ailing economy, and the recession is partially to blame. The correlation between domestic violence and economic stress resultsRead MoreWhat Are The Costs Of Domestic Violence?996 Words   |  4 PagesWhat are the costs of domestic violence? A United Nations report called â€Å"The Economic Costs of Violence Against Women: An Evaluation of the Literature† explores the economic impact on societies. The cost of domestic violence includes direct costs such as medical services, law enforcement, legal expenses, incarceration costs, mental health services, therapy, education and lost property. Social services, government programs and welfare add additional financial burden to the problem. Businesses experienceRead MoreDomestic Violence Against Women Essay974 Words   |  4 PagesDomestic abuse against women In her news article, the spokesperson for amnesty international describes domestic violence as a worldwide phenomenon that violates the human rights of female victims (Mite, 2005). In addition, the United Nations Children’s Fund (UNICEF) described violence against women as â€Å"a global epidemic that kills, tortures, and maims – physically, psychologically, sexually and economically. It is one of the most pervasive of human rights violations, denying women and girlsRead MoreHow Domestic Violence Affects Children As Well As The Mental Health Of Its Victims1744 Words   |  7 Pagesextensive overview of the research topic. This chapter will provide a historical background on domestic violence, a historical perspective of the services provided and an overview of different forms of domestic violence. The goal of this literature review is to examine the statistical information that is presented as it relates to domestic violence. This literature review will also r eveal how domestic violence affects children as well as the mental health of its victims. In addition, this chapter willRead MoreThesis: Domestic Violence and Credible Source1677 Words   |  7 Pagesï » ¿Thesis Statement Studies have shown that an increasing trend of domestic violence is being perpetrated in heterosexual households. Many of these cases involve the male abusing the female, and the female actively attempting to maintain an outward appearance of normalcy despite the silent suffering. This outward image is nothing but a cover to maintain an illusion to the world that everything is good in the relationship, and also in many cases for fear of further abuse for drawing attention toRead MoreThe Violence Against Women Act914 Words   |  4 PagesEconomic and Political Context Long before its enactment on September 13, 1994, the foundation for the Violence Against Women Act was being constructed. More than 140 years ago, members of the U.S. government were working to end the injustice of violence against women when, in 1871, Alabama was the first state to make it illegal for a man to beat his wife (U.S. Department of Justice, 2010). In 1967, one of the first domestic violence shelters in the country opened its doors in Maine; and from thatRead MoreDomestic Violence And Sexual Abuse1478 Words   |  6 PagesLiterature Review Background of Study ​Anger and violence happen at every level in the family, which ultimately destroys the family life, and it happens with couples, parents, children and also siblings. However, females have primarily been the target of violence (Payne Wermeling, 2009). Domestic abuse is often recurring and it signifies that one partner in the relationship threatens the other psychologically, economically and sexually by harming them physically or threatening to harm themRead MoreIssue Relating to Violence Abuse Against Women and Children within Family918 Words   |  4 PagesIssue relating to violence abuse against women and children within family The issue that I am exploring As increasing number of women are gaining more rights globally as well as their economic power. However, domestic violence, especially violence against both women and children from associated partner remaining a broad issue that need to be addressed. Public health studies indicated that a large number of people have the experience of witnessing varies degree of violence within the family. I believeRead More Domestic Violence in Canada1662 Words   |  7 PagesViolence has become prevalent within society; it is something the western world has learned to accept. With every minute that passes Canadians come face to face with certain acts of violence they may not have previously encountered (citation). Although, violence is not a subject that one can escape, women and children have unfortunately become the prime victims of violent acts. The media glorifies violence in other countries around the world it fails to address the presence of violence within CanadaRead MoreThe Effects Of Domes tic Violence On Children780 Words   |  4 PagesDefinition/History/Statistics Historically, domestic violence has been a devastating social problem affecting individuals from every segment of the American society irrespective of race, class, age, religion, sexual orientation, nationality and economic status. Although, men to a smaller extent experience domestic violence, it is usually understood as a women s issue; which inadvertently affects children. Approximately, 85 to 95% of victims are females (Laney, 2010). Every 9 seconds in the United

