Global Supply Chain Managment Essay Example | Topics and Well Written Essays - 1000 words

Global Supply Chain Managment - Essay Example However, Vivek argued that the degree of diversification is the measure for the size of benefits likely to be achieved by the shareholders. Susan believes that small benefit is achieved by the shareholder involved in the diversified project; therefore such investors are poorly inclined towards IPO of such diversified firms. Ronald is firm that the reduction in the likelihood of an IPO is linked with the increase in the degree of diversification, therefore IPO is mainly preferred by such investors who are strange to diversified companies, and as such investors have the potential to make profit from diversification of their portfolios. Atul is his article has claimed that the firm is likely to go public if the stakeholders are diversified, and possess equal shares. The deposit-insurance hypothesis is based on the assumption that the 'acquirers would be willing to pay more for riskier, more profitable organizations whose returns are highly correlated with the acquirer's returns'. As per Vivek, the managerial-interest hypothesis is constant and consistent, and has no relationship with purchase price and exposed risk; therefore the risk management is avoidable from supply chain perspective. Both the articles have agreed that upon the fact that the supply chain management shall be protective of share holder's stake, and the wealth of the shareholder can be increased through alliances that diversify earnings. The earnings diversification hypothesis is based on the fact that higher levels of cash flow for the same level of total risk can be achieved through acquiring banks i.e. seek earnings diversification, 'the reductions in business risk are offset by increases in financial risk'. Catherine is of the opinion that acquisition of firms can offset the reduction in equity value, which can be achieved through issuance of additional debt; such measures diminish the probability level of bankruptcy to the previous level, there have been strong evidence that leverage i s increased as a result of alliances and acquisitions between the non-financial firms. It has been observed that banks acquired by bank holding companies have reduced their capital ratios after acquisitions, and reduction has been incorporated at significant level, 'the increased leverage increases the tax shield due to debt and, hence, after-tax net cash flow'. Ronald informed that the acquired banks reduce their holdings of low-risk securities to a greater level, and also improve their holdings of loans, this correspondingly increase the earnings. Analysis of the common grounds and variances between the two articles Atul has referred to the Research and Development success story for the technological companies, 'R&D Credit supports technological innovations through which the creation and the perseverance of the qualitative standards of living has been possible. It has been realized that 'many positive economic benefits are driven and motivated by performance of research and development, including increased revenue streams to U.S. companies', which is further responsible for the enhancement of the company's ability to 'recruit employees, purchase capital goods, pay dividends to shareholders and contribute to a strong country tax base'. Vivek has supported the argument and has further validated that the loans which appear in the balance

Any company of the ones in the Quesation paper Case Study

Any company of the ones in the Quesation paper - Case Study Example Key elements of IBM's web strength are listed below: 1) IBM has highly reliable web infrastructure used to host its website and is available 24X7. 2) It has adopted its own web services platform known as Websphere for hosting its web services. 3) Back-end is hosted on its robust server infrastructure consisting of IBM mainframes. 4) The website is intuitive and easy to use, without complicated English or too much of technical words - IBM's site is one of the simplest to read and understand. 5) The web services are country-specific covering all services for a given country. This is a huge competitive advantage because IBM operates out of more than 170 countries! 6) The 'support and services' part of its website is designed very well - it is simple and easy to use. 7) It's e-commerce facilities are built on its own CommercePOINT platform - The platform details are shown below: Picture 2 - Source: wolrath.com 8) It has solid partner services in the form of 'IBM Partnerworld' - All partner business facilities are available as part of this website. 9) It has a very robust data warehouse and business intelligence back-end to interpret web requests and serve the relevant information. Competitive Advantages of web services The key elements that make IBM stand out apart from its competitors such as HP, Accenture and others are as follows: a) The Websphere web services platform has become very popular and it is even used by competitors today for packaging and use web application services. b) Its back-end mainframes are very robust and are built with the longest duration of research and development within the market. c) Its country-specific services are completely localized to individual countries and this has proven very useful for marketing and sales targeted at...It is therefore chosen as the subject of this business analysis. The analysis is divided into three parts as follows: d) IBM is a big supporter of open source development. It has built a separate web facility called 'DeveloperWorks' to help software and IT professionals. This is hugely popular and is seen as an advantage over competitors. e) The PartnerWorld web portal for its developers is used very well by its several partners. IBM has been a strong partnering company right from the beginning and this strength has come over to its web services for the partners as well. IBM has been a company of radical change all through its decades of existence. The Organization is traditionally known to be very conservative and formal in its management style - but surprisingly, it has made very strong and firm moves repeatedly to meet changing market conditions and demands. Major changes are discussed below: i. The turning point in IBM's history was when the company decided to enter the field of digital computers (manufacturing) in the early 1950's.