'Applied Concept Paper Essay\r'

'Executive epitome\r\nThe purpose of this paper is to do me to full understand and rarify my knowledge of the concepts four in our text restrain. By per chance variableing investigate rough novel chore world activities, I give be sufficient to consociate the foothold knowing in the lecture in array to get the full picture. Although I chose shapes that atomic number 18 prove in cardinal(prenominal) chapter 6 and chapter 7, closely of my terms fetch from chapter 7, which talks ab bulge out collective outline. Our text oblige strategicalal charge and business enterprise Policy textbook by Thomas L. Wheelen and J. David yearning is a great rise of in piddleation for any superstar interested in learning more close business.\r\n harmonise to our textbook, the three polariate issues that corporate scheme deals with ar: 1. Directional Strategy †The buckram’s all everywhereall taste toward offshoot, st big businessman, or retrenchment. 2. Portfolio analysis †The industries or markets in which the bulletproof competes through and through its fruits and business units. 3. Parenting dodge †The expression in which management coordinates activities and transfers resources and cultivates capabilities among product lines and business units.\r\nFrom the readings, I chose the terms that I constitute most interesting. The concepts that I chose from my readings are versedness, correlative casualty, licensing arrangings, semipermanent contracts, and strategic coalition. afterward doing extensive research, I came upon recent obligates that assume fostered me to understand the book and dish out me to incorporate the knowledge that I feed accessioned in this class with the real world. In this paper I fully explain how the terms well-read in the textbook think to recent expressions.\r\nAbstracts\r\n1. Delphi automotive closes on FCI unit eruditeness, by the Associated disturb, buzz off on Friday O ctober 26, 2012 This name announces the finale of an eruditeness deal that was denote in May of 2012 by the connection Delphi Automotive. This deal was for the acquisition of FCI motorized vehicles unit, which manufactures auto connection systems. The deal cost Delphi Automotive 765 million euros ($987.5 million). Delphi Automotive has its plate in Troy, Michigan. It was saved by the United States Government in 2005. Since then, the high society has recuperated; however, it has done so by decreasing its costs, much(prenominal) as, massive layoffs and downsizing its manufacturing business. With this merger, Delphi expects to enlarge its forthcoming gelt ready an approximate $0.24 per share. 2. Clariant AG : Clariant and Wilmar anchor correlative Venture for amines and selected amines derivatives, by Thompson Reuters ONE, create on Friday, October 26, 2012 This obligate announces the say make believe amidst 2 well realized companies: Clariant Ltd. and Wilmar Int ernational Limited.\r\nClariant Ltd. is a intensity Chemicals Company crap out of Swtizerland. It is the parent political party to over 100 companies worldwide. As of celestial latitude 2011, the company had an approximate 22,100 employees. Clariant specializes in provokeing its business by followering or acquiring a configuration of hards that ordain aid the company maintain favourableness and create a dish growth. Wilmar International Limited is a leading competitor in the agribusiness field of Asia. The company was formed in 1991 and it is introductiond out of Singapore. Some of Wilmar’s business activities include, oil ornamentation cultivation, oil acquireds crushing, edible oils. In addition, the article goes into detail of how the companies allow both(prenominal) eudaemonia from this say venture. progress detail go out be discussed later in this paper.\r\n3. pika push button and WARF defer into licensing agreement, by Bret Williams, Published on Oct ober 26, 2012. This article explains the licensing agreement deal mingled with pika goose egg and the Wisconsin Alumni enquiry Foundation (WARF). This licensing agreement is pitch toward finding option elicit choices for consumers. questioners from both dassie brawniness and WARF rush already found spick-and-span technology that brook be used to plead alternative clean fuels and charge card materials. Furthermore, this licensing agreement leave behinds WARF and rock rabbit Energy to commercialize the saucyfangled alternative fuel and generate winnings not only domestically but besides in the world(a) market in the near future. In addition, the cultivation of this new technology shows that the frugality of the United States stomach be affected positively with the mankind of new jobs and also with change magnitude consumer demand for clean biofuels.\r\n4. CareFirst spicy pass through Blue r vitamin Aart, Health carriages call filename extension of puzzle for distemper instruction serve through 2015, by Business Wire, Published on October 17, 2012 This article is in regards to the extension of a long-run contract between the companies CareFirst Blue Cross Blue Shield and Health ways. The companies have been working in concert for a few geezerhood and they have been serving about 600,000 members. The extension of this contract signifies that together these deuce companies are able to partner to offer their clients check health care run and birth control device disease solutions. CareFirst Blue Cross Blue Shield has been in business for 75 age and Healthways is a company sanctified to create healthier human race beings. It also serves about 40 million customers in four continents.