Essay about What to the slave is the fourth of july

On Monday July 5th, 1852, Frederick Douglass captivated his audience at Corinthian Hall in Rochester, New York with one of the most powerful antislavery orations ever delivered, â€Å"What to the Slave Is the Fourth of July?†1 As an African American and former slave himself, Douglass was a crucial component to the Civil Rights movement and the abolishment of slavery. His concern for equal rights sprouted as early as twelve years old, often listening to debates among free blacks in Baltimore, as well as becoming a member of the East Baltimore Mental Improvement Society. While enslaved, he taught himself to read and write with the patriotic essays and speeches in Caleb Bingham’s The Columbian Orator, which emphasized the power of a speaker’s†¦show more content†¦By supporting the Revolutionaries actions to break free from British Rule, Douglass alluded to the similar fight that the American population faced to attain the same liberty that white citizens ha d. With the same courage the Founding Fathers had to create a free country, the American generation of 1852 faced a similar test to uphold the values of the Declaration of Independence, and liberate American slaves.7 After applauding the Founding Fathers, Douglass acknowledges that the emphasis of his speech is not to give praise, but to call on America to act on it’s own failures and begin to faithfully fulfill the nations oath.8 He asks his audience, â€Å"Are the great principles of political freedom and of natural justice, embodied in that Declaration of Independence, extended to us [African Americans]?†9 This rhetorical question Douglass presents, challenges America to reevaluate what they are truly celebrating on the Fourth of July, for it is surely not the freedom in which they claim to have achieved. Douglass asserts that asking black people to rejoice in the â€Å"shouts of liberty and equality, hollow mockery†10 and do not respect the courage, and step s the Founding Fathers took to create a free, liberated nation.11 Early on in Douglass’ career as an abolitionist, he affiliated his beliefs to fellow abolitionist, William Lloyd Garrison, claiming that theShow MoreRelatedEssay What to the Slave Is the Fourth of July704 Words   |  3 Pagesâ€Å"What to the Slave is the Fourth of July† is a very moving piece about what the Fourth of July means to slaves. The speech was given by Fredrick Douglas in Rochester, New York, on July 5, 1852. His use of ethos, pathos and logos made this an extremely effective speech. The speech â€Å"What to the Slave is the Fourth of July† opens with Frederick Douglas explaining how he was asked to give a speech on the Fourth of July. He then gives a brief statement about how hard his journey has been and now heRead MoreWhat To The Slave Is The Fourth Of July, By Frederick Douglass821 Words   |  4 Pagessomething. â€Å"What to the Slave is the Fourth of July†, â€Å"Ain’t I a Woman†, and â€Å"Brown v. Board† are all examples that clearly show why people struggle for change. â€Å"What to the Slave† focusses on what the Fourth of July means to slaves. â€Å"Ain’t I a Woman† discusses the differences between how black women are treated compared to white women. â€Å"Brown v. Board† is about how segregation has a lot of negative factors and how they need to change it. Today most people think of the Fourth of July as a holidayRead MoreWhat to the Slave Is the Fourth of July a Rhetorical Analysis1100 Words   |  5 PagesIn his speech, What to the Slave is the Fourth of July?, Frederick Douglass passionately argues that to the slave, and even to the freed African American, the Fourth of July is no more than a mockery of the grossest kind. Douglas uses many rhetorical strategies to convey his powerful emotions on the subject, and the end result is a very effectively argued point. Douglass begins by asking a series of rhetorical questions, not without the use of sarcasm. He refers to that Declaration of IndependenceRead MoreFrederick Douglass Speech In What To The Slave Is The Fourth Of July755 Words   |  4 PagesIn his speech ‘What to the Slave is the Fourth of July’, Frederick Douglass passionately argued that to the slave and all other Americans, the Fourth of July is nothing more than a mockery of the grossest kind. Tha t the United States stands by hypocrisy to the values they ultimately swear. In his speech, Douglass made four clear points: (1) â€Å"This holiday is to rejoice for the sake of freedom and liberty†; (2) â€Å"My people have no freedom, have no liberty†; (3) â€Å"You rejoice, my people mourn† (4);Read MoreThe Main Sections Of Douglass s Speech And How They Work Together865 Words   |  4 Pagessociety. Douglass’s speech, â€Å"What to the Slave is the Fourth of July help Americans think about the slavery in a new way. There are three sections in this: Section 1: Douglass praised the Founding Fathers, and gives honor to what they did for this country. This section is the beginning of his speech and it will be