Sectionalism

Sectionalism Essay During the 1850's, slavery, a southern necessity both socially and economically, threatened the unity of our nation essay writer site. The tension's were high between the North and South, and further increased as more and more factors contributed to the strain in the Union. As an outcome of these factors, small and big, sectional hatred began to arise and commenced the splitting of the nation; ultimately leading to the American Civil War. The very first issue that caused sectionalism in the 1850's between the North and South was the Compromise of 1850.This compromise was a package of bills, passed in the United States in September 1850, regarding the status of territories acquired during the Mexican-American War. It was drafted by Whig Senator Henry Clay and was negotiated with Stephen Douglas in order to avoid secession or civil war in 1850. The Compromise of 1850 caused sectionalism in the Union because it first established California as a free state and turned d own the Southern proposal to split California at the 35 ° parallel; causing the South to be frustrated at the admittance of California.To balance out the annexation of California, the South was pleased to hear that the territories of New Mexico and Utah would have slavery decided with popular sovereignty, meaning that the people who settled there would decide whether or not the territory would be free or slave. Little did they know that they were being cheated, because the land in New Mexico and Utah was unsuited for agriculture and not fit for slave plantations.The biggest blow that caused sectionalism in the Compromise of 1850 was delivered when the Fugitive Slave Law became more strongly enforced. The Fugitive Slave Law basically declared that all runaway slaves must be returned to their masters and anyone who assisted the runaway slave would be arrested. It also gave commissioners ten dollars for every slave that was returned to its master and five dollars for every accused sl ave released, which led to greedy commissioners re-enslaving freed slaves.Lastly, the debate over slavery in the nation's capital was resolved during this compromise, it banned the trading of slaves in the capital but still allowed slavery to be practiced, which did not do much because people would just bring slaves in from neighboring states. The Compromise of 1850 was made in order to restrain the Union from splitting, but in it's attempt to please both the North and South, it caused them to develop more sectional hatred for one another. Another factor that caused sectionalism at the time came with the publishing of Uncle Tom's Cabin in 1852.This book was an anti-slavery novel by the author Harriet Beecher Stowe and was the bestselling novel of the 19th century. She was an abolitionist, which means she was against slavery, and she wrote the book so the North would understand how badly the South were treating their slaves. This book stood out among all the other anti-slavery books because it was the first to develop an emotional impact on the reader and personified the slave, not as a piece of property, but as a living human being.Her words galvanized the North to take action instead of remain undecided on their view of slavery and showed the people in the North, and even other neighboring countries how devastating slavery was in the South. The South saw this book as a direct attack on their practice of slavery and developed a burning hatred for the words of Stowe because she was said to exaggerate greatly on the practice of slavery, making it seem more brutal and savage then it really was.This book caused the Union to become further sectionalized and caused more hate between the North and South; to the point where Lincoln even referred to Stowe as â€Å"the little woman who wrote the book that made this great war. † Uncle Tom's Cabin did more than awaken the North; it influenced other nations to stay out of the Civil War because they were so moved by the book and were afraid it would stir up troubles in their own countries if they picked a side.The differing views about the institution of slavery contributed to the growing rift between the South and North and was another factor that caused sectional hatred in the 1850's. A huge factor that caused the chasm between the North and South to grow was one regarding the Kansas-Nebraska Act of 1854. This act was proposed by Steven Douglas and it split the Louisiana Purchase into two and created the territories of Kansas and Nebraska, opening them for settlement and letting them decide the issue of slavery through popular sovereignty.The decision to decide slavery in these territories through popular sovereignty rivaled the great Missouri Compromise of 1820 because both the territories were above the 36 °30†² parallel and yet they had a chance to become slave states if enough people voted for it. The act inflamed the slavery issue and led opponents to form the Republican Party, wh ich was supported by Abraham Lincoln and saw the expansion of slavery as a great evil.The Republican Party held all it's power in the North and caused many of the Northerners to rally to them on the grounds that the Kansas-Nebraska Act opposed the Missouri Compromise that kept those grounds sacred and untouched by slavery. This caused life in Kansas to be a mini civil war with Northerners and Southerners competing with one another for land and other resources, resulting in a lot of violence, which led to the coining of the term â€Å"Bleeding Kansas† because of the federal governments inability to contain the disorder.Douglas' plan to find middle ground between the free and slave states ended up driving the North and South farther apart because both slave and free advocates believed they rightfully had claims to the territory, the Northerners supporting the Missouri Compromise, and the Southerners supporting the new-found Kansas-Nebraska Act. The secretive Ostend Manifesto of 1854 played a small role in driving the nation apart. The manifesto contained rationale for the United States to buy Cuba from Spain and implied that the U.S. would declare war on Spain if it refused to sell Cuba to them peacefully. The annexation of Cuba was a huge goal for southern expansionists because they sought to bring in Cuba as a slave state and said that Cuba was vital to the Union's domestic interests. The document started a diplomatic firestorm, reinforcing foreign fears of aggressive American expansion and caused the Northerners who were now enlightened on the cruelty of slavery to become insubordinate to the South.This led to the coining of the term â€Å"slavocracy† which basically described the people who used their political power to corrupt slavery and spread it across the nation. Although this attempt to annex Cuba into the Union was a failure, it did represent the intentions of the South and cause the North to become agitated. This manifesto was one of th e small contributing factors to the separation of the North and South that would soon pile onto the ever growing heap of sectionalism in the Union. Another event that contributed to the sectionalism between the North and South was the famous Sumner Assault of 1856.On May of that year, the brilliant speaker, Charles Sumner made his speech that denounced â€Å"The Crime Against Kansas† along with other Southern leaders, such as Senator Butler. A fellow senator, Preston Brooks, took deep offense to the harsh word from Sumner's mouth and considered challenging the babbling madman to a duel, but then soon realized he must not stoop so low as to duel someone as scum-like as Sumner. So to solve his problem, on May 22, 1856 Preston Brooks strolls into the Senate Chamber and starts to beat Charles Sumner voraciously with his cane.This caused Brooks to gain much fame from his fellow Southerners and people even went so far as to send him personal cane's to replace his bloody broken one. The Northerners, on the other hand, were extremely outraged at this praising of Brooks and his violent acts and further supported their theory that the South were savages. In order to show support for their now injured speaker, Massachusetts reelected Sumner for another term and left his seat vacant as a reminder of southern brutality and cause the North to have more reasons to develop sectional hatred for the South.The Dred Scott Decision of 1857 was a landmark decision by the Supreme Court that caused the greatest division between the North and South. It stated that people of African descent brought into the United States and held as slaves were not protected by the Constitution and were not U. S. Citizens. Furthermore, Taney also included in this court case that the slave, Dred Scott was never free, regardless of where he lived, because slaves were personal property.This decision also went so far as to claim the Missouri Compromise of 1820 to be unconstitutional because the fede ral government had no right to prohibit slavery in the new territories. They also argued that the Constitution supported slavery because it did not outlaw or restrict it within the United States. Antislavery groups were appalled by this court decision and feared that slavery might spread unchecked and as a result, the Republican Party of 1854 fought to gain control of the Congress and the courts.The Dred Scott Decision was also a event that appealed to the people emotionally, much the Uncle Tom's Cabin, because people began to sympathize for slaves who were treated unfairly, such as Dred Scott. The court decision pleased the South because it allowed slavery to exist everywhere because the federal government has no legal power to take away property, and it upset the North because they saw it as a terrible decision that would allow slavery in their states. This caused the tension between the two to become even more strained and foreshadowed the terrible disunion that was to come.Anoth er written document that caused hostility between the North and South was the Lecompton Constitution of 1857. This constitution was one of the four proposed constitutions for the state of Kansas that were made in the three years since the Kansas-Nebraska Act. During this three year period, the North and South grew increasingly caught up in whether or not Kansas would join as a free or slave state. In the end, the pro-slavery forces won control of the constitutional convention in the town of Lecompton on a day in September.This only happened because the anti-slavery group in Kansas believed the voting was rigged and refused to vote for the constitution, causing the pro-slavery group in Kansas to win the vote and pass the contribution to the Congress. However, the Congress saw something wrong with the voting sensed that the voting was fraudulent and that popular sovereignty did not work effectively because of the North's refusal to vote. Seeing that the North had not had a chance to v ote, Douglas persuaded Congress to called for a new vote on the Lecompton Constitution, and on January 4, 1858 the new vote was swept over with anti-slavery Republicans.This solved the problem of Kansas' admittance to the Union but it caused other problems such as the splitting of the Democratic Party because of debate over â€Å"Bleeding Kansas† and it also lost Douglas many Southern votes in the upcoming election. This caused the nation to further become sectional due to the Lecompton Constitution ripping apart the only political party that had a mixture of Northerners and Southerners and causing the South to become angered at the rejection of their constitution. One of the last major events in the 1850's that caused intense sectional hatred between the North and South was the execution of John Brown in 1859.John Brown was a dedicated abolitionist that commanded forces multiple times in Kansas, making him a very stern and somewhat violent man. This proved to be true when Br own led a few of his troops to Pottawatomie to kill five pro-slavery supporters. The death of these pro-slavery men only sated his appetite for justice for a small while and in 1859, Brown sought to carry out a plan that Southerners have feared for every since slavery arose. Brown took his small group of men, and on October 16 of that year, he attempted to start an armed slave revolt by seizing a United States Arsenal at Harper’s Ferry.The attack was so crazy and so unexpected that Brown and his troops took the armory easily, but their problem arose when it came to galvanizing the slaves. With the slaves refusing to fight back, Robert E. Lee and his troops overwhelmed Brown's small number of men and forced them to surrender. The South, who were appalled by Brown's crazy attempt to defeat slavery, sentenced him to death by hanging. However, John already saw his fate and found what his purpose was. He believed that he was much more useful as a martyr that would give the aboliti onists someone to fight for. His perception of his death caused im to make beautiful speeches against the institution slavery, which gained him sentiment and established a personal bond with all the abolitionists in the North. John Brown's execution gave many Northerners a reason to hate the South because they had killed a man who was brave enough to stand up for the good of the nation. As a result, tensions increased to its maximum capacity and caused the Election of 1860 to be the straw the broke the camel's back. During the 1850's, there was an overwhelming amount of sectionalism in the United States because of the differences between the North and South.Many factors, small and big, contributed to sectional hatred between the North and South, which was terribly unhealthy for the prosperity of the nation. The buildup of tension came from a variety of things, from frivolous brawls in the Congress to the publishing of a book, and everything in between. All of these tiny disagreement s continued to add up, causing hatred to fester between the anti-slavery and pro-slavery groups which began the secession of the South, resulting in the start of the bloodiest war in U. S history, The American Civil War.

