Applied Concept Paper Essay

Executive SummaryThe purpose of this paper is to uphold me to fully realise and expand my knowledge of the concepts four in our text maintain. By performing research near recent line of merchandise mankind activities, I set aside be able to link the damage learned in the lecture in install to get the full picture. Although I chose wrong that atomic number 18 found in some(prenominal)(prenominal) chapter 6 and chapter 7, most of my wrong come from chapter 7, which talks about corporate dodging. Our text bear strategical anxiety and Business Policy textbook by Thomas L. Wheelen and J. David Hunger is a great source of information for any one(a) interested in learning more about stock.According to our textbook, the three key issues that corporate strategy deals with are 1. Directional Strategy The firms overall orientation toward resurrectth, st skill, or retrenchment. 2. Portfolio analysis The industries or markets in which the firm competes through its products an d fear social units. 3. Parenting strategy The manner in which management coordinates activities and transfers resources and cultivates capabilities among product lines and business units.From the readings, I chose the terms that I found most interesting. The concepts that I chose from my readings are acquisition, articulatio sham, licensing placements, semipermanent contracts, and strategic alliance. After doing extensive research, I came upon recent obliges that bedevil armed serviceed me to understand the book and encourage me to incorporate the knowledge that I have gained in this class with the real world. In this paper I fully apologise how the terms learned in the textbook relate to recent articles.Abstracts1. Delphi self-propelled closes on FCI unit acquisition, by the Associated Press, Published on Friday October 26, 2012 This article announces the achievement of an acquisition deal that was announced in May of 2012 by the follow Delphi Automotive. This deal was for the acquisition of FCI motorized vehicles unit, which manufactures auto connection systems. The deal price Delphi Automotive 765 million euros ($987.5 million). Delphi Automotive has its headquarters in Troy, Michigan. It was saved by the United States Government in 2005. Since then, the baseball club has recuperated however, it has done so by decreasing its costs, such as, massive layoffs and downsizing its manufacturing business. With this merger, Delphi expects to enlarge its future loot gain an approximate $0.24 per share. 2. Clariant AG Clariant and Wilmar establish pronounce Venture for amines and selected amines derivatives, by Thompson Reuters ONE, Published on Friday, October 26, 2012 This article announces the articulatiot venture among both(prenominal) tumesce established companies Clariant Ltd. and Wilmar International Limited.Clariant Ltd. is a specialty Chemicals Company found out of Swtizerland. It is the parent company to over 100 companies world wide. As of celestial latitude 2011, the company had an approximate 22,100 employees. Clariant specializes in growing its business by mateing or acquiring a variety of firms that will help the company note profitability and piddle a steady issue. Wilmar International Limited is a leading competitor in the agribusiness field of Asia. The company was organize in 1991 and it is based out of Singapore. Some of Wilmars business activities include, crude palm cultivation, oilseeds crushing, edible oils. In addition, the article goes into detail of how the companies will both benefit from this joint venture. Further detail will be discussed subsequently in this paper.3. Hyrax might and WARF enter into licensing symmetry, by Bret Williams, Published on October 26, 2012. This article explains the licensing agreement deal between Hyrax might and the Wisconsin Alumni research posterior (WARF). This licensing agreement is geared toward finding alternative arouse choices for consume rs. Researchers from both Hyrax Energy and WARF have already found new engineering that send away be used to produce alternative unclothe fuels and bendable materials. Furthermore, this licensing agreement allows WARF and Hyrax Energy to commercialize the new alternative fuel and generate profits not only domestically but as well as in the global market in the near future. In addition, the culture of this new technology shows that the economy of the United States can be modify positively with the creation of new jobs and also with increased consumer demand for clean biofuels.4. CareFirst blue thistleCross BlueShield, Healthways Announce Extension of obligation for Disease Management work through 2015, by Business Wire, Published on October 17, 2012 This article is in regards to the file name extension of a long-term contract between the companies CareFirst Blue Cross Blue Shield and Healthways. The companies have been working unneurotic for a few eld and they have been serving about 600,000 members. The extension of this contract signifies that together these ii companies are able to partner to offer their clients better healthcare operate and blockading disease solutions. CareFirst Blue Cross Blue Shield has been in business for 75 years and Healthways is a company dedicated to create healthier human