the base of the second section which accuses Americans about the position of African Americans. In addition, Douglass condemned slavery and the Fugitive Slave Law. It is intelligent to startRead MoreEssay about Fredrick Douglass - Fourth of July Oration1321 Words   |  6 PagesOn July 5th 1852, Frederick Douglass, one of history’s outstanding public speakers, carried out a very compelling speech at Corinthian Hall in Rochester, New York. Within that moment of time where the freedom of Americans was being praised and celebrated, he gathered the nation to clear up the tension among slavery and the establishment of the country’s goals. Frederick Douglass’s speech mentions the development of the young nation, the Revolution, and his own life experience. While speaking,Read MoreGlobal Echoes Of Atlantic En lightenment And Revolution921 Words   |  4 Pagesother societies during or after their revolutions. What To a Slave Is The Fourth of July? is another source that demonstrates the international influences of the Atlantic revolutionary movements. It was written by Frederick Douglass. Douglass was born as a slave and escaped from oppression once he got older. He became a leading abolitionist, newspaper publisher, writer, and African American spokesperson. He spoke in New York on the fourth of July in 1852 about antislavery. Douglass speaks about theRead MoreFrederick Douglass : A Prominent African American Social Reformer1127 Words   |  5 Pagesvoice on social justice through a long profound, powerful, and influential career. Frederick Douglass’s famous Fourth of July speech has caused much criticism over the years. Douglass believed that on a day when white Americans were celebrating the slaves and former slaves were reminded of how their liberty and equality were disgraced in America. Frederick Douglass was born a slave but escaped to New York in 1838 where he learned to read and write. This lead to his career as an activist forRead MoreFrederick Douglass Speech1136 Words   |  5 Pagesworld and ignore any conflicting perspectives solely because they are different. In â€Å"What to the Slave is the Fourth of July?†, Frederick Douglass possesses an alternative view of a celebratory holiday representing freedom for American citizens. His background as a slave influences his unique outlook on the issue of true independence. He feels that the holiday represents the torture of slavery and the cruelty of slave owners, rather than the liberation of all American citizens. Within the speech, DouglassRead More A Speech Given By Frederick Do Essay975 Words   |  4 PagesAPPEAL After his escape from slavery, Frederick Douglass chose to promote the abolition of slavery by speaking about the actions and effects that result from that institution. In an excerpt from a July 5, 1852 speech at Rochester, New York, Douglass asks the question: What to the slave is the Fourth of July? This question is a bold one, and it demands attention. The effectiveness of his oration is derived from the personal appeals in which he engages the listener. At once in this speech, Douglass appeals

Mergers and Acquisitions in the Energy Sector

Question: Analyse the internal and external influences on corporate objectives and strategy. Answer: Introduction Mergers and acquisitions are the combination of two or more companies into a new company with the difference being the way in which the combination takes place (Roberts, Wallace Moles, 2010). For a merger, negotiations take place prior to the combination as it is considered that it will be beneficial to both companies. Acquisition entails one company buying the assets of another company to achieve managerial influence and is not necessarily by mutual agreement (Jagersma, 2005). An acquisition can be friendly or hostile. In a friendly acquisition, the company being acquired is willing to be acquired. Although every merger has a specific reason behind it, the principle underlying the business decision is to create additional value normally referred to as synergy . The synergy value can be in terms of increased revenues, lowering expenses or lowering the cost of capital. The biggest source of synergy value is lower expenses derived from the elimination of redundant services (Evans, 200 0). Usually, the contentious factor during take-overs is the valuation of the companies. The seller will always value the company at the highest price possible while the buyer tends to set the lowest price possible (Evans, 2000). However, there are legitimate methods of valuing companies which include comparative ratios, replacement cost and discounted cash flows. Mergers and acquisitions in the energy sector The fall in the oil prices in 2014 severely caused holistic negative impacts on the sector and other sector dependent organizations. These included equipment manufacturers, oil-related service corporations, NOCs (National Oil Companies) and governments. Rapid mechanisms to reduce costs and capital expenditure to maintain cash flow were, therefore, necessary. However cutting on expenditure was inadequate since predictions indicated oversupply would be prolonged. This called for major structural changes