Introduction In November 1997, the acquisition of APL by NOL was successful. As compared to the larger US based APL; NOL was a small Singapore firm. Through this acquisition, it appeared that NOL was ready to become an industry leader in the shipping industry. Thus this acquisition is a strategy through which NOL buys a controlling, 100 per cent, interest in APL with the intent of making the acquired firm a subsidiary business within its portfolio. Thus APL became a wholly owned subsidiary of Singapore based NOL, a global transportation and logistics company engaged in shipping and related businesses. Below is the study of the problems and strategies that NOL faced or is facing during the acquisition and integration of APL. Issues/Challenges facing NOL/APL 1) Agency Relationships There were separate management structures maintained in the group with the CEO of NOL in Singapore and CEO in the United States reporting to the group CEO. This separation between owners and manager creates an agency relationship. This exist when one or more persons (the principal or principals) hire another person or persons) as decision making specialist to perform a service. In the modern corporation, managers must understand the links between these relationship and the firms effectiveness. The agency relationship between managers and their employees is important as this is related directly to how the firm’s strategies are implemented. This separation between ownership and managerial control in this instance can be problematic as the principal and the agents have different interests and goals. In a large publicly traded corporation such as NOL/APL, shareholders (principals) lack direct control when the CEOs (agents) make decisions t... ... middle of paper ... ...el – with its focus on yield, value-added services, high asset utilization and cost management In Terminals, we are focused on boosting productivity and capacity in areas targeted by our Container Shipping business. Our Logistics unit is driving for synergistic growth, developing and securing its links to Container Shipping Core competency Best in the world at moving and managing containerized trade, providing a lifeline for the global economy. APL Resources Tangible Technological State of the art information technology Intangible Reputational 150 years of shipping tradition Capabilities Provide worldwide coverage across all the major trade lanes. Industry-leading schedule reliability Human Resources Excellent customer service Core competency Seamless global connectivity
The Great Lakes Global Freight Gateway (GLGFG) Project is an initiative that seeks to transform the Southeastern Michigan and Southwestern Ontario region into a multimodal transshipment hub. This hub will be where goods are moved through the Port of Halifax, loaded on the new Maersk Triple-E container ships, and shipped to worldwide markets. The Port of Halifax is currently the only deep-water port that can accommodate these post-panamax container ships. These Triple-E ships can move up to 18,000 containers and, due to the economies of scale, reduce the shipping cost per container; thereby reducing cost to manufactures (GLFGr4, pg. 4). Detroit is currently the best-situated city for repositioning its main economic engine to transcontinental shipping. The location on an international border and the system of rail lines and roadways in the region, are the assets that make this opportunity possible. That is the broad view of the project, but many people want to know a more narrow scope of the project. They want to know the local impact of the project. This essay will address the local angle by illustrating how the decline of the automobile industry has placed this region in a position for revival as a transshipment hub. Also, this essay will illustrate how economic activity from The Great Lakes Global Freight Gateway Project can regenerate local real estate markets.
1. What are the primary business risks associated with UST Inc.? What are the attributes of UST Inc.? Evaluate from the viewpoint of credit analyst or bond holder.
... everybody and me that companies merge to cut down costs and increase market share. However, it is very interesting and surprising on the direction which the American Airline decided to take. The focus on targeting corporate clients through widening their operation networks is something each manager or management student should take note of. The airline industry is very competitive and thus high cutting edge ideals are inevitably needed to survive the competition. This is what the new American Airline is exhibiting and I truly like the move.
Each party plays his parts – Role of key players like owners, Board of directors and staffs
Carnival Cruise Lines was the most popular and most profitable cruise line in the world. In regards of threat of new entrants, it is very difficult to enter in the cruise industry. The competition ne...
Our commitment to steady, long-term improvement in our products and processes is the cornerstone of our business strategy. To achieve this objective, we must work to continuously improve the overall quality of our design, manufacturing, administrative, and support organizations.
Worstall, T. (2013, March 01). Solving The Principal Agent Problem: Apple Insists That Executives Must Hold Company Stock. Retrieved from Forbes: http://www.forbes.com
Introductory, agency theory discusses the relationship in which one party, the principal, delegates work to another, the agent (Eisenhardt, 1989). The core idea behind agency theory is to through contracting align the interest of shareholders (principal) with that of the managers (agents) in order to maximize shareholders value. Thus, the decision-making is being separated from the party who bears the risk; therefore, problems can arise. Firstly, the principal cannot verify whether the agent has behaved appropriately (the agent and principal have partly di...
withstanding a large recession, and commanding high market share. In the last five years, the company’s
Nottingham Trent University. (2013). Lecture 1 - An Introduction to Corporate Governance. Available: https://now.ntu.ac.uk/d2l/le/content/248250/viewContent/1053845/View. Last accessed 16th Dec 2013.
Agency Theory or Principal Agent Theory is the relationship that involved the contractual link between the shareholders (the principals) that provide capital to the company and the management (agent) who runs the company. The principals will engage the agent to carry out some services on their behalf and would normally delegate some decision-making authority to the agents. However, as the number of shareholders and the complexity of operations grew, the agent, who had the expertise and essential knowledge to operate the business and company tend to increasingly gained effective control and put them in a position where they were prone to pursue their own interests instead of shareholder’s interest.
Jensen, M.C and Meckling, W.H (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, October, 1976, V. 3, No. 4, pp. 305-360. Available on: http://www.sfu.ca/~wainwrig/Econ400/jensen-meckling.pdf. [Accessed on 20th April 2014].
Most businesses navigate through several cycles. One of the cycles is success, a stage where businesses exploit their accomplishments by expanding to build further scale. Arguably, Ocean Basket is in this stage, as it prepares its business model for more international markets.
The relationship between employer and employees plays a pivotal role in the performance of the organization. Employers and employees have certain responsibilities towards each other which facilitate a fair and productive workplace. Positive work relationships create a cooperative climate with effort towards the same goals. Conflict, on the other hand, is likely to divert attention away from organizational performance.
One of the most influential and major steps towards keeping a strong freight transportation system has been the implementation of MAP-21 by President Obama in 2012. Within this large bill there were several significant freight provisions outlined. These provisions were aimed at the, “economic competitiveness and efficiency; congestion; productivity; safety, security, and resilience of freight movement; infrastructure condition; use of advanced technology; performance, innovation, competition, and accountability in the operation and maintenance of the network; and environmental impacts.” [1] The purposes of these provisions set forth are to improve the overall condition and the efficiency of the nation’s freight network. The significant freight provisions are basically large investments that have been made int...