beings. It also serves about 40 million customers in four continents.5. PepsiCo and Suntory Agree to take shape Strategic Beverage Alliance in Vietnam, by Pepsi Co., Published on October 22, 2012 This article discusses the strategic alliance form by PepsiCo and Suntory Holdings Limited. This strategic alliance will help PepsiCo increase its business in Vietnam. Although both companies have both experienced success in this country, their strategic alliance will catapult both companies to new heights. PepsiCo will be in charge of marketing its hard products which include Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana Twister, Lipton and Aquafina. At the same time, Suntory will be in charge of shoot downing its ability to boffoly meet the demands of its Asian customers. These companies have prosperously worked in the ago in other countries, such as, the United States, Japan, and wise Zealand. PepsiCo has been able to grow in the Vietnamese market since entering it in 1994. For Suntory, it is hoping to achieve one of its long-range plans, which is to expand into Vietnam.Concepts1. AcquisitionAccording to Wheelen and Hunger an acquisition is a growth strategy that occurs when a company absorbs another ( unremarkably smaller) company as an operating subsidiary or division of the acquiring corporation. Acquisitions usually bugger off place with companies of distinguishable sizes and they can be hostile or friendly. Acquisitions can also be a hefty way to grow into an external market. For example, a domestic company can purchase another company that is already established and operating in a different country. This benefits th e buying company by trim down the amount of time and money it require to spend on acquiring documentation to enter into such country.2. Joint VentureA joint venture is one type of naiant growth strategy that companies use in instal to penetrate supranational markets. This usually takes place between a domestic company and a foreign corporation. Joint ventures are created when companies wish to combine their resources in order to create new products and/or technologies. Joint ventures can be do among companies or companies with a government agency. By forming a joint venture, companies usually save themselves the possibility of expropriation in a new country by its government. In addition, a joint venture can also help companies penetrate countries that do not allow foreign vendors. (Wheelen & Hunger, 2012) .3. Licensing agreementsA licensing agreement is another growth strategy that companies use in order to increase their profitability. According to Wheelen, under a licensing agreement, the licensing firm grants rights to another firm in the host country to produce and/or sell a accredited product. The licensee pays the licensing firm in return for technical expertise. This strategy is particularly expert when the licensing company is well-established but lacks the resources to enter a new market in a different country.4. Long-term contractsAccording to our textbook, long-term contracts are a type of just integration strategy by the formation of agreements between two firms to provide agreed-upon goods and services to each other for a condition period of time. In order to be considered a type of upright integration, long-term contracts must specify that the contract is reciprocally exclusive and that incomplete firm can enter into the same or a comparable contract with a third party.5. Strategic AllianceLong-term conjunctive arrangements between two or more independent firms or business units that engage in business activities for mutual economic gain. In order to remark up with the continuing growth and demand from consumers, strategic alliances have become a part of modern business. The length of strategic alliances whitethorn vary from a few months to a few years. Although companies benefit mutually from these alliances, conflicts often arise over the companies objectives and control issues. This conflict therefore leads for about 50% of strategic alliances to fail in both domestic and external markets (Wheelen & Hunger, 2012).Analysis1. AcquisitionIn the article Delphi Automotive closes on FCI unit acquisition, I learned how an actual acquisition takes place in the business world. One company, in this case Delphi Automotive, which is larger than FCI meeting, acquired and completely absorbed FCI Groups motorized vehicle unit. This friendly takeover will allow Delphi to expand its global reach and its ability to make electronic connectors for vehicles. In addition, this acquisition will also help Delphi Automotive incre ase its compensation per share in the coming year.2. Joint VentureIn the article Clariant AG Clariant and Wilmar establish Joint Venture for amines and selected amines derivatives, we see an example of a joint venture. From our textbook we have learned that a joint venture is a type of international entry option for horizontal growth of a company. Both Clariant and Wilmar are well established companies. With the formation of this joint venture, they will influence each other with each companys individual strengths in order to increase their growth opportunites.Furthermore, the benefits that Clariant will bring to the joint venture are its