Nature and Nurture Influences on Child Development Essay

When it comes to child development there are two major influences. These influences are nature which are traits we inherit and nurture which are the traits we learn. Nature and nurture are different in several ways but they both play an important role in child development. Although they both influence development the topic of which has the greatest influence in frequently debated. This paper will describe the relationship between nature and nurture, explain the biological, environmental, societal, and cultural influences on child development in relation to nature and nurture, and discuss whether nature or nurture has the most influence on child development. Nature and nurture are different in several ways but share one similarity which is the fact that they both have an influence on child development. Both of them play an important role in how children develop as well as the type of people they will grow up to be. In the video â€Å"Nature vs. Nurture in Child Development† Shirael Pollack states that children are born with some traits and characteristics while they learn others (Pollack, S. n.d.). Nature is one(s) genes. The traits and characteristics that they inherit such as skin tone, eye color, and hair color. Nurture is what they are taught or what they learn from the people around them such as manners; learning to say â€Å"please† and â€Å"thank you†. Read more: Essay explain how children and young people’s development is influenced by a range of personal factors. There are different influences on child development in relation to nature and nurture. These influences are biological, environmental, societal, and cultural. Nature is responsible for the biological influences. Biological influences are traits that are passed parents to their children. They  include appearance, talents, and abilities, and also certain illnesses (Groark, C., McCarthy, S. & Kirk, A., 2014). Nurture is responsible for environmental influences. These are things that are in a child(s) environment that they are exposed to or experience. Nurture can also be responsible for cultural and societal influences on child development which can be instilled subtly through natural interactions with others. The cultural and societal influences can be direct and indirect impacts of culture, race, and ethnicity as well as the powerful effects of economics, gender roles, marriage, divorce, single parenthood, and religion (Groark, C., McCarthy, S. & Kirk, A., 2014). No matter what type of influence there is on child development it is either related to nature or nurture. Some people believe that nature and nurture are partners because of the fact that they both play a role in child development. However, theorists have different views about the two. Some theorists believe that nature is ultimately responsible for growth while other theorists believe that children become whatever their environment shapes them into (McDevitt, 2010). Regardless of what the different views of theorists are on the topic of nature versus nurture, the fact of the matter is that both of them play a role in how children develop and have some type of impact on what and how they will be when they grow up. Both nature and nurture play important roles in child development. Regardless of if one has more of an influence than the other, the fact is that they both impact how children develop. Truth of the matter is that they are different but share one important factor which is the fact that they help make children who they are. This paper described the relationship between nature and nurture, explained the biological, environmental, societal, and cultural influences on child development in relation to nature and nurture, and also discussed which of the two influences is more influential than the other. References Groark, C., McCarthy, S. & Kirk, A. (2014). Early child development: From theory to practice. Bridgepoint Education: San Diego, CA. McDevitt, T.M. (2010). Nature and nurture: Retrieved from http://www.education.com/reference/article/nature-nurture/ Pollack, S. (n.d.). Nature vs. nurture in child development [Video file]. Retrieved from http://www.howcast.com/videos/513307-Nature-vs-Nurture-Child-Development

Faith Statement

Faith Statement My faith has grown immensely over the years. Throughout my faith journey everyone at the church and in my family has influenced my life in faith. To me when you are baptized it means your parents are making you a child of God but when you get confirmed you are accepting your baptism and becoming a member of the church. Jesus is a big part of mine and everyone’s life because he died on the cross to save our sins.We pretty much all take advantage of Jesus’s love. Everyone makes mistakes, some foolish, but still Jesus will always forgive us and love us. Also, even though I know I will be forgiven, church has taught me that we should all try to do our best at doing what God wants us to do and the right thing. Since I’m a Christian, whenever I am about to do something that I think God wouldn’t want me to I think it over and try to make the best choice.I think that Holy Communion affects my life by making me feel clean and saved. Prayer is very v ital to me. Going to church has taught me that if I pray to God for help in something most of the time he delivers but when he doesn’t it’s not because he isn’t listening but simply because it’s not meant to be. Throughout the years, I have learned to help God and serve around the community. After I get confirmed I will still attend church and do service projects to help others.

Performance of Fresh And Hardened Concrete Essay

Performance of Fresh And Hardened Concrete - Essay Example The researcher states that today there is an increasing trend for using recycled materials to create new concrete in order to increase sustainability and decrease costs among other factors. The effects of the recycled aggregates on the created concrete can be minimal to significant depending on a host of factors. The properties of concrete are affected both in the fresh state and in the hardened state and so there is great need to understand how the use of recycled aggregates affects concrete. The various kinds of recycled aggregates in use include recycled concrete aggregate (RCA), recycled wash glass sand, recycled rubber tyres and others. This text will attempt to analyse the effects of recycled aggregates on the fresh properties of concrete and on the properties of hardened concrete. Based on the investigations and results presented above it is obvious that the addition of recycled aggregates affects the properties of concrete significantly. The inclusion of recycled aggregates t o concrete helps to increase the sustainability and reduce the cost of the build but compromises on the strength achieved. Therefore concrete created with these methods can be utilised for less demanding tasks that require lower loading. In some cases however, the addition of aggregates has helped improve some of concrete’s abilities especially fresh concrete’s workability and other properties. More investigation into creating concrete with the inclusion of aggregates can help to boost sustainability and decrease costs further.

Plastic ban Essay Example | Topics and Well Written Essays - 750 words

Plastic ban - Essay Example Recently, there was a motion to ban the use of plastic bags in Oregon. The aim is to subsidize use of plastic bags by imposing a tax on the consumers (Ketcham 1). The ban on plastic bags will impact negatively on the lives of people economically due to loss of jobs and additional taxes being levied on the citizens. There are many negative factors that will be as a result of the ban. Plastics have been in existence since the 16th century. They are a product of petroleum oil extracts. The extracted chemicals are heated under pressure and then molded into definite shapes for various uses in households and even in industries (American Chemistry Council). Plastic bags are a product of the above process. They have a lot of uses in industries and even in households. Plastic bags are mainly used for packaging purposes in shops globally. This makes transportation of goods convenient. Plastic bags are also used in storage of various substances. They are waterproof and this ensures that the stored substance is not degraded by moisture in the atmosphere. In households, plastic bags are used to collect waste materials. However, plastic bags contribute to environmental pollution. They are non biodegradable and this makes their disposal time consuming and expensive (Friedman 2). The aim of placing a ban on their use is to help reduce environmental pollution by encouraging the ir recycling. It is not economical financially to ban the use of plastic bags in Oregon. A lot of time and money has been spent on funding the debate on the use of plastic bags (Eoin 1). The money that is being exhausted to hire analysts to decide on the tax to be imposed can be channeled into management activities that will produce an overall reduction in environmental pollution. The tax being levied for use of plastic bags by consumers decrease their income. A statistical report by Wayne shows that annually, an individual will use $ 27 in buying of

Could you be an Entrepreneur Essay Example | Topics and Well Written Essays - 2000 words

Could you be an Entrepreneur - Essay Example These people are still alive in history, in their inventions and in the hearts and minds of the people, and they continue to inspire many people. However, the dark side of entrepreneurship is that not all people make it to level where they earn a place in the history. In fact, statistics reveal that more than half of the small businesses fail in their first year of business. Furthermore, the bankruptcy fillings have been increasing over the past few years (Keister, pp. 19-23, 2005). This paper is an attempt to explore the reasons of the same. The paper would present the reasons why majority of the entrepreneurs fail to manage their growth phase and what allows entrepreneurs to do the same with effectiveness. Discussion Following are some of the reasons why entrepreneurs fail to manage their growth. Growth Strategy One of the biggest issues entrepreneurs face once they have overcome the inertia of business is the absence of a clear strategy. Most small businesses are opened based on i ntuitions, advices of colleagues, peers, family and friends, raw data, assumptions and others. Furthermore, since most entrepreneurs want to make it simple, they do not plan things extensively, and just allow things to â€Å"let happen.† Entrepreneurs prefer their business to be a rollercoaster ride rather than planning and strategizing like other businesses do (Kuratko, pp. 287, 2008). However, once they get going and enter into their growth phase, they fail to understand that the reactive approach, unplanned approach, uncalculated, intuition based strategy is less likely to work. When a firm grows, it is exposed to the market competition and other competitive forces like that of buyer power, supplier power, threat of new entrants, and threat of substitute products. When a firm grows, it catches the attention of many competitors and rivals, which had previously avoided the entrepreneur as posing no threat (Audretsch, pp. 23-43, 2002). Therefore, the point is that while growi ng, an entrepreneur has to choose a clear and well-defined growth strategy (Bygrave & Zacharakis, pp. 78-79, 2010). Now successful entrepreneurs are able to understand that there are only three types of four distinct types of growth strategies available for the firm. These are ‘penetration strategy, product development strategy, market development strategy, diversification strategy’ (Crane & Meyer, pp. 112-115, 2010). Penetration strategy calls for operating in the existing market with the existing product. The idea here is to increase the usage of customers by encouraging them to buy more of the same product. The same can be done with the help of marketing, promotional offers, little modifications in the product and others. Important here to note is that the entrepreneur would not look to target any other customers, segment or try to take away share from other competitors (Crane & Meyer, pp. 112-115, 2010). By pursuing a market development strategy, the entrepreneur tr ies to reach out new geographic, demographic, psychographic, and other markets and segments for its existing product. Moreover, it is also possible to pursue a market development strategy by communicating a new use of the product thus increasing the customer base. Successful entrepreneurs may also go for product developme

Case stydy Study Example | Topics and Well Written Essays - 500 words

Stydy - Case Study Example This has led to a significant decline in demand in as much as there has been a steady rise in airline services. BA has practically dominated the airline industry in the UK. This is because it is rated as one of the major airlines in the UK with more than 200 destinations distributed in 90 countries. It therefore experience less stiff competition and employs aggressive strategies to provide services to even more customers. BA, through various alliances is very keen to remain on top of competition in the industry as through the alliances, it is able to gather more resources and reach more people through additional destinations. Its products are segmented into different classes in order to be able to serve more customers who fall under different consumer categories. Through the segmentation of classes, BA is able to provide airline services to various groups of customers at different prices, hence having everything for everyone. It therefore remains at the edge of competition as it attracts customers from all sorts of social classes. The airline also engages in a variety of service provisions su ch as mail and freight services and other support services in order to increase customer coverage. Due to its aggressiveness, it is able to dominate the UK airline industry by having more passengers than all its other rivals. The strategies of BA are those that are not focusing on the real market situation. They try to do their business without any preparation for any eventuality. This is shown by the economic downturn that struck the company for close to 3-4 years. Such a strategy is not healthy for such a major airline as it might result to tremendous losses. The strategies of Ryanair can be classified as those that focus on different market situations and make an airline be ready for any eventuality. This is evidenced after the economic downturn that led to other airlines facing their exit from the market but instead,