within the sector. The industry players in a bid to strike a balance between short-term viability and long-term objectives sought to implement various strategies to keep them afloat and sustainable. Among the transformational strategies is the merging and acquisition of companies in the industry. A study by Kearney (2016), leading global management consulting firm, revealed that most companies could not sustain the situation of oil prices and that smaller companies with lean balance sheets aimed at propping themselves while larger and more financially stable companies sought to off-load non-competitive and non-core assets. The study suggests that merger and acquisition opportunities were, therefore, several. Though the energy sector predicted a ballooning of MA activities in 2015, the industry, responding to the volatile prices in oil did not experience the wave. Universally, only 40 deals occurred in the first quarter of the year. Upon oil price stabilization in April, there was experienced increased activity before stalling later in the year. The second quarter saw the Shell-BP merger and the acquisition of Williams Companies by Energy Transfer Equity happen (Kearney 2016). Despite most companies being valued lowly and the low oil prices offering a good platform for mergers and acquisitions; deal making has remained fairly unresponsive. The slow response is highly attributed to unstable oil prices which make potential buyers doubtful of executing those deals. Most prefer hoarding cash and making the best out of the prevailing operations. A number of MA deals have, however, in response to both internal and external factors or as a strategic measure, happened since the oil price slump in 2014. They include the Shell-BP and Schlumberger Limited and Cameron International Corporation mergers; and the acquisition of Williams Companies by Energy Transfer Equity (Kearney 2016). Internal and external factors Mergers and acquisitions are influenced by various factors in the internal and external environment. Globalization is an external factor which is a major influence in companies strategic direction (Roberts, Wallace Moles, 2010). Mergers can be used to increase the market share in a globally competitive environment. This works best when the two companies considering merging were previously operating and commanding market shares in different geographic regions. The merger will harmonize operations over the combined region thereby having an increased foothold in the world for the entity. This positioning is meant to take advantage of future opportunities. The positioning due to globalization can also be due to combine competitive advantages of the companies. Case in point is the merger between Schlumberger Limited and Cameron International Corporation announced in April 2016. Schlumberger is the worlds largest oilfield services company with superior well and reservoir technology while Cameron has specialized in surface equipment, flow control and processing technology (Kearney 2016). The combination of the two can be the key to technology-driven growth of the company. Companies exist to maximize the wealth of their shareholders. Therefore, if a chance to increase the shareholder value comes in the form of a merger then it will most probably be considered. In the case of Schlumberger and Cameron, the merger increased the value of Camerons shareholders by 56% (WSJ). Reduction of expenses eventually increases the profitability of companies. In this merger, streamlining of operations can reduce expenses a great deal thereby reducing the impact of stubbornly low oil prices. Mergers and acquisitions are also affected by the regulatory environment in which the companies operate in. There are regulations which must be fulfilled for a merger or acquisition to be approved. These regulations are meant to protect the interest of stakeholders who may include shareholders, customers or the government. A merger deal between Energy Transfer Equity and Williams Companies has been terminated this year after lawyers could not advise on the tax treatment of the deal. The regulatory environment may be conducive or prohibitive to mergers and acquisitions. Prohibitive regulations are put in place in instances where the merger can result in an unhealthy competition in the market. This occurs mostly when the two biggest market players have the intention to merge. Such a merger can result in a monopolylike company (Roberts, Wallace Moles, 2010). This can pose artificial barriers to entry into the market by new firms. MA as a Growth Strategy Difficult and challenging economic environments such as the fall in the oil prices may call for companies to re-evaluate their business models in a bid to transform their organizations. One of the strategies that they adopt is by either merging with or acquiring other companies (Jensen Ruback, 1986). Since the inorganic growth of companies has become insufficient in countering the prevailing low growth rates, firms often turn to developing vibrant MA strategies to complement them consequently achieving the companys set goals. Prior due diligence on the apt target companies is