Becoming a Captain

The Cheerleading Captain plays a very important role on the team. The captain’s experience, attitude, and ability to effectively communicate information effects the team’s success. I believe that I would make a great captain because I possess all of these skills. I am an experienced cheerleader. I have been on the Varsity team for two years. You have taught me what it takes to be on a winning team. It takes hard work, perseverance, never quitting, and a lot of practice. This is invaluable experience for a captain. Also, I have had the privilege of serving as co-captain this past season.This has given me confidence in calling cheers and taught me how to get the whole team’s attention. I have represented Cheer in multiple news interviews. I did not feel very comfortable doing the interviews at first, but this experience has thought me how to represent our squad to the community. Lastly, my two years of cheer combined with four years of all-star competitive cheer ha s allowed me to acquire a solid stunting skill set. I am an excellent second base, and I know how to help other bases in a stunt group so that the flyer can have a stable transition.This knowledge and experience will allow me to teach others if needed. Should you select me as captain I will continue to work on my skills because a captain leads by example. A positive attitude is absolutely required from a captain. And, I have a positive attitude. I will confess there are mornings when I am tired or my body is sore but I show up at the gym on time and begin rolling out the mats, and never complain. This is important because if one person has a negative attitude about something it seems to spread like a virus.A positive leadership attitude is essential to correcting others and motiving those who are slacking. I feel comfortable calling a team member out and telling them what they do not want to hear (but need to hear) if that is what it takes to make our squad better. And, I am quick t o compliment and encourage teammates when I see them doing something good. I have a positive leadership attitude and others respect me because not only do I lead, but I also work just as hard to correct myself when needed. Effective communication skills are essential for a captain.I am organized and detailed which are two necessary characteristics for a good communicator. These are natural characteristics for me that would make it easy as a captain to communicate information to all my team members. Timely and correct information is vital when there are scheduling, uniform, and/or time changes, etc. You and I have a good relationship and communicate well with each other, this will allow us to easily work together. I am good at both text messaging and emailing. No team member would have the excuse of having the wrong information if I was captain.If you select me your Varsity Cheer Captain, I will never think or act like I am above your rules or any of the policies or procedures of â⠂¬â€Ã¢â‚¬â€Ã¢â‚¬â€œ High School. I will be a positive role model for the team. I will continue to work on my skills because a captain is not exempt from needing to improve as a competitor. I will demonstrate my experience, positive attitude and effective communication skills if chosen as caption. I am confident, loud, full of energy, and I will make you proud if you chose me.

Construction of a runway Essay

A runway is a defined as a paved or clear land or strip prepared for landing and take-off of a plane. Majority of the runways are built but some are natural surfaces. Reckless construction can lead to a number of losses, putting human lives at stake and even damage of property. The construction of a runway is important and steps and procedures should be followed to ensure successful construction. Some of the important steps include; the length of a runway and the marking and lightings. The length of a runway is manly affected by the types of plane that use the runway and the altitude. Larger aircrafts such as passenger planes require longer runways and smaller ones such as private jets can be accommodated by shorter runways. At a higher altitude these runways are designed to be longer due to the reduced density of air which decreases the engine power. If it’s a fully operational and international airport it would require a longer runway that would accommodate the number of planes that would be constantly streaming in and out. CITATION Jef l 1033 (Jeffrey Price) The markings and lightings of a runway are important since they enable operations at night or when there’s low visibility. The lighting systems such as strobe bars or light bars are installed at the far end of the runway or synchronized flashing lights installed at each side of the runway path. These would aid the pilot in landing and help him not to sway from the main landing path. CITATION Je f l 1033 (Jeffrey Price) After full consideration and implementation of some of these procedures, one can be able to successfully construct a functional, efficient and manageable runway Reference 1033 Jeffrey Price, Jeffrey Forrest. Practical Aviation Security: Predicting and Preventing Future Threats. n.d. www.bomag.com/†¦/construction-equipment-dictionary-airport-construct†¦ Source document

Microsoft and Apple Case Study Example | Topics and Well Written Essays - 1500 words