Critically assess whether strategic HRM leads to 'high performance Essay

Critically assess whether strategic HRM leads to 'high performance - Essay Example Hence to survive in such a globally competitive environment organizations emphasize on attaining a competitive edge. An aligned strategy with HRM is a source to successful competitive edge businesses can achieve that focuses more on company’s resources than its costs. This is the reason that the role of HRM has been under the limelight recently as it serves as a competitive advantage to the companies it also has to deal with the challenging changes (Armstrong 2011). Unlike personnel management human resource management is linked to strategic level planning of the organization and execution of those plans in order to improve the organization’s overall performance. Human Resource Management is related to company’s vision, philosophies, practices, and policies that are influencing the management of people in a company. Strategic HR means aligning HR function with the company's strategies and then formulates and implements those strategies accordingly with the help o f HR activities such as recruiting, selecting, training and rewarding personnel. (Armstrong 2011; Reilly 2012) There are few theoretical perspectives to the Strategic Human Resources Management. First approach is the Universalist approach .This approach refers to one best way of dealing human resource to improve business performance only. It is also known as the best practice human resource management. This approach states that there is only one way people can be managed in order to improve the performance of the organization. Regardless of differences amongst different organizations, differences like size of the organization, to which sector it belongs, all organizations can be managed in same way by identifying a set of best HRM practices, committing to them despite the practical difficulties and applying and implementing them. This approach also measures organizational success in terms of financial performance. Results from past experimentations reveals that this approach leads t o high performance and it is becoming common to group or combine HR practices in order to create more coherent explanations of the HRM-performance link. (Gooderham, Cranfield, Ringdal, 2008 pg 7) Second theory is the Configurational theory that proposes that the relationship between HRM and performance involves complex interactions between bundles of HRM activities and outcomes. Once these complementary practices are bundled they produce high performance results and outputs than individual HRM practices. Firms have realized that rather than altering individual policies, their combinations are a better determinant and should be altered and worked upon to achieve better productivity. (Gooderham, Cranfield, Ringdal, 2008) There is a drawback of this approach as this approach has this assumption that HRM bundles and combinations are ideal and will give the same effective result under all circumstances. Secondly both universalistic approach and cofigurational approach are closely related approaches and it is problematic to differentiate between these two approaches at times. Groups of HR practices combined additively may clearly be universalistic but the identification of a configurational approach is sometimes problematic. (Gooderham, Cranfield, Ringdal,2008) Second, approach is the Contingency approach. Contingency approach is to create a positive impact on businesses by aligning HR

UNIX SHELLS Essay Example | Topics and Well Written Essays - 500 words

UNIX SHELLS - Essay Example Hence, interpreting login commands that will result to the anticipated result. Undeniably, UNIX serves a critical role in the current technological knowhow though to date it has undergone varied and essential developments that give it an advantage over, which this study seeks to highlight. Compared to other operating systems as well as varied computer technological enhancements, what I like regarding UNIX is its speed (Liu, Yue & Guo, 2011). However, historically this has been improving since its inception in 1960s up to date to the extent of being able to numerous daemons that known to operate manually or slowly in UNIX’s absence (Liu, Yue & Guo, 2011). This is quite advantageous especially currently, whereby almost each venture has almost completely embraced technology in order to evade commercial opposition from competitors. Additionally, it possesses the capability of aiding multiple segments that necessitate usage of varied network cards by the firewall (Liu, Yue & Guo, 2011). Mostly, this is at least 32, which is contrary to the practical Netware’s support that has a limit of 16 and windows strictly limited to four (Parker & Morley, 2014). Another aspect that I like about this system encompasses its compatibility whereby poses a capability of suppo rting word processors including WordPerfect as well as StarOffice (Liu, Yue & Guo, 2011). In customizing this system, it entails adequate knowledge coupled how to navigate with ease to ensure the intended adjustments work as necessitated (Robbins, Hannah, Lamb & Lamb, 2008). However, there are varied ways of customizing this system whereby on my side I would encompass setting the right margin such that it will be prompting to wrap sentences automatically (Robbins, Hannah, Lamb & Lamb, 2008). This is without one or user having to execute that command with the aid of a ENTER key thus saving on time (Robbins, Hannah, Lamb & Lamb,

Mechanical Engineering Research Paper Example | Topics and Well Written Essays - 1750 words

Mechanical Engineering - Research Paper Example Bureau of Labor Statistics 1; America Society of Mechanical Engineers 1). He is also required to understand things such as the ability of the product to persevere the thermal environment and the forces they will be subjected to. Mechanical engineering plays a critical role in industries such as automotive (car chassis, transmission, sensors and engines), aerospace (control systems for spacecraft and airplanes, aircraft engines, and airplanes), biotechnology, (prosthetic devices, and implants), and other industries such as computers and electronics (semiconductor tools, cooling systems, disk drives and printers). In other words, mechanical engineering takes care of everything that moves (Columbia University 1). Mechanical engineering is a field that includes a broad collection of research areas. Mechanical engineering entails the design, analysis, control, and manufacture of fluid, thermal, and solid mechanical systems. It also involves system integration, innovation use of technology, and creation and development of new markets and products, and it offers the solution to problems facing products (National Research Council 2). This entails optoelectrical-mechanical materials, machines, structures, and Nano- and micro scale devices. The most important aspects of the field include combustion, heat transfer (and other processes of energy conversion), fluid mechanics, tribology, biomechanics, solid mechanics (fracture mechanics also included), and education and management linked with the above areas (National Research Council 3). Mechanical engineering is central to the success of medicine. It plays an important role in medical instrumentation, medical devices, prostheses, and tissue engineering. It also plays a critical role in accomplishing energy independence. The national response to alternative energy sources involves the science of mechanical engineering, and

Family work Assignment Example | Topics and Well Written Essays - 500 words

Family work - Assignment Example c) I think the US should regulate working hours to se to shield workers in both public and private sectors from being exploited. An eight hours working day should be acceptable and employees should only work for five days. Any overtime should be a request and compensated commensurately. In setting such a law I will consider ILO and other international organizations as well as the UN guidelines on work hours. d) Closing borders is a good measure that will help prevent illegal immigration into the US. However, focusing on the demand side for labor by illegal immigrants you see a need for punishing employers. Firstly, sneaking into a country to earn a living is less grievous a crime compared to sneaking around fair-labor to employ low-wage immigrants. Sneaking around fair labor standards encourages the employment of illegal immigrants on poor wages. Such employers should be fined heavily so as to bar them from repeating their unethical acts. Nations differ markedly in a number of issues. One notable difference among nations is culture; all nations of the world have unique cultures which not only influence development but also the way of doing business. In China for instance business is greatly influenced by strong relationships and trust while in the west the business environment runs on the principal of capitalism where contractual agreements are influential. Approaching business can therefore differ significantly from the west. Another notable difference is the legal environment; some nations encourage free markets while others such China protect certain sectors perceived as being important to the national economy. Labor laws also differ with some nations focusing a lot on rights of employees while others don’t. in China for instance laws on copyright are not well developed and therefore proprietary issues can easily arise when doing business. The United States differs with developing

English speech Essay Example for Free

English speech Essay Morning/Afternoon, fellow students. As all of you have had the unfortunate task to study belonging as part of the hsc, and many of you are sitting here zoning my speech out but belonging to people and place is one of the main reasons why we want to belong. In Orson Scott Card’s novel Enders Game it is a major struggle for young Ender Wiggin and he feels like he will never belong. Belonging is not welcomed but is still portrayed deeply in Sean Penn’s film Into the Wild with Chris McCandless never fully understanding the concept of belonging. These texts demonstrate belonging both differently and similarly to Steven Herrick’s free-verse novel The Simple Gift. The human kind has always looked for people to belong to as it is one the most basic instincts for us humans to look for. Sean Penn had the challenge to demonstrate the life of Chris McCandless. At the age 22 from an affluent background Chris felt like he did not belong in the life he was living and unlike most people his age he got and left his life behind him and â€Å"risked†¦ a relentlessly lonely path†. Penn uses narration to explain how Chris had the ability to belong to a father like man (Ron) but instead Chris continued to walk down the lonely path. Through the flashbacks in scenes on Chris’s life with Rainey and Jan Burres, who practically begged Chris to stay with them and have the chance to belong but still he didn’t take that chance. Sean Penn is able to illustrate that Chris’s understanding of belonging was obscure. But still Chris couldn’t find the ability to belong to other people and took his whole lifetime to understand that â€Å"Happiness is only real when shared.† In The Simple Gift Billy a similar person to Chris but unlike Chris, Billy had the ability to belong to people and was able to settle down because of his sense of belonging. Orson Scott Card’s protagonist Andrew Wiggin also known as ‘Ender’ was born into a post-modern society and he is referred to as genetically perfect and intellectually smarter and the age of 8 he was asked to leave home and go to train to become the best military leader. The men in charge have one job and it â€Å"is to produce the best soldiers in the World†. Through the uses of irony of creating a child soldier Mazor Rackham (man in charge) assumed that there  would no consequences to Ender’s life, from creating a child military leader, thus this caused Ender to never belong to anyone. Graff (the man who trained Ender) â€Å"wanted to help Ender† but would rather create a better soldier. Through the contradiction of Graff wanting to help Ender but Graff being determined to create a better soldier, which forced Ender into isolation and had no one to belong too. Orson Scott Card is able to portray the effects of lack of belonging on Ender and show how it affects people. Alike to the Simple Gift and Into the Wild both protagonists never felt belonging with their parents. Even both characters may not have faced such a harsh lack of belonging compared to Ender but both Billy and Chris still new the toll it can take on someone. Most people want to belong to a place which causes people to search for belonging and the ability to call a place home. Orson Scott Card’s novel Ender’s Game try’s to demonstrate, how Ender struggled to belong to places but believed that Battle School was â€Å"the only place in the universe where he belonged.† Card uses hyperbole to help the audience understand that the child Ender had made an attachment and belonged to place and thought it as home. When Ender got forced to move on from the only place Ender liked â€Å"He hated it. He wanted to go back home, back to the Battle School.† Through short sentencing Card is able to illustrate that when ender arrives back to his original home he did not belong. The audience is able to understand the desperation for young Ender to get back to his home and belong. Similar to Ender’s Game, The Simple Gift Billy did not now what to do when he knew that he might have to leave his newly founded home. In Sean Penn’s film Into the Wild belonging is not part of Chris’s vocabulary. Chris as a young man had lived in more places than most people can imagine. Chris’s lack of belonging to these places causes him to keep moving from place to place even though he had the chance to belong. Through compressed time of the film shows Chris constantly moving around and demonstrate to the audience that Chris does not understand belonging and missed the happiness he was looking for. At the end of Chris’s life he is able to determine what the true meaning of happiness is and that he had the chance to belong. Through the close up of Chris’s last breath facial expressions shows sadness that Chris had places to belong too but in his dyeing breath he knew that he had missed his chance . Through  this the audience is able to understand that Chris knew that he had the chance to belong to many places. Even though both Ender’s Game and The Simple Gift had places to belong both Ender at his house and Billy at Nowheres Vile, knew how it felt not to belong to a place. Fitting into a place or being able to belong to a group of people is a significant part of the normal person’s life. Sean Penn was able to direct Into the Wild and is able to portray Chris and his very different understanding of belonging. Orson Scott Card’s novel Ender’s Game was able to illustrate the effects of what little belonging can do people. Through these texts and The Simple Gift all three composers were able to demonstrate similar and differently the effects of belonging to people and place.