done. Such companies with strategic and desired regions and complimentary services or goods are put on the radar of availability. The companies are therefore quick to act whenever such companies become available for a merger or acquisition (McLaughlin Mehran, 1995). Diversification in a companys portfolio can be addressed both as a factor influencing mergers or a strategy for the merger (Roberts, Wallace Moles, 2010). There are cases for and against diversification but with the oil industry facing one of the worst downturns which have the possibility of lasting longer than expected, it makes perfect sense. In the world of mergers and acquisitions, diversification will be in acquiring or merging with complementary companies as opposed to competitors. To Schlumberger Limited, Cameron International is a complementary company. Cameron International is in the operation of several businesses which are outside the core oilfield services dominated by Schlumberger, Halliburton and Baker Hughes. Cameron has specialized in the provision of world class flow technologies. Therefore, by the acquisition of Cameron, Schlumberger is expanding its territories into areas with lesser competition. The services offered by Cameron are also not easily replicable there by offering sustainable growth in the foreseeable future. Benefits of merger and acquisition strategy Capitalizing on the financial statistics of the merging companies and the fact that both firms are on the same sector and trading on similar products, synergy effects can easily be achieved (Gaughan, 2002 and Mahoney McCormick, 1988). Firstly, the companies grow bigger in scale. Slow organic growth of individual companies could be achieved through merging and acquisition other firms. The combined resources, personnel, and finances mean that the companies are in a better position to use the existing and establish new and larger markets and networks (Sherman, 2010). Increase in research and development may often result in achieving speedy growth and thriving market presence (Gaughan, 2002). Schlumbergers operating cash flows were way much bigger than Camerons. Revenue and operating cash flow, therefore, increased after merging. Secondly, combined companies establish operating synergies as the merged companies enjoy economies of scale better than at individual levels (Bruner, 2004). Acquisition of raw materials is simplified as it is done in larger quantities than at an individual scale thus guaranteeing them larger cost rebates (Tidd Bessant, 2008). Furthermore, transport costs are decreased since the raw materials and finished products are transported in large volumes thus reducing the transport cost per unit (Verde, 2008 and Jensen 1986). Overall production charge per unit will be greatly reduced (Gaughan, 2002). It is easier for merged companies to initiate new product lines and enter into new markets in an already existing distribution system. Higher return on investments, amplified volumes of products as well as projected sustainable futures as positted by Damodaran (2005) can arise from combined operations of the merging companies. The combination of Schlumberger which is the worlds largest oilfield services company with superior well and reservoir technology and Cameron whose specialty is in surface equipment, flow control and processing technology, could lead to a technology-driven growth of the company. Cameron and Schlumberger look ahead to achieve synergies in cost through reduction in costs of operations, management of the supply chain and improvements in manufacturing systems. This, however, is expected to be the result for the initial year while the revenue synergies are expected in the second year. Thirdly, the companies stand to benefit from the financial synergies that may stem from merger and acquisition deals. This is because the combination of the two imperfect correlated cash flows of the merging companies may reduce individual default risks arising from the coinsurance effect created (Huyghebaert Luypaert, 2013). In addition to reducing the cost of debt, combined firms benefit from larger debt tax rebates on interests due to the growth of their borrowing capacity. Consequently, the cost of capital decreases. In the merger between Schlumberger and Cameron, the value of Camerons shareholders increased by 56%. Profitability increased as a result of reduced expenses and streamlined operations. Other benefits that may arise from MA activities include reducing competition, achieving domination in the market and achieving pure diversification. It has also been established that companies stand to benefit from tax regimes in merger deals especially when larger companies acquire firms with net operating losses to reduce taxable income (Berger Ofek, 1995). Challenges of merger and acquisition strategy Mergers and acquisitions even though well thought out can be faced with several challenges during acquisition or can go bad after finalizing (Gaughan, 2002 an Winburne et al). Royal Dutch Shell acquisition of BP Group is one such story. Hardly a year after the acquisition, negative cash flows in a very tight market has seen Royal Dutch