Industrial & Consumer Specialties (ICS) Business Units sales activities of relevant amines and defined derivatives to the joint venture as well as its amines limit in Germany and production output from its amines plant in Brazil. At the same time, Wilmar will contribute the venture with the use of its plant in China and also the companys expertis e in oleochemicals and renewable raw materials. The article ends by stating the following Due to its strong roots in Asia combined with plans to expand the business globally, Wilmar is an excellent partner for Clariant to support our customer base in all parts of the world, said Michael Willome, Head of Business Unit ICS.3. Licensing agreementsThis article explains that the companies Hyrax Energy and WARF have entered into a licensing agreement. According to our textbook, companies enter into licensing agreements both domestically and internationally. In this case, the licensing agreement is domestically. Hyrax is a company that emerged from Department of Energy funded cracking Lakes BioEnergy Research Center (GLBRC) and has now entered into a licensing agreement with Wisconsin Alumni Research Foundation (WARF) (Hyrax Energy, Inc., 2012). Hyraxs strategy is to be able to use the in vogue(p) technologies in order to develop alternative biofuels. In addition, Hyrax hopes that the li censing agreement helps it commercialize its biofuels in the United States and with the long term goal of enlargement into the global markets.4. Long-term contractsAccording to the article CareFirst BlueCross BlueShield, Healthways Announce Extension of Contract for Disease Management Services Through 2015, the companies mentioned decided to extend their already prosperous long-term contract. This was an agreement previously made by both firms. This allowed them to provide each companys goods and services to their customers. This way, the companies are successful at reaching more customers and providing better services while reducing their costs.Since the cost of healthcare is rising, the companies are interested in offering preventative solutions in order to minimize future high healthcare costs. Although our book states that recently, companies have moved away from long-term contracts, which is a form of vertical growth strategy, in this case both companies benefit from having co ntracts since they offer different services to their customers, however, such services complement one another. CareFirst BlueCross BlueShield offers health restitution while Healthways offers its consumers preventative ways to stay healthy and thus helps keep the costs minimum for CareFirst BlueCross BlueShield .5. Strategic AllianceIn the article, PepsiCo and Suntory Agree to Form Strategic Beverage Alliance in Vietnam, we learn how two successful companies decide to join their resources to form a strategic alliance in order to gain market share and mutual economic gain. This strategic alliance will help PepsiCo build on its current put down in the Vietnam market, while utilizing Suntorys strong brands and recognizable ability to provide to the Asian market. The strategic alliance by these two companies in Vietnam is judge to have a positive effect for both companies and will help them increase their profits. Alone each company is already successful however, together they expec t to grow their business exponentially.ConclusionResearch and reading the book have taught me to better understand strategies and different techniques that companies use in order to expand their businesses. Companies are in business to create profits they do this by thinking outside the box. Through the articles, I learned that a variety of companies in todays market are ceaselessly searching for ways to succeed. In addition, they must seek new ventures in order to enter both domestic and international markets. Where companies choose to join their competitors in a strategic alliance, or a joint venture, long-term contract, or simply by signing a licensing agreement, these are good options for companies to try in order to succeed in the market and debar a potential acquisition by their biggest competitor.ReferencesAssociated Press. (2012, October 26). News. Retrieved from Yahoo Finance http//finance.yahoo.com/ tidings/delphi-automotive-closes-fci-unit-123219090.html Business Wire. (2012, October 17). CareFirst BlueCross BlueShield, Healthways Announce Extension of Contract for Disease Management Services Through 2015. Rock Hill, South Carolina, Unite States. Hyrax Energy, Inc. (2012, October 27). About. Retrieved from Hyrax Energy http//hyraxenergy.com/ Pepsi Co., I. (2012, October 22). Media Press Release. Retrieved from Pepsico http//www.pepsico.com/PressRelease/PepsiCo-and-Suntory-Agree-to-Form-Strategic-Beverage-Alliance-in-Vietnam10222012.html Press Release. (2012, October 26). Clariant AG Clariant and Wilmar establish Joint Venture for amines and selected amines derivatives. Muttenz, Singapore. Wheelen, T., & Hunger, D. (2012). Strategic Management and Business Policy Toward Global Sustainability. Upper Saddle River, New Jersey Pearson. Williams, B. (2012, October 26). Alternative Energy. Retrieved from Hydrogen Fuel News http//www.hydrogenfuelnews.com/hyrax-energy-and-warf-enter-into-licensing-agreement/856496/