Is Genetics the New Eugenics Essay Example for Free

Is Genetics the New Eugenics Essay Introduction As a rÐ µsult of gÐ µnÐ µtic dÐ µvÐ µlopmÐ µnts sincÐ µ thÐ µ Ð µarly 1970s, nÐ µw knowlÐ µdgÐ µ and subsÐ µquÐ µntly nÐ µw forms of control ovÐ µr DNA, human biology and thÐ µ physiological procÐ µssÐ µs rÐ µlating to hÐ µalth and disÐ µasÐ µ havÐ µ bÐ µgun to Ð µmÐ µrgÐ µ. HowÐ µvÐ µr, thÐ µ rapid and accÐ µlÐ µrating progrÐ µss bÐ µing madÐ µ in what is now bÐ µing rÐ µfÐ µrrÐ µd to as thÐ µ nÐ µw gÐ µnÐ µtics has consÐ µquÐ µncÐ µs far bÐ µyond thÐ µ application of gÐ µnÐ µtic tÐ µchnologiÐ µs and tÐ µchniquÐ µs in laboratory sÐ µttings. Swiftly accumulating gÐ µnÐ µtic knowlÐ µdgÐ µ from thÐ µ Human GÐ µnomÐ µ ProjÐ µct is promising to rÐ µvolutionizÐ µ thÐ µ study and trÐ µatmÐ µnt of gÐ µnÐ µtic disÐ µasÐ µs, Ð µspÐ µcially thosÐ µ that arÐ µ sÐ µvÐ µrÐ µly disabling or fatal, or for which contÐ µmporary trÐ µatmÐ µnts arÐ µ not appropriatÐ µ. ThÐ µ dÐ µvÐ µlopmÐ µnt of nÐ µw gÐ µnÐ µtic tÐ µchnologiÐ µs has rÐ µsultÐ µd in comparisons bÐ µing drawn bÐ µtwÐ µÃ µn thÐ µ many terrible atrocitiÐ µs oncÐ µ pÐ µrpÐ µtratÐ µd in thÐ µ namÐ µ of Ð µugÐ µnics and what might happÐ µn in thÐ µ futurÐ µ. In thÐ µ minds of most pÐ µoplÐ µ, Ð µugÐ µnics is usually associatÐ µd with Ð µnforcÐ µd stÐ µrilization, racism, rÐ µstrictivÐ µ immigration policiÐ µs and Nazi concÐ µntration camps. (GlovÐ µr) ThÐ µrÐ µ is a dangÐ µr that thÐ µ public and nursÐ µs will look at thÐ µ nÐ µw gÐ µnÐ µtics and simply claim that it is unaccÐ µptablÐ µ to thÐ µm bÐ µcausÐ µ of thÐ µ past. ThÐ µ history of Ð µugÐ µnics in thÐ µ twÐ µntiÐ µth cÐ µntury suggÐ µsts that this is a lÐ µgitimatÐ µ fÐ µar that nÐ µÃ µds to bÐ µ addrÐ µssÐ µd. ThÐ µ ЕugÐ µnics MovÐ µmÐ µnt Although thÐ µ word Ð µugÐ µnics was popularizÐ µd by Francis Galton, thÐ µ intÐ µllÐ µctual history of Ð µugÐ µnics goÐ µs back cÐ µnturiÐ µs to thÐ µ philosophÐ µrs of anciÐ µnt GrÐ µÃ µcÐ µ. ЕugÐ µnic idÐ µas wÐ µrÐ µ discussÐ µd by Plato in ThÐ µ rÐ µpublic, whÐ µn hÐ µ statÐ µd that â€Å"dÐ µfÐ µctivÐ µ off-spring . . . will bÐ µ quiÐ µtly and sÐ µcrÐ µtly disposÐ µd of† and that mÐ µdicinÐ µ administÐ µrÐ µd by thÐ µ statÐ µ â€Å"will providÐ µ trÐ µatmÐ µnt for thosÐ µ . . . citizÐ µns whosÐ µ physical and psychological constitution is good; as for thÐ µ othÐ µrs, it will lÐ µavÐ µ thÐ µ unhÐ µalthy to diÐ µÃ¢â‚¬  (LÐ µÃ µ 1974, p. 174). ЕugÐ µnic thought was also apparÐ µnt in Roman timÐ µs; thÐ µ Spartans usÐ µd to cast out babiÐ µs who wÐ µrÐ µ considÐ µrÐ µd unfit (in somÐ µ casÐ µs bÐ µing fÐ µmalÐ µ was considÐ µrÐ µd unfit), in ordÐ µr to kÐ µÃ µp thÐ µir stock ‘purÐ µÃ¢â‚¬â„¢. ThÐ µsÐ µ Ð µugÐ µnic opinions wÐ µrÐ µ justifiÐ µd as socially accÐ µptablÐ µ bÐ µcausÐ µ thÐ µy wÐ µrÐ µ prÐ µsÐ µntÐ µd in tÐ µrms of bÐ µing in thÐ µ intÐ µrÐ µsts of thÐ µ statÐ µ. This concÐ µrn with thÐ µ intÐ µrÐ µsts of thÐ µ statÐ µ was part of Galtons transformation of Ð µugÐ µnic idÐ µas into a social thÐ µory. Francis Galton was an uppÐ µr-class Еnglishman, a gÐ µntlÐ µman sciÐ µntist, an Ð µxplorÐ µr and a cousin of CharlÐ µs Darwin. HÐ µ is gÐ µnÐ µrally considÐ µrÐ µd to bÐ µ thÐ µ foundÐ µr of thÐ µ Ð µugÐ µnics movÐ µmÐ µnt. (WiklÐ µr 1999) Coining thÐ µ word Ð µugÐ µnics from classical GrÐ µÃ µk roots (Ð µu mÐ µaning wÐ µll and gÐ µnos mÐ µaning birth), Galton claimÐ µd that this nÐ µw concÐ µpt should focus or thÐ µ study of agÐ µnciÐ µs undÐ µr social control that may improvÐ µ or impair thÐ µ racial qualitiÐ µs of futurÐ µ gÐ µnÐ µrations, Ð µithÐ µr physically or mÐ µntally and that it should bÐ µ a sciÐ µncÐ µ which dÐ µals with all influÐ µncÐ µs that improvÐ µ and dÐ µvÐ µlop thÐ µ inborn qualitiÐ µs of a racÐ µ (Galton 1904, p. 82). In 1904 Galton foundÐ µd thÐ µ National ЕugÐ µnics Laboratory, followÐ µd by thÐ µ ЕugÐ µnics Еducation SociÐ µty in 1907, whosÐ µ aim was to Ð µducatÐ µ thÐ µ British public about Ð µugÐ µnics. HÐ µ also Ð µstablishÐ µd thÐ µ acadÐ µmic journal, ЕugÐ µnics RÐ µviÐ µw. (KÐ µvlÐ µs 1999) Although intÐ µrÐ µst in Ð µugÐ µnic idÐ µals first arosÐ µ in Britain, it sprÐ µad rapidly to most of thÐ µ industrializÐ µd arÐ µas of thÐ µ world by thÐ µ turn of thÐ µ cÐ µntury. ThÐ µrÐ µ wÐ µrÐ µ Ð µugÐ µnic movÐ µmÐ µnts in many othÐ µr countriÐ µs, Ð µvÐ µn in thosÐ µ with such disparatÐ µ culturÐ µs as thÐ µ USA, Canada, Russia, FrancÐ µ, Norway, SwÐ µdÐ µn, Italy, ArgÐ µntina, MÐ µxico, South Africa, India, China and Japan. (WÐ µiss 1987) Most industrializÐ µd sociÐ µtiÐ µs wÐ µrÐ µ Ð µxpÐ µriÐ µncing similar changÐ µs and pattÐ µrns of dÐ µvÐ µlopmÐ µnt at thÐ µ start of thÐ µ twÐ µntiÐ µth cÐ µntury. ThÐ µ prÐ µ-Ð µxisting intÐ µllÐ µctual climatÐ µ of social Darwinism, in conjunction with thÐ µ litÐ µraturÐ µ producÐ µd by lÐ µading Ð µugÐ µnicists and thÐ µ Ð µxpÐ µriÐ µncÐ µ of rapidly changing social conditions, such as continuÐ µd industrialization, thÐ µ growth of big businÐ µssÐ µs, thÐ µ sprawling of citiÐ µs and slums, and massivÐ µ migrations from thÐ µ countrysidÐ µ and abroad, all combinÐ µd to crÐ µatÐ µ popular Ð µugÐ µnics movÐ µmÐ µnts in many placÐ µs. (KÐ µvlÐ µs 1995) SÐ µarlÐ µ has aptly summarizÐ µd thÐ µ popularity of thÐ µ Ð µugÐ µnics movÐ µmÐ µnt in Britain bÐ µforÐ µ World War II. (SÐ µarlÐ µ 1976) HÐ µ claims that it gainÐ µd popularity bÐ µcausÐ µ sciÐ µncÐ µ was hÐ µld in high Ð µstÐ µÃ µm during thÐ µ first half of thÐ µ twÐ µntiÐ µth cÐ µntury; it providÐ µd validation of class and racial inÐ µqualitiÐ µs; it was a rÐ µsponsÐ µ to pÐ µrcÐ µivÐ µd inÐ µfficiÐ µnciÐ µs in social wÐ µlfarÐ µ policiÐ µs, and it providÐ µd an altÐ µrnativÐ µ to what was thought of as thÐ µ facilÐ µ Ð µnvironmÐ µntalism of thÐ µ latÐ µ Victorian Ð µra (SÐ µarlÐ µ 1976, pp.114-15). ThÐ µ factors hÐ µ discussÐ µs with rÐ µgard to Britain wÐ µrÐ µ applicablÐ µ to both thÐ µ USA and GÐ µrmany and to Ð µugÐ µnics movÐ µmÐ µnts world-widÐ µ. All sociÐ µtiÐ µs had povÐ µrty, crimÐ µ, prostitution, alcoholism and disÐ µasÐ µ, which wÐ µrÐ µ bÐ µliÐ µvÐ µd to bÐ µ gÐ µnÐ µtically rÐ µlatÐ µd and hÐ µncÐ µ amÐ µnablÐ µ to Ð µugÐ µnic mÐ µasurÐ µs, (KÐ µvlÐ µs 1995) but thÐ µy had nÐ µvÐ µr bÐ µforÐ µ possÐ µssÐ µd thÐ µ wÐ µight of statistical information, Ð µxpanding yÐ µarly by volumÐ µs, that numÐ µrically dÐ µtailÐ µd thÐ µ magnitudÐ µ of its problÐ µms (KÐ µvlÐ µs 1995, p. 72). (n14) All of thÐ µsÐ µ issuÐ µs providÐ µd thÐ µ backdrop against which Ð µugÐ µnics could flourish. ЕugÐ µnic PracticÐ µs Galton dividÐ µd thÐ µ practicÐ µ of Ð µugÐ µnics into two typÐ µs positivÐ µ and nÐ µgativÐ µ both of which Ð µndÐ µavourÐ µd to improvÐ µ thÐ µ human racÐ µ through sÐ µlÐ µctivÐ µ brÐ µÃ µding. PositivÐ µ Ð µugÐ µnics aimÐ µd at Ð µncouraging parÐ µnts with charactÐ µristics or traits that wÐ µrÐ µ dÐ µÃ µmÐ µd laudablÐ µ by sociÐ µty to producÐ µ morÐ µ childrÐ µn, whÐ µrÐ µas nÐ µgativÐ µ Ð µugÐ µnics attÐ µmptÐ µd to minimisÐ µ thÐ µ transmission to futurÐ µ gÐ µnÐ µrations of traits that wÐ µrÐ µ lifÐ µ-thrÐ µatÐ µning, harmful or of no civic worth. ThÐ µ policy mÐ µasurÐ µs that wÐ µrÐ µ advocatÐ µd by Ð µarly Ð µugÐ µnicists during thÐ µ first dÐ µcadÐ µs of thÐ µ twÐ µntiÐ µth cÐ µntury in pursuit of both positivÐ µ and nÐ µgativÐ µ Ð µugÐ µnics wÐ µrÐ µ Ð µxtrÐ µmÐ µly variÐ µd. PoliciÐ µs for nÐ µgativÐ µ Ð µugÐ µnics, howÐ µvÐ µr, wÐ µrÐ µ far morÐ µ common and morÐ µ frÐ µquÐ µntly implÐ µmÐ µntÐ µd, and so arÐ µ discussÐ µd first. ThÐ µ first systÐ µmatic attÐ µmpts to dÐ µvÐ µlop mandatory nÐ µgativÐ µ Ð µugÐ µnic policiÐ µs and programmÐ µs occurrÐ µd in thÐ µ USA. SomÐ µ of thÐ µsÐ µ includÐ µd: stringÐ µnt marriagÐ µ laws which prÐ µvÐ µntÐ µd thÐ µ marriagÐ µ of undÐ µsirablÐ µs, such as pÐ µoplÐ µ with lÐ µarning difficultiÐ µs; voluntary and compulsory stÐ µrilization; sÐ µxual sÐ µgrÐ µgation of pÐ µoplÐ µ with physical and mÐ µntal disabilitiÐ µs; strictÐ µr control of immigrants; and prÐ µmarital physical Ð µxaminations. ThÐ µ primary aim of thÐ µsÐ µ programmÐ µs was to prÐ µvÐ µnt rÐ µproduction by pÐ µoplÐ µ who wÐ µrÐ µ judgÐ µd to bÐ µ unfit. IncludÐ µd in this catÐ µgory of thÐ µ unfit wÐ µrÐ µ thosÐ µ suffÐ µring from insanity, Ð µpilÐ µpsy, alcoholism, paupÐ µrism, criminality, sÐ µxual pÐ µrvÐ µrsion, drug abusÐ µ, and Ð µspÐ µcially fÐ µÃ µblÐ µmindÐ µdnÐ µss. (Hubbard 1986, p.230), as wÐ µll as thosÐ µ suffÐ µring from tubÐ µrculosis and syphilis. (GlovÐ µr) Of all of thÐ µsÐ µ nÐ µgativÐ µ Ð µugÐ µnic options, stÐ µrilization was thÐ µ onÐ µ that was practisÐ µd thÐ µ most widÐ µly. In GÐ µrmany, for Ð µxamplÐ µ, bÐ µtwÐ µÃ µn 1900 and thÐ µ 19308, at lÐ µast 200 000 pÐ µrsons who wÐ µrÐ µ dÐ µÃ µmÐ µd unfit to rÐ µproducÐ µ wÐ µrÐ µ stÐ µrilizÐ µd. (GlovÐ µr 2005, p. 134) In thÐ µ USA in 1927, a notorious SuprÐ µmÐ µ Court casÐ µ uphÐ µld a statÐ µ statutÐ µ for stÐ µrilizing CarriÐ µ Buck, a â€Å"fÐ µÃ µblÐ µ-mindÐ µd Ð µightÐ µÃ µn yÐ µar old who was thÐ µ daughtÐ µr of a fÐ µÃ µblÐ µ-mindÐ µd mothÐ µr and thÐ µ mothÐ µr of an illÐ µgitimatÐ µ fÐ µÃ µblÐ µ-mindÐ µd child† (Annas 1981, p.18). Individuals with mÐ µntal dÐ µfÐ µcts wÐ µrÐ µ bÐ µliÐ µvÐ µd to havÐ µ inhÐ µritÐ µd thÐ µir condition and wÐ µrÐ µ thought to bÐ µ incurablÐ µ. ThÐ µ Ð µminÐ µnt AmÐ µrican judgÐ µ, OlivÐ µr WÐ µndall HolmÐ µs, spÐ µaking for thÐ µ SuprÐ µmÐ µ Court, claimÐ µd: â€Å"It is bÐ µttÐ µr for all thÐ µ world, if instÐ µad of waiting to Ð µxÐ µcutÐ µ dÐ µgÐ µnÐ µratÐ µ off-spring for crimÐ µ, or lÐ µt thÐ µm starvÐ µ for thÐ µir imbÐ µcility, sociÐ µty can prÐ µvÐ µnt thosÐ µ who arÐ µ manifÐ µstly unfit from continuing thÐ µir kind . . . ThrÐ µÃ µ gÐ µnÐ µrations of imbÐ µcilÐ µs arÐ µ Ð µnough. † (Buchanan 2000, p. 46). PositivÐ µ Ð µugÐ µnic policiÐ µs covÐ µrÐ µd mÐ µasurÐ µs dÐ µsignÐ µd to Ð µncouragÐ µ thÐ µ procrÐ µation of bÐ µttÐ µr childrÐ µn and thÐ µ promotion of a Ð µugÐ µnic consciÐ µncÐ µ in sociÐ µty. Many positivÐ µ Ð µugÐ µnicists tÐ µndÐ µd to bÐ µ social radicals, such as GÐ µorgÐ µ BÐ µrnard Shaw, and wÐ µrÐ µ oftÐ µn inclinÐ µd to utopian visions. Galton, howÐ µvÐ µr, advocatÐ µd a systÐ µm of arrangÐ µd marriagÐ µs bÐ µtwÐ µÃ µn pÐ µrsons of distinction in ordÐ µr to producÐ µ giftÐ µd childrÐ µn. HÐ µ arguÐ µd that, in ordÐ µr to augmÐ µnt favourÐ µd stock in Britain, diplomas should bÐ µ givÐ µn to young pÐ µoplÐ µ of thÐ µ highÐ µr classÐ µs and thÐ µir intÐ µrmarriagÐ µ Ð µncouragÐ µd. (KÐ µvlÐ µs 1995) OnÐ µ Ð µxamplÐ µ of a positivÐ µ Ð µugÐ µnic programmÐ µ that rÐ µachÐ µd fruition was thÐ µ spÐ µcial matÐ µrnity hospitals and homÐ µs for Ð µxpÐ µctant mothÐ µrs in GÐ µrmany that wÐ µrÐ µ part of HÐ µinrich HimmlÐ µrs LÐ µbÐ µnsborn programmÐ µ. (WÐ µindling 2000) OthÐ µr Ð µxamplÐ µs includÐ µd calls for thÐ µ rÐ µgistration of midwivÐ µs in thÐ µ hopÐ µ that thÐ µ gÐ µnÐ µral standard of childcarÐ µ would bÐ µ improvÐ µd. In thÐ µ UK proposals wÐ µrÐ µ madÐ µ for tax rÐ µbatÐ µs to hÐ µlp covÐ µr thÐ µ costs of matÐ µrnity and child-rÐ µaring, Ð µspÐ µcially for mÐ µritorious familiÐ µs (KÐ µvlÐ µs 1995, p.91). Although Ð µugÐ µnics is usually associatÐ µd with right-wing Ð µxtrÐ µmists, thosÐ µ on thÐ µ lÐ µft of thÐ µ political spÐ µctrum wÐ µrÐ µ also sympathÐ µtic to Ð µugÐ µnic idÐ µals. ModÐ µrn supportÐ µrs of thÐ µ political lÐ µft oftÐ µn gloss ovÐ µr thÐ µ many historical links with Ð µugÐ µnics. (DustÐ µr 1990) ЕugÐ µnic thought was in closÐ µ continuity with thÐ µ classical idÐ µology of thÐ µ British bourgÐ µoisiÐ µ and many intÐ µllÐ µctuals had rÐ µachÐ µd maturity in thÐ µ Ð µpoch in which social administration and Ð µugÐ µnics wÐ µrÐ µ closÐ µly intÐ µrtwinÐ µd (JonÐ µs 1980, p.170). HowÐ µvÐ µr, World War II and its aftÐ µrmath, during which thÐ µ horrors of mÐ µdical Ð µxpÐ µrimÐ µntation and mass Ð µxtÐ µrmination wÐ µrÐ µ rÐ µvÐ µalÐ µd, is oftÐ µn sÐ µÃ µn as thÐ µ dÐ µcisivÐ µ factor in thÐ µ rÐ µjÐ µction of Ð µugÐ µnics. AftÐ µr thÐ µ War, public opinion rÐ µjÐ µctÐ µd Ð µugÐ µnics and sought altÐ µrnativÐ µ ways of tackling social issuÐ µs. ThÐ µrÐ µ was a shift in dÐ µmocratic statÐ µs toward thÐ µ adoption of collÐ µctivist solutions for social problÐ µms and thÐ µ idÐ µology of Ð µgalitarianism rapidly sprÐ µad across ЕuropÐ µ.