contemplate shedding off assets of more than half the value of the acquisition. Through the acquisition deal, Shell was acquiring assets in Brazil in terms of oil fields. The prevailing political climate posed multiple risks. The inability of lawyers to advise on the tax treatment of the deal between Energy Transfer Equity and Williams Companies has resulted in the termination of the deal. Harmonization of the post-merger entities can prove to be slow and tedious as individuals in the separate organizations attempt to integrate within the new firm to dispense of their responsibilities (Cartwright Schoenberg, 2006 and Colman et al, 2011). The already established culture and organizational structures prove difficult to break and can result in the failure of MAs. Major challenges of MAs therefore, revolve around human resource. Loss of key expertise in the form of resignations of employees from the organization due to job insecurity is one of the key concerns of the newly formed companies. Often, employees are not aware of MA activities until they happen (Gaughan, 2002). This communication breakdown leads to distrust and fears among the employees with regard to their future and roles in the new dispensation. The uncertainties may lead to voluntary migration of employees from the company leading to a shortage especially in expert staff (Waight, 2004). The loss of key top-level employees also leads to a diminished dedication and lower efficiency in the remaining staff. The new work atmosphere and culture disorient them and tend to lose their commitment towards the company. It, therefore, rests with the companys management to devise new mechanisms to boost their sense of belonging and trust in the company. This is often done through clear definition of roles and responsibilities, identification of rewards and awards of appraisals. Companies thrive in existing and almost innate cultures that show common values, goals and beliefs expressed in leadership, management and strategy formulation in their day to day activities (Mayer Altenborg, 2008). It is almost difficult to combine existing cultures of merging companies in the new organization (Peng, 2006). Change is inevitable. Shifts in these cultures can have negative impacts on the newly organization since people resist change (Camara Renjen, 2004). As mergers and acquisitions happen, communication to the staff is key. There should be clear cut enumerations of responsibilities, expectations, development plans and managerial changes that are expected in the new dispensation. This should be able to improve integration and quicker adaptation to the new set up (Chapman, 2004). Conclusion The much anticipated merging and acquisition of companies activity in the wake of oil prices drop in 2014 did not happen on the scale it was expected. This was majorly because prospective buyers were hesitant to buy out or combine with other firms with fear of a prolonged price crisis. They opted to wait, maximize their revenues and capitalize on reducing operating costs. Mergers and acquisition deals can either work for or against the combining firms. Among the benefits that such activity may have on the companies include growth and development, reduction in operating costs, maximization of revenues, diversification and maximized competitive advantage. Mutual benefits to be accrued from combining the companies often guide the MA process with companies carrying out due diligence. The major challenge and setback of combing companies is loss of employees, distrust among the employees left after migration and breaking of operational, managerial and financial cultures in the combining cultures. These can, however, be mitigated with prior research and analysis of the existing cultures and timely integration measures. Communication comes in as a key component in raising awareness to the employees about the reason and aftermath of the merging process. Confidence is therefore boosted. References Berger, P. Ofek, E. (1995). Diversifications Effect on Firm Value, Journal of Financial Economics, Vol. 37. Bruner, R. (2004) Where MA Pays and Where It Strays: A Survey of the Research, University of Virginias Darden School, Journal of Applied Corporate Finance Camara, D. Renjen, P. (2004). The Secrets of Successful Mergers: Dispatches from the Front Lines. The Journal of Business Strategy, Vol. 25, Issue 3. Cartwright, S. Schoenberg, R. (2006). Thirty Years of Mergers and Acquisitions Research: Recent Advances and Future Opportunities. British Journal of Management, Vol. 17, Issue1. Chapman, N. (2004). Key Success Factors in Mergers and Acquisitions, Strategic HR Review. Vol. 4, Issue 1, 27. Colman, H., Stensaker, I. Tharaldsen, J. (2011) A Merger of Equals? The Integration of Statoil and Hydros Oil Gas Activities. Fagbokforlaget. Bergen. Damodaran, A. (2011). Equity Risk Premiums: Determinants, Estimation and Implications The 2011 Edition. Stern School of Business Gaughan, A.