Portfolio management history meaning steps involved. Merger and acquisition strategies how to create value. Strategy and tactics of international mergers and acquisitions 57 among them is the fact that such agreements should be based on sound strategies and rational tactical tools proven in practice and confirmed by successful results of postintegration activities. Today, the typical merger or acquisition is quite strategic and operational in nature. The complementarities featured in conglomerate mergers displaying portfolio effects extend beyond classic economic. Effective management of change during merger and acquisition. In this theory, consultant support management in shaping their own solutions. While the acquisition strategy of btb focuses on acquiring properties with toptier tenants with longterm leases, btb accesses the leasing community and retains appropriate brokers to replace and upgrade tenants. With a tendency to be more conservative, as they have a low tolerance for risk, but who may be interested in a more moderate approach one that integrates risk management. Managements extensive experience capitalizes on upside potential in individual properties. Deals where a company sells off a part of its business portfolio or a strategy were a.
With equal importance, we intend to appreciate the link or probably the gap between theory and practice around the concept of synergies. The data arising from the portfolio analysis are objective and can therefore be helpful in gaining from both management and customers support for proposed change. This paper will consider two organizations, one operating at the global level and have an account of mergers and. Course objectives investment analysis and portfolio management course objective is to help. Part 3 of the miniseries on mergers and acquisitions operational synergies mergers and acquisitions operational synergies perspectives on the winning approach. In this study, it could not be ascertained from the available data. Pdf mergers and acquisitions from the perspective of project. Equity portfolio management study session 11 exam focus dont be misled.
The portfolio management should focus on the objectives and constraints of an investor in first place. Pdf conflict management has become a key factor for mergers and acquisitions in. This topic is equity portfolio management and covers a wide range of issues, mostly nonmathematical. Business barometers the prevailing point of view is that its not the best of times and its not the worst of. Who want opportunities for growth but may be sensitive to loss. The authors show the contribution that psychology can make to our understanding of the merger phenomena how it affects organizational performance, and how it affects the managers and employees involved.
Create more value for all stakeholders, including shareholders. Merger, acquisition, and international strategies 2 merger, acquisition, and international strategies mergers and acquisitions involve the combining of different corporations with a key intention of ensuring that they all benefit within their distinct entity. Portfolio management strategies refer to the approaches that are applied for the efficient portfolio management in order to generate the highest possible returns at lowest possible risks. Project portfolio management practices for innovation a. It facilitates decision making, through evaluation, selection, prioritizing, balancing, execution of the work, harvesting of. Executives likely will want to conduct application portfolio management apm initiatives to support technology integration, and not just with an eye to surface costs. The primary step in the portfolio management process is to identify the limitations and objectives. A single system of record for ma naging a portfolio of strategies, projects, and resources, promises to further strengthen strategy execution by not. Companies should manage their portfolio in a way that allows them to become. Review the merged portfolio of customers and make tough calls about who. Portfolio management definitions portfolio an appropriate mix of or collection of investments held by an institution or a private individual.
This paper examines how companies can implement strategy through projects by using program management and project portfolio management. Programme and project manag level in the organisation what is a strategic portfolio. International journal of engineering business management, vol. In a corporate strategy context, a portfolio is the collection of businesses than an organization chooses to own or invest in. The reasons why portfolio realignment is becoming a business imperative. Assignment 4 merger, acquisition, and international strategies. A portfolio is a mix of securities selected from a vast universe of securities. Based on the corporate strategy, you derive the portfolio analysis to increa. Identifying transformational value opportunities and managing mergers that stretch a companys. Issues and implications name of the author find, read and cite all the research you. Merger acquisitionmerger is defined as combination of two or more acquisition in general sense is acquiring thecompanies into a single company where one survives ownership in the property. In doing so, it describes the limitations of project management and outlines the capabilities. Implementing strategy program and project portfolio.
Portfoliostep portfolio management framework overview. The power of portfolio management, a synthesis of successful organizational practices in portfolio management, done in collaboration with deloitte past pmi thought leadership series reports have focused on the. In a merger or acquisition, brands sometimes become one, but often remain. Terms in this set 25 firms use merger and acquisition strategies to do what. R 2008 merger, acquisitions and corporate restructuring response books, business books from. The course is intended for 32 academic hours 2 credit points. The professors share highlevel insights, and also engage us. Portfolio management the art and science of making decisions about investment mix and policy, matching investments to. Portfolio management z it is top management responsibility that requires the assessment of strengths and weaknesses of the current portfolio of businesses, in order to define the priorities for resource allocation among businesses, and the identification of opportunities for diversification and divestment. There are two basic approaches for portfolio management including active portfolio management strategy and passive portfolio. A glance at any business newspaper or business news web page will indicate that mergers and acquisitions are big business and are taking place all the time.