Impact of Mergers and Acquisitions on the TATA Group

Impact of Mergers and Acquisitions on the TATA Group IMPACT OF MERGERS AND ACQUISITIONS ON THE FINANCIALS AND PERFORMANCE OF TATA GROUP In the current globalised economy, mergers and acquisitions are being progressively more used the world over, for increasing competitiveness of companies through gaining better market share, expansion of the portfolio to reduce business risk, to capitalize on the economies of scale and for entering new geographies, etc. This research study was intended to analyze the consequence of going global market through merger and acquisition and traders long and short term earnings .Thereby study the impact of mergers on the financials by examining some pre- merger and post-merger financial ratios, with the sample of firms chosen as three major mergers/acquisitions of TATA Group. The results put forward that there are small variations in terms of post merger financial performance of the joint firm is not considerably different from the aggregate performance of the acquirer and target companies before the merger. INRODUCTION Merger and acquisitions have emerged as chief forces in the contemporary financial and economic environment. They have been a source of corporate growth and in India, it has changed radically after the liberalization of Indian economy. Mergers and acquisitions came up as one of the most efficient methods of such corporate restructuring, and became an essential part of the long-term trade strategy of corporates in India. The sole three chief objectives at the back any MA transaction were found to be: Improving Profitability Rapid growth in scale and closer time to market Acquirement of new technology Many in corporate India would be jealous of the Tata Groups strategy around mergers and acquisition. In the past 8 years, the Tata Group had made 35 overseas acquisitions, including coal and iron ore mines, adding up Rs 78,000 crore, mostly in the past 3 years. Research problem To examine the consequence of going global through mergers and acquisitions and the traders long term and short term earnings respectively. This would aid in studying the impact on companies financials past the merger or acquisition. To also determine the enterprise value of the corporation by comparing it with the peer group and studying the value of the firm Objective of the study To analyze the a thorough detailed case study of 3 companies of Tata Group who merged or acquired in the past years. To evaluate the closing price of 3 companies previous to and post acquisition To weigh up the key financial ratios of 3 companies pre and post acquisition To do valuation of two companies through enterprise value and contrast the value with peer group and examine in detail Review of literature The subsequent studies are the few existing work reviewed which were conducted by researchers in the sight of analyzing the financial performance during and post merger activity across different time periods. Effect of mergers on corporate performance in India, writer Mrs. Vardhana Pawaskar (2001), considered the impact of mergers on corporate performance. A case study, assessed the financial performance of a cloth unit by using ratio analysis. It compared the before and after merger performance of the corporations between 1992 and 2000 to identify their financial character. The study found that the financial fitness was never in the strong zone during the whole study period and ratio analysis highlighted that decision-making incompetence accounted for a good number of the problems. Forecasting the viability and operational efficiency by Mr Mulla through use of ratio analysis, suggested matching up efficiency and success of all facets of management and put the company on a lucrative footing. The study of a sample of firms, restructured through mergers, showed that the merging firms were at the inferior end in terms of liquidity of the industry. The merged firms gave better performance than industry in terms of profitability. Mergers and operating performance by Mr. Mantravadi: An Indian perspective, attempted to examine the impact of mergers on the performance post industrial reforms, by investigating some pre- and post-merger financial ratios, with chosen sample firms, and all mergers linking public and private limited companies The study results suggested that there are minor variations in terms of impact on financial performance of subsequent mergers across different intervals of time in India. It also indicated that for mergers between the same groups of companies in India, there has been deterioration in performance and ROI. Mergers acquisitions in the banking sector presents the Indian scenario, author Mr. Selvam (2007) has analyzed the impacts of stock price changes to mergers and acquisitions behavior taken place in banking industry with particular reference to private and public sector banks. Found that share prices are market sensitive. From the financial analysis it was noted that greater part of the banks went for branch extension and this has affected profitability to some extent and it resulted in harmful competition among the players. To add up the review of literature, many offerings have offered diverse perspectives of merger in different industries globally and explained the valuation techniques followed by merging companies, and shareholders possessions effect due to merger. From the review of several papers evaluating the pre and post merger performance of merged companies, it is incidental that majority of the studies powerfully support the concept of improved post merger performance due to merger and it is valuable to the acquirer companies. METHODOLOGY Methodology of the study Sample selection There are several mergers within the TATA Group during the study period from 01.04.2006 to 31.03.2009. For the purpose of corporate analysis, it was decided to select three of the highest deals which merged/ acquired under the TATA Group during the study period. Hence, the sample size of this study is confined to 3. Besides, while selecting the sample, following points were taken into account. Acquirer and target companies ought to belong to the same industry. Availability of information on the merger and industry. Period of the study The present study covers a period of one year from April 1, 2006 to March 31, 2009. But in order to evaluate the financial performance of sample companies on a comparative basis, 15-20 days before merger and after merger were considered. Sources of data The present study fundamentally depends on secondary data. The required data on financial performance prior and post merger were composed and they were obtained from Prowess software, Internet sources, Business Journals (ICFAI JOURNAL ON M A) The data were also collected from books, and newspapers. Tools used In order to study the financial performance of acquirer and target companies, ratios Debt-Equity Ratio, ROCE (%),net profit margin, P/E, EPS, OPM(%) and valuation. (1) Analysis of financial performance The pre-merger average performance of the companies were compared with the post- merger performance of the joint firm. The present study attempts to calculate and study the pre and post merger performance of acquirer and target companies by using financial ratios in order to determine whether mergers resulted in shareholders wealth or not. Accordingly, the following null hypothesis has been tested: H0: The post merger financial performance of the combined firm is not significantly different from the aggregate performance of the acquirer and target companies prior to the merger. (2) Ratios Debt-Equity Ratio: A gauge of a companys financial leverage obtained by dividing  the total liabilities  by  stockholders equity. It shows what proportion of equity and debt the company is presently using to finance their assets. Return On Capital Employed (ROCE) : ROCE compares earnings with the invested capital in the company. It is like Return on Assets (ROA), but also considers sources of financing Net profit margin: The profit margin says how much profit a company makes for every 1 Rupee it generates in revenue or sales. Profit margins vary with industry to industry, but all else being equal, the greater a companys profit margin compared to its competitors, the better. P/E: It is a gauge of the price paid for a share relative to the annual net income or the net profit earned by the firm per share. EPS: The portion of a companys profit which is allocated to each outstanding share of common stock.  Earnings per share  acts as an indicator of  a companys profitability. OPM: Operating margin is a measurement of the proportion of a companys revenue that is left over after variable costs of production such as wages, and raw materials have been paid. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt. Also known as operating profit margin and net profit margin. (3) Enterprise Value Enterprise value is a figure that, in theory, represents the entire cost of a company if someone were to acquire it. Enterprise value is a more accurate estimate of takeover cost than market capitalization because it takes includes a number of important factors such as preferred stock, debt, and cash reserves that are excluded from the latter metric. ANALYSIS OF DATA TATA GROUP OF COMPANIES One of the Indias largest business groups in the country. It has about 96 operating companies. Diverse business in 7 sectors. Revenues equivalent to 5.3% of Indias GDP. Group revenue FY 2008: Rs 251,543 Cr. / $ 62.5 b. Group profit FY 2008: Rs 21,578 Cr. / $ 5.4 b .Its 27 publicly listed companies have a combined market capitalization which is the 2nd highest among all business houses in India. Largest employer in private sector over 300,000 employees. A shareholder base of over 2.9 million. Operations in over 80 countries. Products and services exported to 85 countries Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251, 543 crore), of which 61 per cent is from business outside India. The group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. The business operations of the Tata group currently encompass seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The groups major companies are beginning to be counted globally. Considering two of the largest mergers of TATA Group -Tata Steel became the sixth largest steel maker in the world after it acquired Corus. -Tata Communications is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers. TATA STEEL-CORUS About the acquisition Date: 30th March 2007 Acquirer: Tata Steel Limited Target company: Corus Plc. Stake: 100 % Deal amount: US$ 12201 m Sector: Steel sector MERGER On January 31, 2007, India based Tata Steel Limited (Tata Steel) acquired the Anglo Dutch steel company, Corus Group Plc (Corus) for US$ 12.20 billion. The merged entity, Tata-Corus, employed 84,000 people across 45 countries in the world. It had the capacity to produce 27 million tons of steel per annum, making it the fifth largest steel producer in the world as of early 2007. Before the acquisition, the major market for Tata Steel was India. The Indian market accounted for sixty nine percent of the companys total sales. Almost half of Corus production of steel was sold in Europe (excluding UK). The UK consumed twenty nine percent of its production. After the acquisition, the European market (including UK) would consume 59 percent of the merged entitys total production. DEAL : An auction was initiated on January 31, 2007, and after nine rounds of bidding, TATA Steel could finally clinch the deal with its final bid 608 pence per share, almost 34% higher than the first bid of 455 pence per share of Corus. Synergies There were many likely synergies between Tata Steel, the lowest-cost producer of steel in the world, and Corus, a large player with a significant presence in value-added steel segment and a strong distribution network in Europe. Among the benefits to Tata Steel was the fact that it would be able to supply semi-finished steel to Corus for finishing at its plants, which were located closer to the high-value markets The Pitfalls Though the potential benefits of the Corus deal were widely appreciated, some analysts had doubts about the outcome and effects on Tata Steels performance. They pointed out that Corus EBITDA (earnings before interest, tax, depreciation and amortization) at 8 percent was much lower than that of Tata Steel which was at 30 percent in the financial year 2006-07 COMPANYS RETURN BEFORE AND AFTER ACQUISITION PRE-ACQUISITION POST-ACQUISITION FINDINGS As we can see from the line chart that the %cumulative abnormal return before acquisition was sharply decreasing since past month with not even a single glimpse of positive return on any single day. But as soon as the acquisition took place, the earnings showed a marginal rise and again got back to the level where it was just before the acquisition. This happened due to very large debt generated due to overpaying by acquiring the Corus at a very high price of 608 pence per share as compared to previously valued 455 pence per share. INTERPRETATION Debt equity ratio on post acquisition increase because Corus debt was high it was GBP1.6b to buy Corus and so its debt is almost 116% more than in pre acquisition. ROCE shows that post acquisition is very less as compared to pre acquisition it has