(2011). Mergers, Acquisitions and Corporate Restructuring. Fifth Edition. John Wiley Sons. Huyghebaert, N. Luypaert, M. (2013). Sources of Synergy Realization in Mergers and Acquisitions: Empirical Evidence from Non-Serial Acquirers in Europe. International Journal of Financial Research. Jensen, C. (1986). Agency Costs of Free Cash Flow, Corporate Finance and Takeovers. American Economic Review, Vol. 76, No. 2. Jensen, C. and Ruback R. (1983). The Market for Corporate Control: The Scientific Evidence. Journal of Financial Economics, Vol. 11. Kearney, A. (2016). Mergers and Acquisitions in Oil and Gas. Luypaert, M. and Huyghebaert, N. (n.d.). Determinants of Growth Through Mergers and Acquisitions: Empirical Results from Belgium. SSRN Electronic Journal. Mayer, C. Altenborg, E. (2008). Incompatible Strategies in International Mergers: The Failed Merger between Telia and Telenor. Journal of International Business, Vol. 39, No. 3. McLaughlin, R. Mehran H. (1995). Regulation and the Market for Corporate Control: Hostile Tender Offers for Electric and Gas Utilities. Journal of Regulatory Economics, Vol. 8:181. Peng, M. (2006). Global Strategy. South-Western, United States Roberts, A., Wallace, W. and Moles, P. (2003). Mergers and acquisitions. Harlow: Pearson Education. Sherman, A. (2010). Mergers and Acquisitions from A to Z. Third Edition. New York. American Management Association. Tidd, J. Bessant, J. (2008). Managing Innovation. Integrating Technological, Market and Organizational Change. Fourth Edition. West Sussex. John Wiley Sons. Verde, S. (2008). Everybody Merges with SomebodyThe Wave of MA in the Energy Industry and the EU Merger Policy. Energy Policy 36 11251133 Waight, C. (2004). HR Involvement in the Investigative Phase of a Merger Acquisition. International Journal of Training and Development, Vol. 8, Issue 2. Winburne, Blake H. Archer, R. The Top Five Traps in Energy MA Transactions, Inside MA July/ August; McDermot Will Emery Newsletters.

Purchasing Professional Services The Case of Advertising Agencies

Table of Contents Introduction Professional services Advertisement agencies Criteria for choosing Agencies Purchasing a service Agency selection Conclusion Introduction Organizations require services that they do not offer and therefore, they have to purchase those services from third parties. These services fall under two major categories, which include generics and professional services. Unlike generics, which are low cost and low risk services, professional services are high-risk services and for this reason, they have the potential for purchasing to add value.Advertising We will write a custom case study sample on Purchasing Professional Services: The Case of Advertising Agencies specifically for you for only $16.05 $11/page Learn More Advertisement is one of the most significant services that every organization has to buy. According to researches, the firm’s top management in conjunction with marketing / advertising with little involvemen t from purchasing makes key decisions regarding the hiring, monitoring and firing of agencies. This paper focuses advertising agencies with the aim of highlighting the fundamental aspects of purchasing professional services as opposed to purchasing of goods. Professional services Purchasing professional services differ from purchasing goods in a number of ways. One of the most common assumptions of these services is that they are intangible. This is because they are actions and no one can see, feel, taste, inspect, or touch them in the same manner as goods. The other characteristic is that they are inseparable from production and consumption and therefore the buyer has a direct contact with the production process. Thirdly, these services are heterogeneous meaning that quality may vary on a day-to-day, customer-by-customer basis and lastly is the fact that the services are perishable since these services cannot be stored or saved. Another important consideration when purchasing profe ssional services is evaluation. A modified industrial product paradigm may classify services into three categories, which include; easy to valuate, intermediate to evaluate and difficult to evaluate.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In the desire to compensate for the high risk involved in these purchases, corporate buyers often seek the endorsements of peers and positive word-of-mouth (WOM). The reliability of WOM depends on the theory of perceived risks. Advertisement agencies These corporations generate communication ideas and plans, and implement them. They include advertisement and communication agencies and associated companies like creative, media, public relations agencies, and direct marketing. The following model explains the potential role of purchasing in the agency-client relationship. The model consists of the five roles of â€Å"user,† â€Å"buyer, † â€Å"influencer,† â€Å"decider,† and â€Å"gatekeeper†. Users are people who use the services of an agency on a regular basis. The influencer on the other hand is the person who influences the selection process while the buyer is the individual authorized to negotiate with the agency. Deciders are the individuals who determine and finally approve the final selection of the agency while the gatekeepers are individuals who regulate the flow of information regarding the selection of