Microsoft and Apple - Case Study Example Microsoft's intelligent and rather unfair business strategies have helped in making it the biggest name in the business by dominating every new comer on the market but Apple is the only company to have fought back. This is because of its large quantity of unusually fond customers who will not shift to any other operating software no matter how hard they try, and Microsoft has tried, and is still trying. Being such huge companies one would assume that they would have strict rules of what to wear and strict Sop's (standard operating procedures) but no. Both companies are innovation based. The directors of both companies know that if you want an employee to be very creative and innovative then you have to let them feel relaxed while working and they follow in this path themselves. The culture of both companies is one where every software developer would dream of working. Microsoft in particular takes out a lot of time and effort to hand pick new software developers out of good universities and trains them to extreme levels while spending a lot of money in making them satisfied with their jobs so they can in turn give something as good back to the company. Apple is no different. It is full of highly innovative professionals who know their work so well that they have moved the company from only being a computer and software related company to a full electronics and accompanied Software Company. Microsoft's basic ideology is to provide every customer the taste of Microsoft's innovation and excellence by making them use their software. The company's main goal is to have the whole world running their operating software in all types of electronic machines. At Microsoft, honesty, integrity and constructive self improvement is highly praised. Apple's base ideological principles are a little different, though mostly the same. they do not plan world domination, but instead believe on slow and steady progress in first making a piece of cutting edge and incredible stylish hardware, then designing a flawless operating software for it which is so pleasing for the user and is so graphic intensive that customers will never want to switch to any alternate. Branching out into the whole electronic goods market and inventing good solid consumer electronic goods across a range of markets is what Apple does best. Business Change The flagship Microsoft products are the Microsoft windows and the Microsoft office productivity suites. The current edition of Microsoft windows is Windows Vista and office suite is the Microsoft Office 2007. Released in early 2007, windows vista has come under a lot of criticism simply because of one reason, it is not perceived as being better compared to its predecessor, Windows XP, which was launched in 2001. Microsoft is adamant that Vista's new kernel and code written from scratch is the very thing which makes it unique and better but the bottom line for most users is that it takes up too much space on the hard disk, is not more productive than XP and even though it is much better in security, an issue which was extremely lacking in XP, the price for it is too high and as Vista is designed for the latest machines with at least a 2.8GHZ Intel compatible processor, a good high end graphics card and at least 2GB of RAM, the cost of hardware alone for most organizations is too much before they even think of buying the top spec version dubbed windows Vista

Market research Paper Example | Topics and Well Written Essays - 2000 words - 1

Market - Research Paper Example The theorist implied that obtaining research from the entire population would be considerably expensive and injurious to a firm’s operations (Wiid and Diggines, 2009:56). His emphases were that a proper survey and random sampling of the population would present relevant data that would adequately provide information about the population. The following script argues out on the various concepts related to market research. Sampling is a crucial process of accruing relevant data from the target population. As a researcher, sampling denotes the best approach to a study with the provision of different sampling methods for research. The methods range from probability and non-probability sampling, stratified sampling, quota and area sampling, and cluster sampling. The following are the benefits of a good sampling method. Researchers engage on marketing research to identify the factors and solutions to a business problem. This process requires an effective and efficient approach as delays may pose negative impacts to a company’s production, processing, and delivering of satisfaction to the final consumer (Czinkota and Ronkainen, 2007:38). Therefore, time is a beneficial tool in relation to the issue of marketing research, and to the establishment of viable factors for business progression and success (Wiid and Diggines, 2009:57). As a marketing researcher, the appropriate sampling method should be time effective and precise on obtaining the amount of data required. The essence is that a sample method determines the longevity of obtaining data for use in forecasting different prospects of the business. Whenever a sampling method takes a long time, businesses may fail external forces that may threaten to halt operations. For instance, the global market is competitive and a time-consuming samplin g plan may draw the attention of rival competitors. Research is a necessary tool in amassing information relevant in establishing the long range

Automatic storage management for Oracle database 11g Research Paper

Automatic storage management for Oracle database 11g - Research Paper Example Despite the growing functionalities and capabilities of data management systems, traditional storage management systems could not help the organizations in leveraging their data management capabilities efficiently. Hence, the outcome emerged in the form of underutilization and overprovisioning. On the other hand, increasingly changing needs and requirements of organizations and data management systems are forcing the IT industry and researchers to discover effective techniques for data management and storage (Roussos, 2007; Joshi & Chalaka, 2006). However, the integration of autonomic features in data management system improves the performance of data management process by increasing effectiveness, speed, consistency and accurateness, eventually presenting fault free infrastructure for data management and storage. Without a doubt, these autonomic features are believed to be critical in Database Management Systems (DBMSs) for the reason that these autonomic systems take the approach o f what instead of how. Additionally, a wide variety of tool and applications can be employed by database management systems for the management of storage (Chaudhuri & Narasayya, 2001; Raza, Mateen, Hussain, & Awais, 2009). In this scenario, automatic storage management provides an excellent support for the rearrangement of dire groups to unaffected space of the disk (Raza, Mateen, Sher, Awais, & Hussain, 2010; Lightstone, Lohman, & Zilio, 2002). Oracle Data base 11g contains a wonderful feature known as Oracle Automatic Storage Management that follows the principle of combines stripe and mirror everywhere (SAME). In addition, Oracle Automatic Storage Management is responsible for managing groups of data storage in disk groups that can collect and store database files from a number of databases (Townsend, 2011; HP, 2008). This paper presents a detailed analysis of oracle automatic storage management for Oracle 11g. The basic purpose of this research is to present an analysis of autom atic storage management in the context of its working, its features and capabilities. This research will summarize the concepts discussed in other researches. Automatic Storage Management (ASM) for Oracle Database 11g In Oracle 11g, Automatic Storage Management (ASM) is designed to simplify the management of Oracle related files by facilitating the database administrators to reference disk groups instead of files and disks separately, which can be administrated through automatic storage management. Basically, the functionalities and capabilities offered by the automatic storage management are believed to be an extension of the OMF (Oracle Managed Files) features which further comprise mirroring and striping in order to provide secure and impartial storage management. In addition, a wide variety of templates are used to control the extent of the granularity and redundancy of the mirroring and striping. Though, Oracle provides a variety of default templates for each type of file store d by ASM, however extra templates can also be developed according to needs of the organizations. In addition, failure groups are also established in a disk group in order to accommodate the varying needs of the databases and required intensity of redundancy. If a database uses a two-way mirroring then it will require a disk group to establish and maintain two failure groups in order that individual files can be written and stored at two places (Oracle-Base2, 2013; Abraham, Bagal, Bauer, Belden, Bridge, & Chan, 2012). Additionally, the ASM

Dark child Essay Example | Topics and Well Written Essays - 500 words

Dark child - Essay Example Two of the major characters in the book are his parents. His father is the village goldsmith, whose spirit dwells in a snake; â€Å"No one was to kill him because he was my fathers guiding spirit!†(Laye 22). He is described as an â€Å"open handed, lavish giver† albeit â€Å"temperate†(Laye 20- 21). Laye portrays him as a great man, the man in whose footsteps he could have followed to attain a similar greatness, but for the fact that he opts for Western education instead. It is his father whom Laye turns to for guidance when he must choose whether or not to attend school in Conkary; â€Å"What must I do if I am to do the right thing?† (Laye 29). His father tells him â€Å"There is a certain form of behavior to observe, and certain ways of acting in order that the guiding spirit of our race may approach you also†¦..I fear, I very much fear little one that you are not enough in my company. You are all day at school.† (Laye 27). Laye’s ance stral heritage is replete with mysticism, charms and spirits, his father’s spirit is a snake, his mother’s a crocodile – each has an individual totem with which identification is complete. But young Laye is unable to find his own totem; â€Å"yes the world rolls on†¦.and the proof of it is that my own totem†¦.is still unknown to me.† (Laye 75). Laye’s grandmother is portrayed as the typical Universal grandmother, who loves him without question or reason, examining him every time he visits her and moaning about how thin he is. His mother is the strongest influence in his life – Laye shares a special relationship with her, awe struck by her supernatural powers. She is portrayed as a strong influence in the home; â€Å"everything was done according to her own rules and those rules were strict† (Laye 68). She was authoritarian, unlike other African women who played a more submissive role and Laye states; â€Å"It was due to the strange powers she possessed.† (Laye 69).