negative percentage because company has short term returns after one year it will improve in the long run. Net profit margin has very less change as profit is not much affected. P/E increases in post acquisition by 30.2% which show high future cash flow. ROE is decreasing by 37.7 which show that it has more debt than equity. EPS has a very minor change. Operating profit margin is reduced by 9.1% which shows that it has low profit. TATA COMMUNICATION-NTT DOCOMO About the acquisition Date: 13th November 2008 Acquirer: Ntt-Docomo Target company: Tata Teleservices Ltd. Stake: 26 % Deal amount: US$ 2700 m Sector: Tele-communication MERGER Tata Teleservices has sold a stake of 26% to Japans NTT DoCoMo. The deal value is $2.7 bn. Tata Tele has 30 million CDMA subscribers and is rolling out its GSM services. Some say the deal is over-valued and some say its not easy to put value on the fastest growing mobile market in the world. India is the fastest growing market second only to China. It adds 10mn subscribers every month. The current subscriber base stands at 300+million and is expected to be 700 million in 2012. That is almost double to todays numbers. The Road ahead Great deal it may be, but it has its risks. One reason is that telecom deals have been controversial in recent times. This goes back to late last year when the government sold pan-India licenses for $333 million apiece, amid a welter of controversy. DoCoMo, in accordance with regulations of the Securities and Exchange Board of India, expects to make an open offer to acquire up to 20 per cent of outstanding equity shares of Tata Teleservices Maharashtra (TTML), a Tata telecommunication company, through a joint tender offer along with Tata Sons. TTSL and TTML through the Tata Indicom brand, have increased their combined share of the fast-growing Indian mobile market and their combined subscriber base now stands at over 30 million. TTSL expects to leverage DoCoMos expertise in the development and delivery of value-added services, where DoCoMo is a firmly established market leader. FINDINGS Debt equity ratio on post acquisition debt is increasing which shows company debt is increasing after merger. ROCE is constant it has not change much.Net profit margin increases by 11.10 as it income increases in post acquisition as compared to pre acquisition. P/E highly increases in post acquisition from 0 to 12%. ROE is decreasing by 1.53% which shows that it slightly more debt than equity. EPS is increasing drastically by 24.27% which is very profitable for investors. Operating profit margin is increased by 15.43% which shows that company profit margin is very fairly profitable. COMPANYS RETURN BEFORE AND AFTER ACQUISITION PRE-ACQUISITION POST-ACQUISITION INTERPRETATION The return of the target company Tata Communication has been very poor since the past 15 to 20 days before the acquisition but it almost got to break-even soon after the acquisition date. This sustained for the next 8 to 10 days but again got back into negative returns zone due to poor customer support to the newly entered Docomo brand in highly competitive communications market in India. TATA MOTOR JLR About the acquisition Date: 27th March 2008 Acquirer: Tata Motors Ltd Target company: Jaguar Land Rover Stake: 100 % Deal amount: US$ 2300m Sector: Automotive Detailed Case Study In June 2008, India-based Tata Motors Ltd. announced that it had completed the acquisition of the two iconic British brands Jaguar and Land Rover (JLR) from the US-based Ford Motors for US$ 2.3 billion. Tata Motors stood to gain on several fronts from the deal. One, the acquisition would help the company acquire a global footprint and enter the high-end premier segment of the global automobile market. After the acquisition, Tata Motors would own the worlds cheapest car the US$ 2,500 Nano, and luxury marquees like the Jaguar and Land Rover. Though there was initial skepticism over an Indian company owning the luxury brands, ownership was not considered a major issue at all. According to industry analysts, some of the issues that could trouble Tata Motors were economic slowdown in European and American markets, funding risks, currency risks etc. The Challenges Morgan Stanley reported that JLRs acquisition appeared negative for Tata Motors, as it had increased the earnings volatility, given the difficult economic conditions in the key markets of JLR including the US and Europe. Moreover, Tata Motors had to incur a huge capital expenditure as it planned to invest another US$ 1 billion in JLR. This was in addition to the US$ 2.3 billion it had spent on the acquisition. Tata Motors had also incurred huge capital expenditure on the development and launch of the small car Nano and on a joint venture with Fiat to manufacture some of the companys vehicles in India and Thailand. This, coupled with the downturn in the global automobile industry, was expected to impact the profitability of the company in the near future CURRENT SCENARIO In less than three years after its acquisition, Jaguar Land Rover has metamorphosed from a millstone around Tata Motors neck into its crowning jewel. In the June 2010 quarter, JLR division accounted for nearly 70% of the companys net profit and over 60% of its revenues on the consolidated basis. This was more than what the market has expected and the stock is up by nearly 150% in the past two trading sessions. JLR benefited from an improvement in its pricing power and a favourable exchange rate in the US dollar and the euro. The two worked in tandem and resulted in a sharp 60% jump in JLR revenue per unit to around  £38,000 in June 2010 quarter compared to the  £23,800 a year ago. With the raw material costs remaining benign, it led to a sharp improvement in the divisions operating margin and its reported net profit of  £221 million (`1,613.3 crore) in the first quarter as against a net loss of  £64 million (`467 crore) a year ago. FINDINGS Debt equity ratio is increasing by 42.27% as Tata took loan of banks to acquire JLR.ROCE increases vey high by 343.60% as compared to pre acquisition as it gauges that company that generate its earnings from the total pool of capital which indicates profitability.Net profit margin increases as it income increases in post acquisition as compared to pre acquisition. P/E highly decreases in post acquisition by 60.1% which in investor point of view they will be profitable to invest to get high earning. ROE is highly increasing by 480.15% which shows that it has more equity than debt. EPS is increasing drastically by 480.15% which is very profitable for investors. Operating profit margin is reduced by 41.44% which shows that company profit margin is very less. COMPANYS RETURN BEFORE AND AFTER ACQUISITION PRE-ACQUISITION POST-ACQUISITION INTERPRETATION As we can see from the line chart that the cumulative return before merger was negative and the entire trend is moving in the negative direction due to poor returns of tata motors. A soon as the acquisition took place, the highly profit generating Jaguar as well as Land Rover added to the profit and earnings of the tata motors. The brand value of JLR added to the highly reputable Tata Group and the companys balance sheet. This can be clearly seen in the line chart above. VALUATION AND INTERPRETATION EV Multiples of Tata Corus Tata Steel and Corus Group deal happened at high multiples compared to its peers. We can observe that the average multiples of the peer group company stands half compared to the deal multiples. Sales Multiple: The average sales multiple of its peers is 1.17x compared to the deal of 0.68x of Corus Groups sales. This can be possible due to high sales value, reducing the multiple to 0.68x. The lowest multiple (Steel Authority of India) is at 0.73x. EBITDA Multiple: EBITDA multiple of its peers averages at 4.38x compared to the deal multiple of 7.02x of Corus Groups sales. Even the highest multiple (Jindal Steel Power) is at 4.38x. This is almost half of the deal multiple. It can be observed that Tata played very aggressively. EBIT Multiple: EBIT multiple of its peers averaged at 5.54x compared to the deal of 10.19x of Corus Groups sales. Even the highest multiple (Jindal Steel Power) is at 8.39x. PE Multiple: The PE multiple of the deal is very high on the account that the margins of Corus are very low compared to Tata Steel and other peers. The average PE multiples is 7.95x compared to 68.23x at which the deal haapened. EV Multiples of Tata NTT Docomo The deal of Tata Teleservices and NTT Docomo happened at very high multiples. We can observe that the average multiples of the peer group company stands very low compared to the deal multiples. Sales Multiple: The average sales multiple of its peers is 5.37x compared to the deal of 26.98x (as on 31st March, 2008) of Tata Teleservicess sales. Even the highest multiple (Reliance Communication) is at 9.24x. Thus we can conclude that Tata Teleservices got very good price for its stake dilution for NTT Docmo. EBITDA Multiple: Again the average EBITDA multiple of its peers is very less, 16.35x compared to the deal of 99.81x (as on 31st March, 2008) of Tata Teleservicess sales. Even the highest multiple (Reliance Communication) is at 26.74x. This is a huge difference. NTT Docomo paid 6 times more what it should have paid to Tata. EBIT Multiple: EBIT multiple of its peers is 25.5x compared to the deal of 952.96x (as on 31st March, 2008) of Tata Teleservicess sales. Even the highest multiple (Reliance Communication) is at 41.02x. PE Multiple: The PE multiple for Tata Teleservices is negative as its net income is negative Note: The multiples are high on account that Sales and the profitability of Tata Teleservices is low, inturn giving very high multiples. Its sales stands at Rs. 1,815.5 Cr. compared to the average sales of Rs. 11,490.6 Cr. of its peers. FINDINGS FROM VALUATION OF ENTERPRISE VALUE MULTIPLE Tata Corus Tata Steel and Corus Group deal happened at high multiples compared to its peers. We can observe that the average multiples of the peer group company stands half compared to the deal multiples. Even the highest multiple (Jindal Steel Power) is at 4.38x. This is almost half of the deal multiple It can be observed that Tata played very aggressively as it paid high enterprise value as compared to our analysis. A reason for Corus to be sold is chance to Bail out of Debt and Financial stress. TATA Steel Paid 7.02 Times EBITDA of Corus Enterprise Value. The PE multiple of the deal is very high on the account that the margins of Corus are very low compared to Tata Steel and other peers the only company who has high P/E is Jindal steel. Tata NTT Docomo The deal of Tata Teleservices and NTT Docomo happened at very high multiples. We can observe that the average multiples of the peer group company stands very low compared to the deal multiples. The average sales multiple of its peers is 5.37x compared to the deal of 26.98x (as on 31st March, 2008) of Tata Teleservicess sales. Even the highest multiple (Reliance Communication) is at 9.24x. Thus we can conclude that Tata Teleservices got very good price for its stake dilution for NTT Docomo. The PE multiple for Tata Teleservices is negative as its net income is negative. EBITDA multiple of its peers is very less, 16.35x compared to the deal of 99.81x (as on 31st March, 2008) of Tata Teleservicess sales. Even the highest multiple (Reliance Communication) is at 26.74x. This is a huge difference. NTT Docomo paid 6 times more what it should have paid to Tata. The multiples are high on account that Sales and the profitability of Tata Teleservices is low, in turn giving very high multiples. Its sales stands at Rs. 1,815.5 Cr. compared to the average sales of Rs. 11,490.6 Cr. of its peers. SUMMARY Except Tata Steel- Corus deal, all the other 2 acquisitions was well accepted by not only well accepted by the owners of the company (the shareholders) but even made the entire Tata group come into the eyes of fortune 500 list. In-fact it ranked at 56th position at a global level in 2009 CONCLUSION This study was undertaken to test what is the impact of mergers on the financials of acquiring corporate by examining some pre- merger and post-merger financial, in terms of impact on operating performance. The results from the analysis of pre- and post-merger operating performance ratios for the acquiring firms in the sample showed that there was a differential impact of mergers, for different industry sectors in India. Type of industry does seem to make a difference to the post-merger operating performance of acquiring firms. Expansion through mergers and acquisition is one of the best ways for any domestic company to step outside the shores of India in an international market place and acquit itself as a global player Company can turn into conglomerate in reasonably less time by capitalizing on its strengths of efficiency and effectiveness by acquiring relatively poor performing companies as TATA did in almost all its group of companies Recent examples of companies which adopted similar pattern of expansion are Renuka Sugars, Arcelor Mittal, Reliance, Essar Group, Aditya Birla Group, etc. One can study any of the above mentioned company and conclude that the key underlying decision of these companies expanding quickly and efficiently is their timely decision of merging and acquiring appropriate companies