A strategic tool for restructuring in the indian telecom sector. Comparison of program and project management 15 table 2. Brochure mergers and acquisitions and corporate strategy. Investment strategies and portfolio management wharton.
Development of a project management methodology for. Diversification as a corporate strategy and its effect on. Investment analysis and portfolio management 5 the course assumes little prior applied knowledge in the area of finance. The objective of an investor may be income with minimum amount of risk, capital appreciation or for future provisions. All data quoted is proprietary mergermarket or deloitte data. Portfolio revision strategies in investment portfolio management. Delivering on strategy project management institute. Managing mergers acquisitions and strategic alliances. Pdf conflict management strategies in mergers and acquisitions. Candidates expect to see equity security valuation with lots of math and models, like level ii.
A risk management model for merger and acquisition article pdf available in international journal of engineering business management 32. Portfolio revision strategies in investment portfolio. Understanding how to design, deploy, and manage multiple brands as a diversified, yet cohesive portfolio of. Successful organisations make strategic choices about which activities should be implemented to deliver their decisions at this level can significantly impact the. Figure 16 well received culture and change management. The supervisor is accountable in connection with action taken on bank mergers be able to assess the newly formed bank in terms of ownership structure, directors and senior management, its operating plan and internal controls and its projected financial condition, including its capital base. Pdf on jan 1, 2008, ms swati and others published merger and acquisition strategies in banking industry. Portfolio management report pmi pulse of profession. Pdf a risk management model for merger and acquisition. Nine key strategies for merger and acquisition success. The building blocks of the course are portfolio theory and factor models, active firmlevel and portfoliolevel quantitative.
This approach allowed it to fill gaps in its portfolio and focus on developing the. Mergers and acquisitions edinburgh business school ix preface an understanding of mergers and acquisitions as a discipline is increasingly important in modern business. Risk managed strategies may work well for investors. There is a little math to know, but pay attention to all. Project portfolio management practices for innovation a case study at abn amro brazil. The art and science of making decisi ons about investmen t mix and policy, matching investments to objectives, asset allo cation for individuals and institutions, and balancing risk against performance.
A key and emerging imperative in brand management is brand portfolio management in scenarios involving mergers and acquisitions. Results of researches by the leading experts in the field provide certain contribution. Microsoft, intel, 3 m, merck, schwab has adopted this theory in many of the acquisitions. Takeovers and mergers are often promoted as methods of increasing. Amit singh sisodiya edited 2005 mergers and acquisitions strategies and insights the icfai university press, hyderabad. Two variables determine the composition of a portfolio. Philosophy behind mergers and acquisitions part of the overall concept of integration a merger capitalizes on mutual synergy of the strengths of the merging entities acquiring an existing company is better strategy than scaling up on its own it is also an. A descriptive framework is advanced which suggests that the performance of international mergers and acquisitions is a function of successful cultural combination during the postacquisition integration process. Now theres opportunity to harmonize it estates from a more holistic perspective. Mergers and acquisitions are a powerful way to modify a companys portfolio. Rarely, investors current money income exactly balances with their consumption desires.
Preparing to capture mergers and acquisitions operational. He has more than 27 years of consulting experience and provides a wide variety of strategic. Investopedia there has been a proliferation of new products and strategies in the asset management space in. The role of project and portfolio management systems in. Mergers and acquisitions edinburgh business school. Implementing strategy through projects often requires a process more complex and adaptable to change than the methodology used to manage individual projects. The merger and acquisition life cycle aided by real examples case studies will offer a vivid understanding of these concepts to the reader. The role of project and portfolio management systems in driving business and it strategy execution 3 ppm systems also manage resources as a core function. Bibliography books mergers and acquisitions strategies and. Navigating brand portfolio strategy and brand architecture. Mergers and acquisitions operational synergies perspectives on the.
Diversification as a corporate strategy and its effect on firm performance. For many companies contending with the challenge of a competitors merger, the following strategies may prove more effective than an. This requires a strategic relook at names of acquired brands and. Portfolio management delves deeper into this topic, focusing on how it affects organizational success and on establishing approaches to develop effective portfolio management. Portfolio diversification in capital markets is an accepted investment strategy. Portfoliostep portfolio management framework overview portfolio management is a business process that requires a set of detailed processes to be conducted in an interrelated continuous sequence. Longterm lending strategies are a little more difficult to pinpoint at this stage of the economic recovery. Btb reit acquisition and portfolio management strategy. For me, as a professional asset manager, whartons investment strategies and portfolio management is definitely a muchneeded refresh with a balanced risk and return perspective. Sometimes, investors may have more money than they want to spend. Mergers, acquisitions and strategic alliances is intended as a guide to successful organizational marriage. When to use portfolio analysis provides essential information to underpin recommendations for the development of the category strategy.
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