Democratic Leadership in Education Assignment Example | Topics and Well Written Essays - 2750 words

Democratic Leadership in Education - Assignment Example The finance department was considered by many as superfluous to the Agency, but the government was demanding more financial information, so the Agency was â€Å"forced to broaden their focus to make a bigger role for financial reporting.† Even without the Finance Branch, the Agency was able to function in a manner consistent with world-class standards both in its core business and in other areas of its business. In this case, the Agency felt that it would have done well without the finance department, but it is a subjective and therefore imbalance point of view. The imperative to form a new department enhances the function it discharges – in this case, financial reporting and management – according to the needs and strategies identified by the higher unit (i.e., the government). What the Agency considers its â€Å"world class† performance may only be in its view, which a balanced financial reporting system using accrual accounting should provide an imparti al view into. Issue Two: The existing system had to be upgraded, according to the senior financial officer, but it would result in a non-standard system. Furthermore, it was perceived as risky due to the fact that â€Å"so much money had already been spent on the existing system without providing a satisfactory system.† Establishing a new system would necessitate new substructures; for it to pertain only to the finance department would necessarily create a system not consistent with the rest of the Agency, but this should not deter the move where it is deemed necessary. As Alfred Chandler (1993) put it, a structure must support strategy, not impede or constrain it. Issue Three: The new Finance Director formed a small project team including Mark Black (MIS) and Henry Tell (senior financial officer) to determine requirements for the new financial management system. She also requested funding for the team. Consultants were not used for this assessment, but latitude and confidenc e were given to the existing staff and their technical background, with inputs drawn from key stakeholders through interviews. This appeared to be a wise move. In the development of new structures within an existing organization, it is important to build a sense of legitimacy and acceptance. Bringing in outside consultant who hardly knows the Agency would have been a mistake; although the resultant system might have been superior, if it were prejudged as unacceptable for being irrelevant, then the new unit may not get the chance to prove its system’s merits and the benefits it may provide the organization. The benefits of taking a structural perspective are that it focuses corporate activity to the specific goals it wishes to achieve, organizes and coordinates the efforts taken towards this effort, and therefore optimizes the firm’s resources. Resources should be organized to support vital functions, and organizational units seen as superfluous should be taken out (Lie vegoed, 1973). The usefulness of the structural frame, in this case, is to realign roles and responsibilities according to a new (accounting) environment, as well as to transmit facts and information.

Aristotle Essay Example | Topics and Well Written Essays - 500 words

Aristotle - Essay Example Aristotle argues that genuine understanding of a thing requires a grasp of why that thing is necessarily as it is. Such understanding is best facilitated by or represented in a demonstrative argument. We must proceed deductively from premises more absolutely intelligible than the conclusion to the conclusion by way of a causally explanatory middle term. The premises of demonstrations are themselves indemonstrable and serve as starting points or first principles (archai) within the given domain of inquiry. According to Aristotle, we arrive at these principles by direct derivation from experience, by what is sometimes called "intuitive induction" (epagoge), the results of which are grasped by a special intellectual capacity, nous. Let us follow Aristotle and say that every dialectical argument is either a syllogism or an epagoge (Topics I 12). By 'a dialectical argument' let us mean, as Aristotle does, any argument put forward in conversation, proceeding on premisses admitted by the other party, and not requiring any special knowledge. It follows that every Socratic elenchus is a dialectical argument.

Overview of the Environmental Security Debate Essay

Overview of the Environmental Security Debate - Essay Example The essay "Overview of the Environmental Security Debate" talks about the improving the wellbeing of the environment by including the notion of environmental security to national security policies. The weakening significance of superpower conflict in the past decade has provided an impetus to the emergence of flexibility in the notions of national security. Previously constructed to a set of external military dangers, the concept nowadays frequently emphasizes the importance of concerns such as environmental protection, economic progress, and global sustainability. Environmental security is labeled as a relevant subject matter in international affairs and it is being exploited to define the motives of countries under an array of contexts. For instance, the Kyoto agreement which curtails global greenhouse gasses has been disputed and defended on the basis of its influence on America’s national security. Warren Christopher, the former Secretary of State, proclaimed in his 1996 speech at Stanford University the resolution of the Clinton administration â€Å"to put environmental issues where they belong: in the mainstream of American foreign policy†. Subsequently, President Clinton has branded environmental security as one of the many concerns that America will be confronting in the contemporary times. The fundamental concept of environmental security signifies an attempt to put more emphasis on the issues of environmental degradation through openly fastening them to previous military notions of security.

Research papper about Landscape Artist J.M.W. Turner Essay

Research papper about Landscape Artist J.M.W. Turner - Essay Example John Constable, a contemporary of Turner’s, was of the opinion that â€Å"painting was another word for feeling†. A highly versatile and prolific artist, Turner created more than five hundred oil paintings and thousands of water colors, drawings and sketches, and numerous engravings over his long career of over sixty years. Turner developed quickly as an artist producing his earliest drawing in the 1780s. From the young age of fourteen he received training in art from the Royal Academy due to his enormous talent, and was made a full member by 1802. Turner’s penchant for serious reading of learned treatises on painting, literary and historical classics contributed to his vast range of mind (Rodner: 1-2). He won early and consistent patronage and popularity, though in later years some of his freely executed individualistic canvases met with controversy (Rodner:2). The Subject Matter of J.M.W. Turner’s Works: The artist covered an enormous range of subject matter, and was proficient in the use of both oils and watercolors. His paintings were extremely varied. Several works were on similar topics as a series of paintings on historical events, Biblical narrations, rural landscapes, industrialized towns, castles, rivers, marinescapes, rain, catastrophic storms and avalanches, Venetian land and waterscapes, sunsets and sunrises, sketches and engravings and many more. Turner’s versatility is seen in the many genres as well as schools of painting such as impressionism, post-impressionism, romanticism, etc. Turner’s life spanned one of the most innovative and influential phases of technological development. With industrialization came production and manufacturing, the expansion of cities, dramatic rise in population were great influences on his art. Turner’s watercolors of multistorey mills, fiery furnaces and polluted skies reflect the startling novelty of industrialism. The perfection of the steam boat, the introduction of the railroad, revolutionized

Federalists vs Democrats 18th Century Essay Example for Free

Federalists vs Democrats 18th Century Essay Throughout the 1790s the birth of American political parties emerged. Many of Americas founding fathers hated the idea of political parties because they represented political parties came about because of the difference in opinions among the population. The newborn constitution brought about issues such as north and south, rich and poor, and agriculture vs. industries that would revolutionize the way people in America thought, and their beliefs, thus giving birth to political parties. The political parties were divided as follows. There was Alexander Hamilton, a Federalist, and his followers who believed in a strong central government that would support their interests in commerce and industry. Amongst the Federalists supporters were some of the most influential men of the time, including: George Washington, Benjamin Franklin, James Madison, and John Jay. These men had great opposition to the constitution and wrote about them in their Federalist Papers and were read all across the nation. The Federalists wanted to solve the issues of the nation themselves. Thomas Jefferson was categorized as a Democratic-Republican. The Republicans believed in a decentralized agrarian republic in which federal government had limited powers. The two parties struggled against each other heavily in the beginning. After the ratification of Jays Treaty in 1794, providing a somewhat sugar-coated commercial relationship, awoke differing opinions between the Federalists and the Republicans. In one corner stood John Adams, federalist, supporting the ratification of Jays Treaty because it avoided war and continued trade. On the other side there was Jefferson, Democratic-Republican, who believed the treaty left doors open for the British to continue abuses of power such as impressment. For a long time, opposing political parties consumed what was the media of the era and created an opinion among the people. Although with its great efforts and philosophers, the Federalist party soon seized to exist, and for years the Democratic-Republicans regulated what is the United States.