Impact of Mergers and Acquisitions on the TATA Group Impact of Mergers and Acquisitions on the TATA Group IMPACT OF MERGERS AND ACQUISITIONS ON THE FINANCIALS AND PERFORMANCE OF TATA GROUP In the current globalised economy, mergers and acquisitions are being progressively more used the world over, for increasing competitiveness of companies through gaining better market share, expansion of the portfolio to reduce business risk, to capitalize on the economies of scale and for entering new geographies, etc. This research study was intended to analyze the consequence of going global market through merger and acquisition and traders long and short term earnings .Thereby study the impact of mergers on the financials by examining some pre- merger and post-merger financial ratios, with the sample of firms chosen as three major mergers/acquisitions of TATA Group. The results put forward that there are small variations in terms of post merger financial performance of the joint firm is not considerably different from the aggregate performance of the acquirer and target companies before the merger. INRODUCTION Merger and acquisitions have emerged as chief forces in the contemporary financial and economic environment. They have been a source of corporate growth and in India, it has changed radically after the liberalization of Indian economy. Mergers and acquisitions came up as one of the most efficient methods of such corporate restructuring, and became an essential part of the long-term trade strategy of corporates in India. The sole three chief objectives at the back any MA transaction were found to be: Improving Profitability Rapid growth in scale and closer time to market Acquirement of new technology Many in corporate India would be jealous of the Tata Groups strategy around mergers and acquisition. In the past 8 years, the Tata Group had made 35 overseas acquisitions, including coal and iron ore mines, adding up Rs 78,000 crore, mostly in the past 3 years. Research problem To examine the consequence of going global through mergers and acquisitions and the traders long term and short term earnings respectively. This would aid in studying the impact on companies financials past the merger or acquisition. To also determine the enterprise value of the corporation by comparing it with the peer group and studying the value of the firm Objective of the study To analyze the a thorough detailed case study of 3 companies of Tata Group who merged or acquired in the past years. To evaluate the closing price of 3 companies previous to and post acquisition To weigh up the key financial ratios of 3 companies pre and post acquisition To do valuation of two companies through enterprise value and contrast the value with peer group and examine in detail Review of literature The subsequent studies are the few existing work reviewed which were conducted by researchers in the sight of analyzing the financial performance during and post merger activity across different time periods. Effect of mergers on corporate performance in India, writer Mrs. Vardhana Pawaskar (2001), considered the impact of mergers on corporate performance. A case study, assessed the financial performance of a cloth unit by using ratio analysis. It compared the before and after merger performance of the corporations between 1992 and 2000 to identify their financial character. The study found that the financial fitness was never in the strong zone during the whole study period and ratio analysis highlighted that decision-making incompetence accounted for a good number of the problems. Forecasting the viability and operational efficiency by Mr Mulla through use of ratio analysis, suggested matching up efficiency and success of all facets of management and put the company on a lucrative footing. The study of a sample of firms, restructured through mergers, showed that the merging firms were at the inferior end in terms of liquidity of the industry. The merged firms gave better performance than industry in terms of profitability. Mergers and operating performance by Mr. Mantravadi: An Indian perspective, attempted to examine the impact of mergers on the performance post industrial reforms, by investigating some pre- and post-merger financial ratios, with chosen sample firms, and all mergers linking public and private limited companies The study results suggested that there are minor variations in terms of impact on financial performance of subsequent mergers across different intervals of time in India. It also indicated that for mergers between the same groups of companies in India, there has been deterioration in performance and ROI. Mergers acquisitions in the banking sector presents the Indian scenario, author Mr. Selvam (2007) has analyzed the impacts of stock price changes to mergers and acquisitions behavior taken place in banking industry with particular reference to private and public sector banks. Found that share prices are market sensitive. From the financial analysis it was noted that greater part of the banks went for branch extension and this has affected profitability to some extent and it resulted in harmful competition among the players. To add up the review of literature, many offerings have offered diverse perspectives of merger in different industries globally and explained the valuation techniques followed by merging companies, and shareholders possessions effect due to merger. From the review of several papers evaluating the pre and post merger performance of merged companies, it is incidental that majority of the studies powerfully support the concept of improved post merger performance due to merger and it is valuable to the acquirer companies. METHODOLOGY Methodology of the study Sample selection There are several mergers within the TATA Group during the study period from 01.04.2006 to 31.03.2009. For the purpose of corporate analysis, it was decided to select three of the highest deals which merged/ acquired under the TATA Group during the study period. Hence, the sample size of this study is confined to 3. Besides, while selecting the sample, following points were taken into account. Acquirer and target companies ought to belong to the same industry. Availability of information on the merger and industry. Period of the study The present study covers a period of one year from April 1, 2006 to March 31, 2009. But in order to evaluate the financial performance of sample companies on a comparative basis, 15-20 days before merger and after merger were considered. Sources of data The present study fundamentally depends on secondary data. The required data on financial performance prior and post merger were composed and they were obtained from Prowess software, Internet sources, Business Journals (ICFAI JOURNAL ON M A) The data were also collected from books, and newspapers. Tools used In order to study the financial performance of acquirer and target companies, ratios Debt-Equity Ratio, ROCE (%),net profit margin, P/E, EPS, OPM(%) and valuation. (1) Analysis of financial performance The pre-merger average performance of the companies were compared with the post- merger performance of the joint firm. The present study attempts to calculate and study the pre and post merger performance of acquirer and target companies by using financial ratios in order to determine whether mergers resulted in shareholders wealth or not. Accordingly, the following null hypothesis has been tested: H0: The post merger financial performance of the combined firm is not significantly different from the aggregate performance of the acquirer and target companies prior to the merger. (2) Ratios Debt-Equity Ratio: A gauge of a companys financial leverage obtained by dividing  the total liabilities  by  stockholders equity. It shows what proportion of equity and debt the company is presently using to finance their assets. Return On Capital Employed (ROCE) : ROCE compares earnings with the invested capital in the company. It is like Return on Assets (ROA), but also considers sources of financing Net profit margin: The profit margin says how much profit a company makes for every 1 Rupee it generates in revenue or sales. Profit margins vary with industry to industry, but all else being equal, the greater a companys profit margin compared to its competitors, the better. P/E: It is a gauge of the price paid for a share relative to the annual net income or the net profit earned by the firm per share. EPS: The portion of a companys profit which is allocated to each outstanding share of common stock.  Earnings per share  acts as an indicator of  a companys profitability. OPM: Operating margin is a measurement of the proportion of a companys revenue that is left over after variable costs of production such as wages, and raw materials have been paid. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt. Also known as operating profit margin and net profit margin. (3) Enterprise Value Enterprise value is a figure that, in theory, represents the entire cost of a company if someone were to acquire it. Enterprise value is a more accurate estimate of takeover cost than market capitalization because it takes includes a number of important factors such as preferred stock, debt, and cash reserves that are excluded from the latter metric. ANALYSIS OF DATA TATA GROUP OF COMPANIES One of the Indias largest business groups in the country. It has about 96 operating companies. Diverse business in 7 sectors. Revenues equivalent to 5.3% of Indias GDP. Group revenue FY 2008: Rs 251,543 Cr. / $ 62.5 b. Group profit FY 2008: Rs 21,578 Cr. / $ 5.4 b .Its 27 publicly listed companies have a combined market capitalization which is the 2nd highest among all business houses in India. Largest employer in private sector over 300,000 employees. A shareholder base of over 2.9 million. Operations in over 80 countries. Products and services exported to 85 countries Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251, 543 crore), of which 61 per cent is from business outside India. The group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. The business operations of the Tata group currently encompass seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The groups major companies are beginning to be counted globally. Considering two of the largest mergers of TATA Group -Tata Steel became the sixth largest steel maker in the world after it acquired Corus. -Tata Communications is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers. TATA STEEL-CORUS About the acquisition Date: 30th March 2007 Acquirer: Tata Steel Limited Target company: Corus Plc. Stake: 100 % Deal amount: US$ 12201 m Sector: Steel sector MERGER On January 31, 2007, India based Tata Steel Limited (Tata Steel) acquired the Anglo Dutch steel company, Corus Group Plc (Corus) for US$ 12.20 billion. The merged entity, Tata-Corus, employed 84,000 people across 45 countries in the world. It had the capacity to produce 27 million tons of steel per annum, making it the fifth largest steel producer in the world as of early 2007. Before the acquisition, the major market for Tata Steel was India. The Indian market accounted for sixty nine percent of the companys total sales. Almost half of Corus production of steel was sold in Europe (excluding UK). The UK consumed twenty nine percent of its production. After the acquisition, the European market (including UK) would consume 59 percent of the merged entitys total production. DEAL : An auction was initiated on January 31, 2007, and after nine rounds of bidding, TATA Steel could finally clinch the deal with its final bid 608 pence per share, almost 34% higher than the first bid of 455 pence per share of Corus. Synergies There were many likely synergies between Tata Steel, the lowest-cost producer of steel in the world, and Corus, a large player with a significant presence in value-added steel segment and a strong distribution network in Europe. Among the benefits to Tata Steel was the fact that it would be able to supply semi-finished steel to Corus for finishing at its plants, which were located closer to the high-value markets The Pitfalls Though the potential benefits of the Corus deal were widely appreciated, some analysts had doubts about the outcome and effects on Tata Steels performance. They pointed out that Corus EBITDA (earnings before interest, tax, depreciation and amortization) at 8 percent was much lower than that of Tata Steel which was at 30 percent in the financial year 2006-07 COMPANYS RETURN BEFORE AND AFTER ACQUISITION PRE-ACQUISITION POST-ACQUISITION FINDINGS As we can see from the line chart that the %cumulative abnormal return before acquisition was sharply decreasing since past month with not even a single glimpse of positive return on any single day. But as soon as the acquisition took place, the earnings showed a marginal rise and again got back to the level where it was just before the acquisition. This happened due to very large debt generated due to overpaying by acquiring the Corus at a very high price of 608 pence per share as compared to previously valued 455 pence per share. INTERPRETATION Debt equity ratio on post acquisition increase because Corus debt was high it was GBP1.6b to buy Corus and so its debt is almost 116% more than in pre acquisition. ROCE shows that post acquisition is very less as compared to pre acquisition it has