Introduction In November 1997, the acquisition of APL by NOL was successful. As compared to the larger US based APL; NOL was a small Singapore firm. Through this acquisition, it appeared that NOL was ready to become an industry leader in the shipping industry. Thus this acquisition is a strategy through which NOL buys a controlling, 100 per cent, interest in APL with the intent of making the acquired firm a subsidiary business within its portfolio. Thus APL became a wholly owned subsidiary of Singapore based NOL, a global transportation and logistics company engaged in shipping and related businesses. Below is the study of the problems and strategies that NOL faced or is facing during the acquisition and integration of APL. Issues/Challenges facing NOL/APL 1) Agency Relationships There were separate management structures maintained in the group with the CEO of NOL in Singapore and CEO in the United States reporting to the group CEO. This separation between owners and manager creates an agency relationship. This exist when one or more persons (the principal or principals) hire another person or persons) as decision making specialist to perform a service. In the modern corporation, managers must understand the links between these relationship and the firms effectiveness. The agency relationship between managers and their employees is important as this is related directly to how the firm’s strategies are implemented. This separation between ownership and managerial control in this instance can be problematic as the principal and the agents have different interests and goals. In a large publicly traded corporation such as NOL/APL, shareholders (principals) lack direct control when the CEOs (agents) make decisions t... ... middle of paper ... ...el – with its focus on yield, value-added services, high asset utilization and cost management In Terminals, we are focused on boosting productivity and capacity in areas targeted by our Container Shipping business. Our Logistics unit is driving for synergistic growth, developing and securing its links to Container Shipping Core competency Best in the world at moving and managing containerized trade, providing a lifeline for the global economy. APL Resources Tangible Technological State of the art information technology Intangible Reputational 150 years of shipping tradition Capabilities Provide worldwide coverage across all the major trade lanes. Industry-leading schedule reliability Human Resources Excellent customer service Core competency Seamless global connectivity
The Great Lakes Global Freight Gateway (GLGFG) Project is an initiative that seeks to transform the Southeastern Michigan and Southwestern Ontario region into a multimodal transshipment hub. This hub will be where goods are moved through the Port of Halifax, loaded on the new Maersk Triple-E container ships, and shipped to worldwide markets. The Port of Halifax is currently the only deep-water port that can accommodate these post-panamax container ships. These Triple-E ships can move up to 18,000 containers and, due to the economies of scale, reduce the shipping cost per container; thereby reducing cost to manufactures (GLFGr4, pg. 4). Detroit is currently the best-situated city for repositioning its main economic engine to transcontinental shipping. The location on an international border and the system of rail lines and roadways in the region, are the assets that make this opportunity possible. That is the broad view of the project, but many people want to know a more narrow scope of the project. They want to know the local impact of the project. This essay will address the local angle by illustrating how the decline of the automobile industry has placed this region in a position for revival as a transshipment hub. Also, this essay will illustrate how economic activity from The Great Lakes Global Freight Gateway Project can regenerate local real estate markets.
We focus on managing our business as efficiently as possible to continually improve the quality of our service and invest in growth
1. What are the primary business risks associated with UST Inc.? What are the attributes of UST Inc.? Evaluate from the viewpoint of credit analyst or bond holder.
... everybody and me that companies merge to cut down costs and increase market share. However, it is very interesting and surprising on the direction which the American Airline decided to take. The focus on targeting corporate clients through widening their operation networks is something each manager or management student should take note of. The airline industry is very competitive and thus high cutting edge ideals are inevitably needed to survive the competition. This is what the new American Airline is exhibiting and I truly like the move.
Our commitment to steady, long-term improvement in our products and processes is the cornerstone of our business strategy. To achieve this objective, we must work to continuously improve the overall quality of our design, manufacturing, administrative, and support organizations.
Worstall, T. (2013, March 01). Solving The Principal Agent Problem: Apple Insists That Executives Must Hold Company Stock. Retrieved from Forbes: http://www.forbes.com
The strategic recommendations provided will improve and enable the business to cope with the competitors, while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the business. In the case study, it was discovered that there were sources of opportunities in which the company would invest.
Carnival Cruise Lines was the most popular and most profitable cruise line in the world. In regards of threat of new entrants, it is very difficult to enter in the cruise industry. The competition ne...
Strong customer relationship: high-touching, responsive customer service. Flexible: mix model of owning and chartering vessels. Specially sized shipping: refrigeration and insulation containers. Weaknesses - No operating experience in TransPacific market.
Jensen, M.C and Meckling, W.H (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, October, 1976, V. 3, No. 4, pp. 305-360. Available on: http://www.sfu.ca/~wainwrig/Econ400/jensen-meckling.pdf. [Accessed on 20th April 2014].
Each party plays his parts – Role of key players like owners, Board of directors and staffs
Most businesses navigate through several cycles. One of the cycles is success, a stage where businesses exploit their accomplishments by expanding to build further scale. Arguably, Ocean Basket is in this stage, as it prepares its business model for more international markets.
The relationship between employer and employees plays a pivotal role in the performance of the organization. Employers and employees have certain responsibilities towards each other which facilitate a fair and productive workplace. Positive work relationships create a cooperative climate with effort towards the same goals. Conflict, on the other hand, is likely to divert attention away from organizational performance.
withstanding a large recession, and commanding high market share. In the last five years, the company’s
One of the most influential and major steps towards keeping a strong freight transportation system has been the implementation of MAP-21 by President Obama in 2012. Within this large bill there were several significant freight provisions outlined. These provisions were aimed at the, “economic competitiveness and efficiency; congestion; productivity; safety, security, and resilience of freight movement; infrastructure condition; use of advanced technology; performance, innovation, competition, and accountability in the operation and maintenance of the network; and environmental impacts.” [1] The purposes of these provisions set forth are to improve the overall condition and the efficiency of the nation’s freight network. The significant freight provisions are basically large investments that have been made int...