Merger Acquisitions and Value Creation

Merger Acquisitions and Value Creation LITERATURE REVIEW Many firms used corporate mergers or acquisitions as business strategy to accomplish various objectives. For instance, businesses used acquisitions to enter into new markets and regions, allocate capital or gain technical expertise and knowledge. Therefore, organizations often utilize strategic mergers and acquisitions in order to grow or survive. However most of the poorly managed acquisitions or merger resulted in disappointing performance and up to 50 percent are considered unsuccessful (see Louis, 1982). Furthermore, according to Smith and Hershman (1997), it was held by Mercer Management Consulting that in 1980s, 57 percent of acquisitions were failed and the successful corporate acquisitions in 1990s were hardly 50 percent (p.39, cited in Smith and Hershman, 1997). To date, merger or acquisition is one of the most widely used instruments to enhance the growth of organizations. Systematic and sophisticated corporate research helps companies to understand the pre and post-acquisitions performance and achieving other business objectives (as discussed in Singh Zollo, 2000). However, according to Sirower (1997), empirical academic literature does not provide any clear understanding, which facilitates the managers to maximise the success of acquisitions or merger programs. Therefore, understanding the source of value creation is critical to determine the causes of failure or success in corporate merger or acquisitions. The literature review presented in this section critically evaluates and analyze the earlier studies in order to solve the paradigm of Merger Acquisitions and Value Creation. Corporate Acquisitions and Their Research Paradigms Datta et al. (1992) suggested two distinct frameworks for acquisitions programmes to identify sources of shareholders wealth i.e. strategic management and financial economics literature and both approaches follow different research directions. The strategic management approach focused on factors that have been controlled by management. For instance, Datta et al (1992) suggested that in order to assess the post-acquisition performance, this approach attempts to differentiate between various diversification strategies and types of acquisitions or types of payment in acquisitions (i.e. stock vs. cash). In contrast, financial economic research attempted to prove the unique hypothesis of market for corporate control. This approach views the acquisition activities as a contest among different management teams in a competition to control corporate firms as argued by Datta et al (1992). Therefore, this view suggests that the value creation through merger or acquisitions is decided by capital market and its characteristics including its competitiveness such as regulatory modification affecting a particular market (see Datta et al, 1992). However, these two methodologies are unable to explain the factors resulting in unsuccessful corporate acquisitions. Thus, many academics such as Chatterjee (1992), attempted to identify critical variables of ineffective performance in acquisitions or merger activities by studying the relationship between post-acquisition performance and integration. While the initial notion by Kitching (1967) that the key factor for a successful corporate acquisition is the post-acquisition integration process, it was recognised that acquisition or merger activities create value not only from strategic factors realised through synergies (see Chatterjee, 1992), but also from the process itself, which leads to anticipated synergistic factors, as reflect in capital market expectations (see Jemison and Sitkin, 1986). Therefore, it is very important to understand the processes and factors resulting in corporate merger and acquisitions value creation before we critically evaluate the research paradigm of value creation. Evolution of Acquisitions In order to improve the understanding of the research hypothesis, firstly this paper attempts to review trends of acquisitions and mergers followed by comments on value creation during these periods. For illustration purposes, I will focus my attention to the US economy considering the fact that corporate sector is enriched with these activities and capital markets of United States are much developed comparative to rest of the world. Following section presents the analysis of corporate mergers and acquisitions programmes dated back to1897. The First Wave, 1897-1904: According to Gaughan (1999), this particular period is dominated by horizontal acquisitions resulting surge in stock markets and ultimately creation of monopolies. Some of the todays giant conglomerates created in first wave include General Electric, American Tobacco, Du Pont, Kodak and Standard Oil (see Gaughan, 1999). First Merger Wave 1897 1904 Year Number of Mergers 1897 69 1898 303 1899 1208 1900 340 1901 423 1902 379 1903 142 1904 79 Table 3.1 First Merger Wave 1897 1904 Source: Gaughan (1999), p.24 Figure 3.1 First Merger Wave 1897 -1904 Data Source: Gaughan (1999), p.24 The Second Wave, 1916-1929: In contrast to first wave which is termed as merging for monopoly, the second wave is termed as merging for oligopoly. Gaughan (1999) pointed out that the reason of this terminology is the predominance of vertical or horizontal integration of companies during the period of 1925 to end of the decade. Moreover, Jemison and Stikin (1986) argued that the abundant capital availability stimulated by favourable economic conditions resulted in prominent corporate mergers and integration. Further according to Gaughan (1999), the antitrust law force during this era was stricter comparative to the first merger wave, which created more oligopolies and vertical integration and fewer monopolies in contrast to earlier wave. The Third Wave, 1965-1969: According to Gaughan (1986), the decade of 1960s observed controversial of the merger and acquisitions activities and termed as conglomerates. The companies such as ITT (International Telephone and Telegraph Corporation, USA) and Textron acquired numerous unrelated businesses to diversify and to reduce cyclic risks. Furthermore, during this period the conglomerates not only grew rapidly and profitably but the management were perceived to be skilful as well, which facilitated the diversity in acquisitions and operations of the companies (see Judelson, 1969). For instance, Geneen (1984) documented that during this wave ITT built itself into a highly diversified conglomerate by acquiring various businesses such as insurance, food and car rentals. Moreover, he found that executives of the company used the advanced financial tools like detailed budgeting and tight financial controls to make these acquisitions successful and well-functioning. Following figure presents the overview of the a ctivities during the period: Scholars like Goold and Luchs (1993) argued that general management skills were one of the vital factors in successful acquisitions and mergers during this era, which also helped corporations to diversify in different businesses. Moreover, engaging in unrelated business by many companies was based on the assumptions that different businesses would not require dissimilar managerial skills (see Goold and Luchs, 1993). However, in late 1960s companies start facing performance problems and the share price of these conglomerates such as Textron fell almost 50% comparative to 9% drop in Dow Jones Industrial average (see Bonge and Coleman, 1972). Furthermore, in early 1970s companies began to experience profitless growth like General Electric sales increased by 40% from 1965 to 1970 but its profit actually dropped (see Goold and Quinn, 1990). According to Gaughan (1999), the era has been ended when ITT spin off in three different companies. It is perceived that most of the mergers during the period failed and companies jettisoned their under-performing and unrelated business to face the competitive environment (see Sikora, 1995). In addition, Sadlter et al (1997) observed that the combined value of businesses separated from their parent firms significantly increased to more than $100 billion in 1996 comparative to 1993 figure of $17.5 billion. Acquisitions in the 1970s: The merger and acquisition activities decreased significantly in 1970s, which can be seen in the following figure. Figure 3.3 Merger Acquisitions in 1970 -1980 Source: Gaughan (1999), p.36 As a consequence of problem in merger and acquisitions activities experienced by conglomerates, the senior executives realised that only general management skills are not sufficient for a successful transactions (see Chandler, 1962). Therefore, they focused their attentions toward the long term companys objectives instead of operating of strategic business units (see Christensen, 1965). Andrews (1971) highlighted that this change introduced the concept of corporate strategy for firms and most CEOs of the organizations started accepting that strategy is their unique and primary task. However, corporate strategy poses some practical problem and did not help executives in deciding about allocation of resources among businesses especially when each investment proposal has a different strategy (see Goold and Luchs, 1993). Moreover, Bower (1970) argued that investment decision should be part of overall business strategy rather than prevaricate on project to project basis. In 1970s these revolutions in corporate finance lead to the development of portfolio planning by Boston Consulting Group (1970). Soon, portfolio planning became famous in corporate sectors and according to the survey of Haspeslagh (1982) by 1979, 45 percent of the Fortune 500 companies were using portfolio planning in some form. However, with the passage of time problems related to portfolio planning emerged. As Goolds and Luchs (1993), argued that the corporate manager with long experience of particular sector of the industry found extremely difficult to manage their newly acquired businesses in vibrant and unfamiliar sectors. Consequently, this affected the performance of new acquisitions or mergers of the firms. In search of solution to this problem Hamermesh and White (1984) found that administration was a vital factor in explain business performance of mergers or