negative percentage because company has short term returns after one year it will improve in the long run. Net profit margin has very less change as profit is not much affected. P/E increases in post acquisition by 30.2% which show high future cash flow. ROE is decreasing by 37.7 which show that it has more debt than equity. EPS has a very minor change. Operating profit margin is reduced by 9.1% which shows that it has low profit. TATA COMMUNICATION-NTT DOCOMO About the acquisition Date: 13th November 2008 Acquirer: Ntt-Docomo Target company: Tata Teleservices Ltd. Stake: 26 % Deal amount: US$ 2700 m Sector: Tele-communication MERGER Tata Teleservices has sold a stake of 26% to Japans NTT DoCoMo. The deal value is $2.7 bn. Tata Tele has 30 million CDMA subscribers and is rolling out its GSM services. Some say the deal is over-valued and some say its not easy to put value on the fastest growing mobile market in the world. India is the fastest growing market second only to China. It adds 10mn subscribers every month. The current subscriber base stands at 300+million and is expected to be 700 million in 2012. That is almost double to todays numbers. The Road ahead Great deal it may be, but it has its risks. One reason is that telecom deals have been controversial in recent times. This goes back to late last year when the government sold pan-India licenses for $333 million apiece, amid a welter of controversy. DoCoMo, in accordance with regulations of the Securities and Exchange Board of India, expects to make an open offer to acquire up to 20 per cent of outstanding equity shares of Tata Teleservices Maharashtra (TTML), a Tata telecommunication company, through a joint tender offer along with Tata Sons. TTSL and TTML through the Tata Indicom brand, have increased their combined share of the fast-growing Indian mobile market and their combined subscriber base now stands at over 30 million. TTSL expects to leverage DoCoMos expertise in the development and delivery of value-added services, where DoCoMo is a firmly established market leader. FINDINGS Debt equity ratio on post acquisition debt is increasing which shows company debt is increasing after merger. ROCE is constant it has not change much.Net profit margin increases by 11.10 as it income increases in post acquisition as compared to pre acquisition. P/E highly increases in post acquisition from 0 to 12%. ROE is decreasing by 1.53% which shows that it slightly more debt than equity. EPS is increasing drastically by 24.27% which is very profitable for investors. Operating profit margin is increased by 15.43% which shows that company profit margin is very fairly profitable. COMPANYS RETURN BEFORE AND AFTER ACQUISITION PRE-ACQUISITION POST-ACQUISITION INTERPRETATION The return of the target company Tata Communication has been very poor since the past 15 to 20 days before the acquisition but it almost got to break-even soon after the acquisition date. This sustained for the next 8 to 10 days but again got back into negative returns zone due to poor customer support to the newly entered Docomo brand in highly competitive communications market in India. TATA MOTOR JLR About the acquisition Date: 27th March 2008 Acquirer: Tata Motors Ltd Target company: Jaguar Land Rover Stake: 100 % Deal amount: US$ 2300m Sector: Automotive Detailed Case Study In June 2008, India-based Tata Motors Ltd. announced that it had completed the acquisition of the two iconic British brands Jaguar and Land Rover (JLR) from the US-based Ford Motors for US$ 2.3 billion. Tata Motors stood to gain on several fronts from the deal. One, the acquisition would help the company acquire a global footprint and enter the high-end premier segment of the global automobile market. After the acquisition, Tata Motors would own the worlds cheapest car the US$ 2,500 Nano, and luxury marquees like the Jaguar and Land Rover. Though there was initial skepticism over an Indian company owning the luxury brands, ownership was not considered a major issue at all. According to industry analysts, some of the issues that could trouble Tata Motors were economic slowdown in European and American markets, funding risks, currency risks etc. The Challenges Morgan Stanley reported that JLRs acquisition appeared negative for Tata Motors, as it had increased the earnings volatility, given the difficult economic conditions in the key markets of JLR including the US and Europe. Moreover, Tata Motors had to incur a huge capital expenditure as it planned to invest another US$ 1 billion in JLR. This was in addition to the US$ 2.3 billion it had spent on the acquisition. Tata Motors had also incurred huge capital expenditure on the development and launch of the small car Nano and on a joint venture with Fiat to manufacture some of the companys vehicles in India and Thailand. This, coupled with the downturn in the global automobile industry, was expected to impact the profitability of the company in the near future CURRENT SCENARIO In less than three years after its acquisition, Jaguar Land Rover has metamorphosed from a millstone around Tata Motors neck into its crowning jewel. In the June 2010 quarter, JLR division accounted for nearly 70% of the companys net profit and over 60% of its revenues on the consolidated basis. This was more than what the market has expected and the stock is up by nearly 150% in the past two trading sessions. JLR benefited from an improvement in its pricing power and a favourable exchange rate in the US dollar and the euro. The two worked in tandem and resulted in a sharp 60% jump in JLR revenue per unit to around  £38,000 in June 2010 quarter compared to the  £23,800 a year ago. With the raw material costs remaining benign, it led to a sharp improvement in the divisions operating margin and its reported net profit of  £221 million (`1,613.3 crore) in the first quarter as against a net loss of  £64 million (`467 crore) a year ago. FINDINGS Debt equity ratio is increasing by 42.27% as Tata took loan of banks to acquire JLR.ROCE increases vey high by 343.60% as compared to pre acquisition as it gauges that company that generate its earnings from the total pool of capital which indicates profitability.Net profit margin increases as it income increases in post acquisition as compared to pre acquisition. P/E highly decreases in post acquisition by 60.1% which in investor point of view they will be profitable to invest to get high earning. ROE is highly increasing by 480.15% which shows that it has more equity than debt. EPS is increasing drastically by 480.15% which is very profitable for investors. Operating profit margin is reduced by 41.44% which shows that company profit margin is very less. COMPANYS RETURN BEFORE AND AFTER ACQUISITION PRE-ACQUISITION POST-ACQUISITION INTERPRETATION As we can see from the line chart that the cumulative return before merger was negative and the entire trend is moving in the negative direction due to poor returns of tata motors. A soon as the acquisition took place, the highly profit generating Jaguar as well as Land Rover added to the profit and earnings of the tata motors. The brand value of JLR added to the highly reputable Tata Group and the companys balance sheet. This can be clearly seen in the line chart above. VALUATION AND INTERPRETATION EV Multiples of Tata Corus Tata Steel and Corus Group deal happened at high multiples compared to its peers. We can observe that the average multiples of the peer group company stands half compared to the deal multiples. Sales Multiple: The average sales multiple of its peers is 1.17x compared to the deal of 0.68x of Corus Groups sales. This can be possible due to high sales value, reducing the multiple to 0.68x. The lowest multiple (Steel Authority of India) is at 0.73x. EBITDA Multiple: EBITDA multiple of its peers averages at 4.38x compared to the deal multiple of 7.02x of Corus Groups sales. Even the highest multiple (Jindal Steel Power) is at 4.38x. This is almost half of the deal multiple. It can be observed that Tata played very aggressively. EBIT Multiple: EBIT multiple of its peers averaged at 5.54x compared to the deal of 10.19x of Corus Groups sales. Even the highest multiple (Jindal Steel Power) is at 8.39x. PE Multiple: The PE multiple of the deal is very high on the account that the margins of Corus are very low compared to Tata Steel and other peers. The average PE multiples is 7.95x compared to 68.23x at which the deal haapened. EV Multiples of Tata NTT Docomo The deal of Tata Teleservices and NTT Docomo happened at very high multiples. We can observe that the average multiples of the peer group company stands very low compared to the deal multiples. Sales Multiple: The average sales multiple of its peers is 5.37x compared to the deal of 26.98x (as on 31st March, 2008) of Tata Teleservicess sales. Even the highest multiple (Reliance Communication) is at 9.24x. Thus we can conclude that Tata Teleservices got very good price for its stake dilution for NTT Docmo. EBITDA Multiple: Again the average EBITDA multiple of its peers is very less, 16.35x compared to the deal of 99.81x (as on 31st March, 2008) of Tata Teleservicess sales. Even the highest multiple (Reliance Communication) is at 26.74x. This is a huge difference. NTT Docomo paid 6 times more what it should have paid to Tata. EBIT Multiple: EBIT multiple of its peers is 25.5x compared to the deal of 952.96x (as on 31st March, 2008) of Tata Teleservicess sales. Even the highest multiple (Reliance Communication) is at 41.02x. PE Multiple: The PE multiple for Tata Teleservices is negative as its net income is negative Note: The multiples are high on account that Sales and the profitability of Tata Teleservices is low, inturn giving very high multiples. Its sales stands at Rs. 1,815.5 Cr. compared to the average sales of Rs. 11,490.6 Cr. of its peers. FINDINGS FROM VALUATION OF ENTERPRISE VALUE MULTIPLE Tata Corus Tata Steel and Corus Group deal happened at high multiples compared to its peers. We can observe that the average multiples of the peer group company stands half compared to the deal multiples. Even the highest multiple (Jindal Steel Power) is at 4.38x. This is almost half of the deal multiple It can be observed that Tata played very aggressively as it paid high enterprise value as compared to our analysis. A reason for Corus to be sold is chance to Bail out of Debt and Financial stress. TATA Steel Paid 7.02 Times EBITDA of Corus Enterprise Value. The PE multiple of the deal is very high on the account that the margins of Corus are very low compared to Tata Steel and other peers the only company who has high P/E is Jindal steel. Tata NTT Docomo The deal of Tata Teleservices and NTT Docomo happened at very high multiples. We can observe that the average multiples of the peer group company stands very low compared to the deal multiples. The average sales multiple of its peers is 5.37x compared to the deal of 26.98x (as on 31st March, 2008) of Tata Teleservicess sales. Even the highest multiple (Reliance Communication) is at 9.24x. Thus we can conclude that Tata Teleservices got very good price for its stake dilution for NTT Docomo. The PE multiple for Tata Teleservices is negative as its net income is negative. EBITDA multiple of its peers is very less, 16.35x compared to the deal of 99.81x (as on 31st March, 2008) of Tata Teleservicess sales. Even the highest multiple (Reliance Communication) is at 26.74x. This is a huge difference. NTT Docomo paid 6 times more what it should have paid to Tata. The multiples are high on account that Sales and the profitability of Tata Teleservices is low, in turn giving very high multiples. Its sales stands at Rs. 1,815.5 Cr. compared to the average sales of Rs. 11,490.6 Cr. of its peers. SUMMARY Except Tata Steel- Corus deal, all the other 2 acquisitions was well accepted by not only well accepted by the owners of the company (the shareholders) but even made the entire Tata group come into the eyes of fortune 500 list. In-fact it ranked at 56th position at a global level in 2009 CONCLUSION This study was undertaken to test what is the impact of mergers on the financials of acquiring corporate by examining some pre- merger and post-merger financial, in terms of impact on operating performance. The results from the analysis of pre- and post-merger operating performance ratios for the acquiring firms in the sample showed that there was a differential impact of mergers, for different industry sectors in India. Type of industry does seem to make a difference to the post-merger operating performance of acquiring firms. Expansion through mergers and acquisition is one of the best ways for any domestic company to step outside the shores of India in an international market place and acquit itself as a global player Company can turn into conglomerate in reasonably less time by capitalizing on its strengths of efficiency and effectiveness by acquiring relatively poor performing companies as TATA did in almost all its group of companies Recent examples of companies which adopted similar pattern of expansion are Renuka Sugars, Arcelor Mittal, Reliance, Essar Group, Aditya Birla Group, etc. One can study any of the above mentioned company and conclude that the key underlying decision of these companies expanding quickly and efficiently is their timely decision of merging and acquiring appropriate companies