agency. Criteria for choosing Agencies The criteria for choosing advertising agencies vary from one organization to another. However, there are three major criteria used in making this choice namely; the quality of people assigned to the account; complete agreement between the agency and client on goals and objectives and the need for agency personnel to learn the characteristics of the client business. The first consideration in making this choice is the type of agency-client relationship the management team aspires to have, whether long term or short-term. Short-term relationships are majorly project-based and rarely last much longer than the specific problem at hand. The other characteristic feature of these relationships is that the clients generally have relatively small advertising budgets. Once the agency has offered and implemented a solution, the relationship no longer continues. The long-term relationship (collaborative relationship), unlike the short term ones continue averagely for even over a period of seven years.Advertising We will write a custom case study sample on Purchasing Professional Services: The Case of Advertising Agencies specifically for you for only $16.05 $11/page Learn More Purchasing a service Purchasing services is different from purchasing goods in a numbers of ways. First, services are more difficult to evaluate than goods. Often, services have objective standards that service suppliers cann ot offer. The second difficult arises from the fact that suppliers of professional services are often reluctant to provide benchmarks for testing. Another problem is that matching payments to the service provided is imprecise since mediocre or poor services are difficult to evaluate unlike the excellent services, which are easy to monitor. Furthermore, unlike goods, which are returnable if the fail to perform, services, are not returnable. Finally, poor services, unlike goods, which are easily noticeable, may be undetected for a long period. These differences bring up new considerations when purchasing professional services. One consideration that is uncommon for the purchase of goods but fundamental when purchasing professional services is the reputation of the supplier. This therefore bring highlights the role of peers in recommending agencies that provide these services. Some of the key purchasing criteria are references, experience, examples of work, current clients, equipment u sed, and price. By comparison, the key purchasing criteria for goods were price, investment recovery, quality, and reputation. Many professional services have a measurable performance outcome. This is unlike advertising, which has no such measureable performance outcomes and thus it is more difficult to evaluate. Even though it is possible for purchasing to evaluate budgeted cost versus actual cost and to analyze cost-benefit ratios associated with these services, it is hard to evaluate their effectiveness. Agency selection The process of selecting advertisement agencies is the responsibility of the purchasing/ marketing and the top management. While Technical efficiency should be the main issue for purchasing managers, effectiveness should be the main issue for top management and marketing/advertising. This is a three-stage process. The first stage is the search stage. In this stage, the managers evaluate the market and the current agency relationships comparing them with others. A nother task in this stage is to determine a best procurement policy and the establishing selection criteria.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The second stage is the alternative evaluation stage in which the managers write and issue the advertisement brief, and assess the advertisement proposal and presentation. Purchasing main contribution should be the establishment of guidelines for commercial arrangements. Other tasks like risk assessment for each agency dominate this stage. The final stage is the selection of the agency. At this stage, it is the role of the purchasing to negotiate a contract and the terms of payment. Some of the factors that affect the purchasing involvement with agency suppliers include trust, commercial efficiency, knowledge and experience of advertising and project or collaborative relationship. Conclusion The intangibility of professional services brings a considerable difference between the purchase of these services and the purchase of goods. More specifically on purchasing advertisement services, the purchasing should play a more commercial role while the top management and the marketing shoul d play the role of ensuring effectiveness. The decision of which agency should be as a result of consultation between the marketing and the purchasing since such consultations yield more concise goals, added value, improved commercial and cost efficiency, and the ability to negotiate thorny contractual matters. However, the purchasing plays a facilitating role when it comes to agency relationships. This case study on Purchasing Professional Services: The Case of Advertising Agencies was written and submitted by user M0j0 to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.