acquisitions but many organizations incorrectly addressed the approach. The Fourth Wave, 1981-1989: The decade of 1980s seen another merger wave in business world. In this period, merger deals were frequent and larger and total value of mergers were approximately $.13 trillion in US (see Sikora, 1995). This was influenced by service sector and significant support from investors; lenders and globalization facilitated companies to finance the buyout deals (see Sikora, 1995). Moreover, the reasons of the fourth merger wave were excess capacity (see Jensen, 1993), agency problems (see Jensen, 1988), market failure (see Shleifer Vishny, 1997), and tax and antitrust law changes (see Bhagat et al, 1990). It seems that during 80s, diversified firms do not have capacity to create values therefore companies start re-thinking about role of corporate management as well as appropriate strategies for diversified firms. As highlighted by Goold and Luchs (1993) highlighted that in order to survive firms cut back costs and scale down their staffs but these were not adequate to create value. Furthermore, they argued that diversification strategies failed to create value for many businesses. Nevertheless, these failures compelled senior managers to transform their primary goals to creating shareholders values instead of building huge businesses (see Porter, 1987). Moreover, management of the companies started evaluating corporate performance like stock market by using economic indicator instead of accounting measures and take whatever steps were essential to enhance the value of their firms stock (see Goold and Luchs, 1993). However, value based planning based on financial tools of Return on Equity (ROE), internal rate of return and discounted cash flow provided different views to managers about competitive advantages and stock prices (see Rappaport, 1986). Further, Goold and Luchs (1993) pointed out that a higher stock price could be a reward for creating value. However, during the era of 80s firms that did not diversify into unrelated businesses and specialize into their core industry were able to create value and turn out to be successful companies (see Peter and Waterman 1982). Mintzberg and Lampel (1999) also support this notion by arguing that focused corporations which know their customers, have deep knowledge and understand their missions were better able to create value in contrast to companies that applied the diversification concept of value creation. In summary of the merger and acquisitions activities in 1960s and 1980s, it can be assert that conglomeration and diversification were the dominant trends in 1960s contrast to specialization and consolidations phenomena of 1980s. However, empirical evidence on value creation tends to suggest that significant merger and acquisitions of 60s reversed subsequently and did not lead to profitability. According to Shleifer and Vishny (1994) many of the conglomerates created in 1960s were destroyed in 1980s, which provides the evidence of failure in notion of merger acquisitions and value creation that was not expected in 1960s. The Current Wave, 1990-Present: According to Gaughan (1999), in contrast to 1960s decade of conglomerates and 1980s period of Leveraged Buyouts (LBO), the dominant deals of 90s were designed with a view to fit strategically among merging firms. Moreover, the forces behind the merger and acquisitions activities were different than earlier periods and corporate sector seen some of mega-deals during that period. For instance in 1996, the top 100 deals of merger and acquisitions were worth more than $1 billion or approximately 53.5% of total transactions (see Sikora, 1997). Merger Acquisitions in 1990s Year Number of Deals Value ($ Billions) 1980 1558 34.8 1981 2328 69.5 1982 2299 60.7 1983 2395 52.7 1984 3176 126.1 1985 3490 146.1 1986 2523 220.8 1987 2517 196.5 1988 3011 291.3 1989 3825 325.1 1990 4312 206.8 1991 3580 143.1 1992 3752 125.3 1993 4148 177.3 1994 4962 276.5 1995 6209 375.0 1996 6828 550.7 Table 3.2 Merger and Acquisitions in 1990s Data Source: (www.mergerstat.com) The era of 90s was said to the decade of Consolidation; which means combination of operating and management resources between two companies as well as their stocks, assets and liabilities (see Lipin, 1997). Furthermore, in 1990s, stable economic environment, relax antitrust laws, stock markets favourable conditions and low cost of capital were the catalyst of merger and acquisition trends. However, still many firms failed to create shareholder value and according to study by Mercer Management Consulting Inc. (1997) 48 percent of mergers failed to generate shareholder value in 90s comparative to 57 percent failure of 1980s (p.39, cited in Smith and Hershman, 1997). Nonetheless, the firms in 90s believed that larger pools of assets are essential either to survive or to grow but the question remains that how to discover ways to create value for portfolio of firms businesses? (see Goold and Luchas, 1993). To resolve this anomaly, three possible explanations have been identified: Firstly, as shown by Porter (1985) that diversification should be limited to companies which have synergy potential and without synergy a diversified business is nothing more than mutual fund. He also suggested that synergies can be attained when the portfolio of businesses create values more than sum of its individual components. Besides, the notion of synergy should be based on economies of scale and cost saving strategies (see Porter, 1985). However, in practice it has been found by studies such as Chatterjee (1992) that gaining synergy is not an easy task and most acquisitions and merger gains arise from either disposals of assets or from restructuring rather than synergistic benefits. It seems that synergy was a primary rationale for merger and acquisitions in the era but remains anomaly from value creation prospective as discussed by Goold and Luchs (1993). Secondly, the corporate strategy of the firms should focus on exploiting core competencies. For instance, Prahalad and Hamel (1989) suggested that the corporate portfolio should be based on technological competencies instead of portfolio of businesses. Similarly, Itami (1989) argued that invisible assets like reputation, brand names or customers list are the most valuable source for sustaining competitive advantage and could be used to create value by exploiting competitive opportunities. Furthermore, other competencies such as technology or managerial expertise can also be used to enhance the performance of business portfolio (see Haspeslagh and Jemison, 1991). However, this approach also has some drawbacks; for example, Goold and Luchs, pointed out that it can be difficult to assess the contribution of investment in building the competencies of a business especially when the investment is in new business area. Thirdly, the best way to create value via successful diversification is to build a portfolio of businesses, which fits with the managers logic and their management style (see Parahalad and Bettis, 1986). If conglomerates diversification is based on business with similar strategic logic then its possible to add value to business by adopting a common approach across all the business units. For instance Goold and Luchs (1993) exposed that sharing the skills or activities across organization can help corporate management to realize synergies. Moreover, Goold and Campbell (1987) found the evidence that top executives also find it difficult to deal with a wide range of styles and approaches. Review of Major Areas in MA This section presents the literature review of major areas focused by academics in merger and acquisition field. Consequently following five sub-sections have been established to review the academic literature: Performance Success in Merger and Acquisitions People in Merger and Acquisitions International Prospects of Merger and Acquisitions Best Practices in Merger and Acquisitions Valuation Issues in Merger and Acquisitions The measurement of success in merger and acquisition activities is mainly through quantitative research and is subject to various studies such as Gosh (2001); Healy et al (1992), in the field of finance or economics and also other directly related fields. People are normally unobserved in merger and acquisitions, however extensive studies like Bliss and Rosen (2001), addressed issues from ethical and organizational learning to more in depth personal perspective. Similarly, increasing trend of international trade and globalization attracted the attention of many researchers, for instance Rossi and Volpin (2004). The valuation of the companies is often overlooking in the field of merger and acquisitions. However, it is a very critical part of acquisition process and could be very helpful not only in the pre-acquisition stage but also during the acquisition process as well as at post-acquisition stage (see Becher, 2001). Finally, the best practices research in the field of merger and acquisition is usually done in the form of case studies but the quality and intensity of these studies vary widely (see Marks and Mirvis, 2001). Performance and Success in MA As stated before companies often engaged in the series of acquisitions and merger activities and early studies such as Barney (1988), tend to show that related acquisitions performed better than other acquisition transactions. However, relatedness itself does not create value for acquiring companies but synergy is the vital factor that helps companies to generate abnormal returns from acquisition programs. For example, Barney (1988) showed that synergistic cash flow stemming from relatedness, which is unique and private creates abnormal returns for shareholders of acquiring firm. However, later studies such as Hayward (2002), suggested that different level of relatedness results in various degree of success and moderately similar companies tend to be more successful than the companies that are highly similar or dissimilar in business or size to one another. He further concluded that if a firm experienced small losses in past acquisition in contrast to high losses or high gains then it has better chances of success in prospective acquisition. In addition, the timing of acquisition plays a vital role in success