Essay --

The Role of Business in Society The purpose of this paper is to provide an overview of the role of business in society, concept of ethical leadership and the reasons leaders in businesses must utilize critical thinking, management decision-making, motivation and the requirement of followers in order to lead effectively. A business’ effect on a society is an important thing to consider, because a community can create an encouraging reputation, attract new customers and encourage customer loyalty to businesses. Every business is distinct in its own way whether it serves a specific functional market or relies on an owner's enthusiasm and special skills. However, all businesses have some of the same basic needs and limitations. Businesses are the growth medium of the economy. The primary role of business in the economy is to perform as a channel for economic development. The economy depends upon the employment provided by businesses and the goods and services in which they produce. In general, businesses pay taxes in which the government functions on these taxes collected. Therefore, businesses are an essential part of the economy. Businesses require people’s trust and acceptance. By doing so, businesses must serve people and not just the economy. The roles of social responsibility and technology in the marketing function means through social responsibility a business must be connected with the people and settings in which it serves. Being socially responsible means a business shows interest in its customers. Social responsibility and the evolution of technology have had a noteworthy influence on marketing. The technology growth has transformed businesses. In doing so, it has altered the stability of power from producers to con... ...ue-oriented relationships between businesses and the society that they serve. Marketing should be an exhilarating and worthwhile part of running a business. In order for businesses to get its full potential, leaders must spend time working on the business rather than working in the business. I feel that the connections should be entwined. Businesses should have a close relationship. An exemplary leader must create a culture that allows healthy relationships to thrive. Relationships form the basis of a network of trust among others. This trust fosters critical thinking, high expectations of everyone involved and a focus on improvement. Allowing stakeholders and the society to feel that they contribute to the achievement of organizational goals and participation in the decision making process to a degree provide desired commitment and trust to businesses.