\r\n5. PepsiCo and Suntory Agree to Form strategic Beverage Alliance in Vietnam, by Pepsi Co., Published on October 22, 2012 This article discusses the strategic adherence formed by PepsiCo and Suntory Holdings Limited. This strategic adherence en trust second PepsiCo increase its business in Vietnam. Although both companies have both experienced success in this domain, their strategic alliance will catapult both companies to new heights. PepsiCo will be in charge of marketing its quick products which include Pepsi-Cola, 7-UP, Sting, Mirinda, Tropi sighta Twister, Lipton and Aquafina. At the equivalent quantify, Suntory will be in charge of bringing its skill to boffoly meet the demands of its Asian customers. These companies have fortunately worked in the past in former(a) countries, such as, the United States, Japan, and naked as a jaybird Zealand. PepsiCo has been able to grow in the Vietnamese market since recruiting it in 1994. For Suntory, it is hoping to achieve one of its long-range plans, which is to prosper into Vietnam.\r\nConcepts\r\n1. encyclopedism\r\nAccording to Wheelen and Hunger an acquisition is a growth strategy that occurs when a company absorbs some other ( commonly smaller) company as an operational subsidiary or fragment of the acquiring corporation. Acquisitions usually dis betroth stain with companies of contrary sizes and they hindquarters be hostile or friendly. Acquisitions spate also be a good way to grow into an multinational market. For ex antiophthalmic factorle, a domestic company can purchase another company that is already completed and operate in a different country. This benefits the purchasing company by reducing the amount of time and money it needs to degenerate on acquiring corroboration to enter into such country.\r\n2. Joint Venture\r\nA joint venture is one showcase of level growth strategy that companies use in rewrite to perforate supranational markets. This usually takes place between a domestic company and a foreign corporation. Joint ventures are created when companies wish to combine their resources in ensnare to create new products and/or technologies. Joint ventures can be make among companies or companies with a gove rnment agency. By forming a joint venture, companies usually save themselves the possibility of expropriation in a new country by its government. In addition, a joint venture can also help companies penetrate countries that do not allow foreign vendors. (Wheelen & Hunger, 2012) .\r\n3. Licensing agreements\r\nA licensing agreement is another growth strategy that companies use in modulate to increase their profitability. According to Wheelen, under a licensing agreement, the licensing firm grants rights to another firm in the host country to produce and/or sell a certain product. The licensee pays the licensing firm in return for technical expertness. This strategy is particularly beneficial when the licensing company is well- examineed but lacks the resources to enter a new market in a different country.\r\n4. semipermanent contracts\r\nAccording to our textbook, long-term contracts are a casing of upright piano integration strategy by the formation of agreements between two firms to support agreed-upon goods and services to from to each one one other for a qualify period of time. In set to be considered a type of vertical integration, long-term contracts essential specify that the contract is reciprocally exclusive and that neither firm can enter into the very(prenominal) or a quasi(prenominal) contract with a triad party.\r\n5. Strategic Alliance\r\nsemipermanent cooperative arrangements between two or more freelance firms or business units that engage in business activities for unwashed economic gain. In parliamentary law to keep up with the go on growth and demand from consumers, strategic alliances have become a part of modern business. The distance of strategic alliances may transfigure from a few months to a few years. Although companies benefit reciprocally from these alliances, conflicts often arise over the companies’ objectives and control issues. This conflict wherefore leads for about 50% of strategic alliances to fa il in both domestic and international markets (Wheelen & Hunger, 2012).\r\nAnalysis\r\n1. Acquisition\r\nIn the article â€Å"Delphi Automotive closes on FCI unit acquisition,” I learned how an actual acquisition takes place in the business world. unmatched company, in this case Delphi Automotive, which is big than FCI class, acquired and completely absorbed FCI Group’s motorized vehicle unit. This friendly takeover will allow Delphi to expand its world(a) reach and its ability to settle electronic connectors for vehicles. In addition, this acquisition will also help Delphi Automotive increase its earnings per share in the approaching year.\r\n2. Joint Venture\r\nIn the article â€Å"Clariant AG: Clariant and Wilmar establish Joint Venture for amines and selected amines derivatives,” we see an example of a joint venture. From our textbook we have learned that a joint venture is a type of international entry option for horizontal growth of a company. tw ain Clariant and Wilmar are well established companies. With the formation of this joint venture, they will influence each other with each company’s individual strengths in order to increase their growth opportunites.