of the transaction and should not be too close or far-away from central acquisition (see Hayward, 2002). Similarly, Brown and Eisenhard (1997) argued that companies benefit differently depending upon their experimenting and timing of the merger and acquisition activities. Moreover, when the acquiring company has some inimitable resources then it can create value by utilizing these resources in targets company as suggested by Capron and Pistre (2000). However, they also added that if the source of synergies is recognized in target firm than market associate expected gains to target firm due to the competition among potential bidders. Consequently, this competition raises the price of target firm and would create value for shareholders of the target firm but also lead to under performance of acquirer. Nevertheless, performance success through merger and acquisitions is still controversial among academics as pointed out by Cording et al (2002). To resolve the issue Chatterjee (1992) measured the cumulative average of abnormal returns (CAAR) during the period of 11 months before the tender offer until 60 months after the tender offer. After studying the sample of 577 tender offers between the periods of 1963 to 1986; he suggested that net gain arises for the economy from these transactions but it does not necessarily create gains for everyone involved in merger and acquisition. More specifically, CAAR after 60 months were observed to be negative for unsuccessful bidders, zero for successful bidder and positive for target company. Furthermore, Chatterjee (1992) found much higher positive CAAR for restructured target companies in contrast to non-restructured targets. Certain studies view the merger and acquisition transactions from a different prospective. For example, Golbe and White (1993) proved in their study that macroeconomic environments influence the merger activities and the number of merger transactions increases in time of economic expansion comparative to decrease in programme at the time of economic down turn.Similarly, Amburgey and Miner (1992) studied the effects of companies momentum on merger activities and suggested that managers follow the past patterns. The academics such as Capron (1999), also attempted to assess the performance of the merger and acquisition activities by conducting the survey of prime stakeholders in merger activities. He further concluded that the available financial data is too gross to allow the separation between the types of pure value-creating mechanism. Moreover, he also argued that more often the objective of the companies is to retain the top management team of the targets firm, whether its a conglomerate or related merger. International Prospects of MA The emergence of globalisation and increasing trends in international trade fasten the number of local as well as cross-border acquisitions and merger activities. For instance, the cross-border acquisition activities in United States increased to 19% in 1999 from 6% in 1985 (see Seth et al, 2001). According to the study of Seth et al (2001), the evidence suggests that there are three motives for cross-border acquisitions such as synergy seeking, managerilism and managerial hubris. Moreover, the research tends to show that there is a positive relationship between the level of value creation and reverse internalization, asset sharing, financial sharing and market seeking ( as discussed by Seth et al, 2001). In addition, there seems to be association between value creation and governance system of bidders country. For instance, Seth et al (2001) argued that bidding companies from group-oriented governance system like Japan and Germany appear to be engaged in acquisitions and merger activities with higher level of value creation in contrast to bidding firms from market oriented governance system such as United Kingdom. Further enhancement of research in the area of cross-border merger and acquisition suggests that experience in merger and acquisition activities can be utilized to create value in another country. For example, Gugler et al (2003) compared the data of 15 years and proved that post merger patterns are similar across different countries. Moreover, their evidence also signifies that there are no major differences between domestic and cross-border mergers as well as manufacturing and service sectors around the world. With the passage of time and in the era of globalization the merger and acquisitions activities are increasing especially in emerging economies. The multinational companies often use the tools of acquisition and mergers to penetrate in new markets and economies particularly in emerging countries such as Central and Eastern Europe (see Milman, 1999). However, in many countries MNC mergers and acquisitions are seen as threats by government agencies, privatized companies and state enterprises. Therefore, in order to develop a successful alliance the acquisition or merger program should be designed in such as way that creates value for companies as well as the host-country governments (see Rondinelli and Black, 2000). Lastly, yet the number of merger and acquisitions across border appears to be increasing but it seems difficult to integrate and manage the successful processes. Hence, Inkpen et al (2000) suggested that the companies should critically evaluate the areas of decision making, communication, networking and socialisation, communication and the structure of authority and responsibility before involving in the process of MA. People in MA Only looking to financial aspects might limit the understanding about the question why MA activities are so widely used by companies as a tool to grow. Hence, another area focused by academics, such as Karitzki and Brink (2003), is related to merger and acquisitions and people. Generally, one of the motives for merger activities is to follow the cost-cutting strategies including synergy and targets customers. Often, the employees are laid off in the process of merger and acquisitions and consequently this creates new but conflicting networks of relationships in new companies as suggested by Vermeulen and Barkema (2001). Thus, it affects the success and results in under-performance of merger and acquisition programmes. Therefore, considering the affects of MA on employee or managers of the potential target firms are of similar importance as financial issues. Similarly, the research in the area of executive compensation pointed out that prior to acquisition or merger, management of acquiring company receive significant higher packages comparative to the executives of target firms (see Lynch and Perry, 2002). Hence, these issues can lead to turnover and morale issues that ultimately affect the success of anticipated integration from MA. Furthermore, in extreme circumstances, issues like these emerging from dissimilarities create hurdles to achieve the objective of the original merger and acquisitions. Thus, reconciling the differences is one of the major issues faced by the combined company to create value (as discussed in Lynch and Perry, 2002). Moreover, successful merger or acquisition depends upon the people in both target and acquiring firms. The attitude and opinion of the employees regarding acquisition or merger can change over the time. Schweiger and DeNisi (1991) conducted the survey of employees and compared the attitudes in pre-acquisition and post-acquisition period. Their results show that attitudes of the employees three months after the announcement of merger changed significantly and turn towards continual negative consequences (see Schweiger and DeNisi, 1991). Likewise, Covin et al (1996) studied the attitude of 2845 employees from a large manufacturing concern in post merger period. The results show significant differences between the target firm and acquiring companys employees in satisfaction with merger. The employees of acquired company faced high level of dissatisfaction and ultimately felt more stress due to changes introduced after merger. In addition, this stress is aggravated due to the direct competition between target firm and acquiring company. Furthermore, Covin et al (1996) pointed out that factors such as loss of power and status, changes in salary or benefits and lack of managerial direction result in high level of stress and dissatisfaction from merger activities. Hence, it has been suggested that in addition to financial aspects these types of issues should not be overlooked in order to create value and to develop a successful merger and acquisition programme (see Karitzki and Brink, 2003). Best Practices in MA It is often suggested that acquisitions are predominantly unsuccessful and numerous studies like Aiello and Watkins (2000), confirmed this fact. However, generally the conditions and environment is relevant before judging the results. Furthermore, there is lack of research in answering the question; what would happen if both the companies continued in their own separate way. Therefore, estimating the successfulness of merger or acquisition is a tricky anomaly (as discussed in Chaudhuri and Tabrizi, 1999). Moreover, the unsuccessful MA activities are more highlighted in contrast to successful programmes. Ed Libby, the chairman and CEO of AllState stated that when MAs fails they draw more notice despite the fact that lot of other projects fails in business but no one can see them because they remain within internal walls of the companies (cited in Cary, 2000). As stated earlier, there is no one strategy that fits all kinds of merger and acquisition activities, however systematic approaches such as suggested by Jan Leschly, can help companies to develop a successful plan. Jan Leschly, retired CEO of SmithKline Beecham suggested that they put their people on the boards of different companies by investing small amounts. Once the companies get going then they decide whether to buy it completely or not (cited in Cary, 2000). Likewise, understanding the various components of merger process is very vital to develop a successful merger or acquisition deal. However, it is very hard to enumerate the components especially when these are integrated with each other. According to Marks and Mirvis (2001), the successfulness of merger and acquisition is highly depended on following