Case Study: Conseco
Introduction
Imagine a multi-billion dollar company with a vision to be a full-service investments firm. The firm acquires a company in hopes of increasing the bottom line; however, the acquisition only places tremendous resource burdens on the company.
This scenario became a reality for Conseco, a leading source of insurance, investment and lending products. In 1998, Conseco purchased Green Tree Financial Corporation (Green Tree), a company providing various financial services. Conseco had intended for Green Tree would to propel it into a market leadership position; however, the exact opposite occurred.
This essay will provide an overview of Conseco, a situational analysis, a problem analysis including analysis of each business function, recommendations for the company, and a plan for implementing the proposed recommendations. The essay will focus on the acquisition of Green Tree and the subsequent implementation of a web-based cash management system.
Case Overview
Conseco services the extensive financial marketplace concentrating on the areas of insurance/risk management, investments and consumer finance/lending. These vast product offerings provided Conseco with a healthy revenue stream and a leadership position in the marketplace.
In 2001, the company had nearly $95 billion in managed assets, employed nearly 14,500 people and serviced 13 million customers. The company was financially sound throughout the 1980’s and 1990’s as annual returns continually increased. The company was hailed as a “great entrepreneurial success story.”
The soundness of Conseco would soon come to an end as the company continued to grow and amass assets, including Green Tree in 1998. Green Tree wa...
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...e essay focused on the acquisition of Green Tree and the subsequent implementation of a web-based cash management system.
Conseco’s goal to become a full-service financial institution took a step forward with the acquisition of Green Tree; however, the company failed to realize profits or a competitive advantage from the purchase. In the years following the acquisition, the company faced decreasing profits and decreasing stock prices. The acquisition that looked like a stepping-stone into market leadership suddenly appeared as a stepping-stone into bankruptcy.
Conseco must take a serious look at its future. If the company is going to survive in today’s cutthroat, ultra-competitive business world, it will need to take a serious look at its current financial status. The company will need to determine what’s more important – market leadership or survival.
Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must also take into consideration that the additional business units will not hinder the profitability of the existing business units.
Many people are afraid to make decisions concerning their wishes when they die. This includes fear of making wills and making critical decisions that affect lives of others when they are not there. When the patients are terminally ill, they become incapable of making these decisions and they are often assisted or directed by some external forces to make these decisions. This paper exploits options and conditions of different terminally ill patients with a keen look at their mental and health status. It is also going to explore on those patients with DNR (Do not Resuscitate) orders and advance directives.
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
Poverty is a prevalent issue that many Americans face and it has been a serious problem over centuries. Every year there are people at risk of hunger. Combating poverty is not an easy task; there are many underlying issues that need to be addressed. Fortunately there are policies in place to assist with in decreasing the negative effects of poverty; however, some of the policies may cause people to become more dependent on government assistance. As a result it may cause a rise in taxes to support these policies and programs. Poverty is very common and widespread around the world. Unanswered questions that arise in regards to poverty are what can be done to resolve it, what are the causes of poverty, and is it possible to eliminate poverty entirely. Based on research and my personal experiences, government aid and housing are some resolutions to decrease poverty.
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DESCRIBE THE STRATEGIC CONTEXT IN WHICH QUINTANA SHOULD JUDGE MUSIMUNDO’S PERFORMANCE. WHAT ARE THE CHARACTERISTICS OF THE ENVIRONMENT THAT MUSIMUNDO COMPETES IN? WHAT ARE PEGASUS’ STRATEGIC OBJECTIVES FOR MUSIMUNDO? HOW DO THESE FACTORS AFFECT THE BUDGETING PROCESS?
...ant improvement. The decline in property, plant, and equipment may be hurting Rondo and contributing to overall inefficiencies. Sales are growing but profits are not. Rondo's costs are too high and need to be reduced. In addition, inventory turns are degrading and inventory reduction strategies need to be investigated. A major problem for Rondo is the number of days it takes to collect accounts receivable. Significant focus is required in this area to free up cash, which can then be used to invest in property, plant, and equipment. These problems areas contribute significantly to an inefficient operation. This inefficiency inhibits profitability at Rondo and has led to a loss of investor confidence. Rondo's sales and net income have grown year over year and if the company can improve its efficiency in the areas noted above, investor confidence can be recaptured.
The use of tobacco dates back to the 17th century. The primary reason for its beginning was purely economic at first. It later became apparent to researchers over the decades that tobacco was more than just a commodity to be traded for economic gain. It was actually a drug, nicotine, which developed into physical dependency and had adverse side effects as people began to live longer. Further research at the social level, revealed its social impact on the western culture.
Throughout the 70’s, Walmart went public and became a traded company. In no time, the company was listed on the New York Exchange and slowly began its rise to the top. With the money from sales and the proceeds gain from sold stock, the company expanded from 51 stores operating in five different states to more than 125 stores located around the nation. Sales jumped from 78 million to over 340 million and continued to grow. The makings of a retail giant were in the works, but only time could tell how successful it might
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The Internet is rapidly becoming widespread and widely used as a tool for globalization across the world. As the Internet became more easily accessible by most people in the world, the web is bringing significant implications and changes to the way we live, including the way we shop. There is a rapid growth with e-commerce and moving businesses onto the web and retail success is no longer about stores and shopping centers. In developed countries, about two thirds of the population have access to the Internet making the option of online shopping is easily accessible to most people (Valerio). With the ease of shopping in your own home there are many benefits of doing your shopping online. Consumers can easily compare prices online, there is a larger range of products on the web, you can save time by having your shopping delivered right to your doorstep and it also overcomes physical barriers. Over the last decade online shopping has challenged and replaced the traditional means of physically going into shops as the digital world has provided customers with further convenience, flexibility and comfort from shopping from your own home.
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