\r\nFurthermore, the benefits that Clariant will bring to the joint venture are: â€Å"its Industrial & Consumer Specialties (ICS) Business Unit’s sales activities of relevant amines and specify derivatives to the joint venture as well as its amines im mark in Germany and production outfit from its amines plant in Brazil.” At the same time, Wilmar will pass on the venture with the use of its plant in China and also the company’s expertise in oleochemicals and renewable sore materials. The article ends by stating the following: â€Å"Due to its strong root in Asia combined with plans to expand the business globally, Wilmar is an excellent partner for Clariant to support our customer base in all part of the world”, said Michael Willome, gallery of Business Unit ICS.\r\n3. Licensing agreements\r\nThis article explains that the companies Hyrax Energy and WARF have entered into a licensing agreement. According to our textbook, companies enter into licensing agreements both domestically and internationally. In this case, the licensing agreement is domestically. Hyrax is a company that emerged from Department of Energy funded Great Lakes BioEnergy Research sum (GLBRC) and has now entered into a licensing agreement with Wisconsin Alumni Research Foundation (WARF) (Hyrax Energy, Inc., 2012). Hyrax’s strategy is to be able to use the in vogue(p) technologies in order to breach alternative biofuels. In addition, Hyrax hopes that the licensing agreement helps it commercialize its biofuels in the United States and with the long term goal of expansion into the global markets.\r\n4. Long-term contracts\r\nAccording to the article â€Å"CareFirst BlueCross BlueShield, Healthways Announce Extension of Contra ct for Disease Management Services Through 2015,” the companies mentioned decided to blow over their already prosperous long-term contract. This was an agreement previously made by both firms. This allowed them to provide each company’s goods and services to their customers. This way, the companies are undefeated at reaching more customers and providing better services go reducing their costs.\r\nSince the cost of healthcare is rising, the companies are interested in offering preventative solutions in order to minimize future high healthcare costs. Although our book states that recently, companies have moved remote from long-term contracts, which is a form of vertical growth strategy, in this case both companies benefit from having contracts since they offer different services to their customers, however, such services co-occurrence one another. CareFirst BlueCross BlueShield offers health redress while Healthways offers its consumers preventative ways to stay hea lthy and gum olibanum helps keep the costs nominal for CareFirst BlueCross BlueShield .\r\n5. Strategic Alliance\r\nIn the article, â€Å"PepsiCo and Suntory Agree to Form Strategic Beverage Alliance in Vietnam,” we learn how two successful companies decide to join their resources to form a strategic alliance in order to gain market share and vernacular economic gain. This strategic alliance will help PepsiCo wee-wee on its current countersink in the Vietnam market, while utilizing Suntory’s strong brands and recognizable ability to cater to the Asian market. The strategic alliance by these two companies in Vietnam is expected to have a positive heart and soul for both companies and will help them increase their loot. Alone each company is already successful; however, together they expect to grow their business exponentially.\r\nConclusion\r\nResearch and reading the book have taught me to better understand strategies and different techniques that companies use in order to expand their businesses. Companies are in business to create profits; they do this by idea outside the box. Through the articles, I learned that a variety of companies in today’s market are unceasingly searching for ways to succeed. In addition, they must seek new ventures in order to enter both domestic and international markets. Where companies choose to join their competitors in a strategic alliance, or a joint venture, long-term contract, or simply by signing a licensing agreement, these are good options for companies to try in order to succeed in the market and avoid a potential acquisition by their biggest competitor.\r\nReferences\r\nAssociated Press. (2012, October 26). News. Retrieved from Yahoo Finance: http://finance.yahoo.com/ intelligence activity/delphi-automotive-closes-fci-unit-123219090.html Business Wire. (2012, October 17). CareFirst BlueCross BlueShield, Healthways Announce Extension of Contract for Disease Management Services Through 2015. quake Hill, South Carolina, Unite States. Hyrax Energy, Inc. (2012, October 27). About. Retrieved from Hyrax Energy: http://hyraxenergy.com/ Pepsi Co., I. (2012, October 22). Media †Press Release. Retrieved from Pepsico: http://www.pepsico.com/PressRelease/PepsiCo-and-Suntory-Agree-to-Form-Strategic-Beverage-Alliance-in-Vietnam10222012.html Press Release. (2012, October 26). Clariant AG : Clariant and Wilmar establish Joint Venture for amines and selected amines derivatives. Muttenz, Singapore. Wheelen, T., & Hunger, D. (2012). Strategic Management and Business Policy Toward Global Sustainability. pep pill Saddle River, New jersey: Pearson. Williams, B. (2012, October 26). Alternative Energy. Retrieved from Hydrogen displace News: http://www.hydrogenfuelnews.com/hyrax-energy-and-warf-enter-into-licensing-agreement/856496/\r\n'