factors: Acquisition Plan Implementation of this plan Post-acquisition cooperation between firms after acquisition Moreover, they collected a number of factors that were mentioned in previous research such as strategic objective, clear selection, search and selection process etc. They also argued that pre-acquisition planning is very important for successful merger and acquisition plan and more prepared the people will more synergies in a combination will result (see Marks and Mirvis, 2001). Similarly, Aiello and Watkins (2000) suggested that every MA deal pass through following five stages: Screening potential deal Reaching initial agreement Condu Merger Acquisitions and Value Creation Merger Acquisitions and Value Creation LITERATURE REVIEW Many firms used corporate mergers or acquisitions as business strategy to accomplish various objectives. For instance, businesses used acquisitions to enter into new markets and regions, allocate capital or gain technical expertise and knowledge. Therefore, organizations often utilize strategic mergers and acquisitions in order to grow or survive. However most of the poorly managed acquisitions or merger resulted in disappointing performance and up to 50 percent are considered unsuccessful (see Louis, 1982). Furthermore, according to Smith and Hershman (1997), it was held by Mercer Management Consulting that in 1980s, 57 percent of acquisitions were failed and the successful corporate acquisitions in 1990s were hardly 50 percent (p.39, cited in Smith and Hershman, 1997). To date, merger or acquisition is one of the most widely used instruments to enhance the growth of organizations. Systematic and sophisticated corporate research helps companies to understand the pre and post-acquisitions performance and achieving other business objectives (as discussed in Singh Zollo, 2000). However, according to Sirower (1997), empirical academic literature does not provide any clear understanding, which facilitates the managers to maximise the success of acquisitions or merger programs. Therefore, understanding the source of value creation is critical to determine the causes of failure or success in corporate merger or acquisitions. The literature review presented in this section critically evaluates and analyze the earlier studies in order to solve the paradigm of Merger Acquisitions and Value Creation. Corporate Acquisitions and Their Research Paradigms Datta et al. (1992) suggested two distinct frameworks for acquisitions programmes to identify sources of shareholders wealth i.e. strategic management and financial economics literature and both approaches follow different research directions. The strategic management approach focused on factors that have been controlled by management. For instance, Datta et al (1992) suggested that in order to assess the post-acquisition performance, this approach attempts to differentiate between various diversification strategies and types of acquisitions or types of payment in acquisitions (i.e. stock vs. cash). In contrast, financial economic research attempted to prove the unique hypothesis of market for corporate control. This approach views the acquisition activities as a contest among different management teams in a competition to control corporate firms as argued by Datta et al (1992). Therefore, this view suggests that the value creation through merger or acquisitions is decided by capital market and its characteristics including its competitiveness such as regulatory modification affecting a particular market (see Datta et al, 1992). However, these two methodologies are unable to explain the factors resulting in unsuccessful corporate acquisitions. Thus, many academics such as Chatterjee (1992), attempted to identify critical variables of ineffective performance in acquisitions or merger activities by studying the relationship between post-acquisition performance and integration. While the initial notion by Kitching (1967) that the key factor for a successful corporate acquisition is the post-acquisition integration process, it was recognised that acquisition or merger activities create value not only from strategic factors realised through synergies (see Chatterjee, 1992), but also from the process itself, which leads to anticipated synergistic factors, as reflect in capital market expectations (see Jemison and Sitkin, 1986). Therefore, it is very important to understand the processes and factors resulting in corporate merger and acquisitions value creation before we critically evaluate the research paradigm of value creation. Evolution of Acquisitions In order to improve the understanding of the research hypothesis, firstly this paper attempts to review trends of acquisitions and mergers followed by comments on value creation during these periods. For illustration purposes, I will focus my attention to the US economy considering the fact that corporate sector is enriched with these activities and capital markets of United States are much developed comparative to rest of the world. Following section presents the analysis of corporate mergers and acquisitions programmes dated back to1897. The First Wave, 1897-1904: According to Gaughan (1999), this particular period is dominated by horizontal acquisitions resulting surge in stock markets and ultimately creation of monopolies. Some of the todays giant conglomerates created in first wave include General Electric, American Tobacco, Du Pont, Kodak and Standard Oil (see Gaughan, 1999). First Merger Wave 1897 1904 Year Number of Mergers 1897 69 1898 303 1899 1208 1900 340 1901 423 1902 379 1903 142 1904 79 Table 3.1 First Merger Wave 1897 1904 Source: Gaughan (1999), p.24 Figure 3.1 First Merger Wave 1897 -1904 Data Source: Gaughan (1999), p.24 The Second Wave, 1916-1929: In contrast to first wave which is termed as merging for monopoly, the second wave is termed as merging for oligopoly. Gaughan (1999) pointed out that the reason of this terminology is the predominance of vertical or horizontal integration of companies during the period of 1925 to end of the decade. Moreover, Jemison and Stikin (1986) argued that the abundant capital availability stimulated by favourable economic conditions resulted in prominent corporate mergers and integration. Further according to Gaughan (1999), the antitrust law force during this era was stricter comparative to the first merger wave, which created more oligopolies and vertical integration and fewer monopolies in contrast to earlier wave. The Third Wave, 1965-1969: According to Gaughan (1986), the decade of 1960s observed controversial of the merger and acquisitions activities and termed as conglomerates. The companies such as ITT (International Telephone and Telegraph Corporation, USA) and Textron acquired numerous unrelated businesses to diversify and to reduce cyclic risks. Furthermore, during this period the conglomerates not only grew rapidly and profitably but the management were perceived to be skilful as well, which facilitated the diversity in acquisitions and operations of the companies (see Judelson, 1969). For instance, Geneen (1984) documented that during this wave ITT built itself into a highly diversified conglomerate by acquiring various businesses such as insurance, food and car rentals. Moreover, he found that executives of the company used the advanced financial tools like detailed budgeting and tight financial controls to make these acquisitions successful and well-functioning. Following figure presents the overview of the a ctivities during the period: Scholars like Goold and Luchs (1993) argued that general management skills were one of the vital factors in successful acquisitions and mergers during this era, which also helped corporations to diversify in different businesses. Moreover, engaging in unrelated business by many companies was based on the assumptions that different businesses would not require dissimilar managerial skills (see Goold and Luchs, 1993). However, in late 1960s companies start facing performance problems and the share price of these conglomerates such as Textron fell almost 50% comparative to 9% drop in Dow Jones Industrial average (see Bonge and Coleman, 1972). Furthermore, in early 1970s companies began to experience profitless growth like General Electric sales increased by 40% from 1965 to 1970 but its profit actually dropped (see Goold and Quinn, 1990). According to Gaughan (1999), the era has been ended when ITT spin off in three different companies. It is perceived that most of the mergers during the period failed and companies jettisoned their under-performing and unrelated business to face the competitive environment (see Sikora, 1995). In addition, Sadlter et al (1997) observed that the combined value of businesses separated from their parent firms significantly increased to more than $100 billion in 1996 comparative to 1993 figure of $17.5 billion. Acquisitions in the 1970s: The merger and acquisition activities decreased significantly in 1970s, which can be seen in the following figure. Figure 3.3 Merger Acquisitions in 1970 -1980 Source: Gaughan (1999), p.36 As a consequence of problem in merger and acquisitions activities experienced by conglomerates, the senior executives realised that only general management skills are not sufficient for a successful transactions (see Chandler, 1962). Therefore, they focused their attentions toward the long term companys objectives instead of operating of strategic business units (see Christensen, 1965). Andrews (1971) highlighted that this change introduced the concept of corporate strategy for firms and most CEOs of the organizations started accepting that strategy is their unique and primary task. However, corporate strategy poses some practical problem and did not help executives in deciding about allocation of resources among businesses especially when each investment proposal has a different strategy (see Goold and Luchs, 1993). Moreover, Bower (1970) argued that investment decision should be part of overall business strategy rather than prevaricate on project to project basis. In 1970s these revolutions in corporate finance lead to the development of portfolio planning by Boston Consulting Group (1970). Soon, portfolio planning became famous in corporate sectors and according to the survey of Haspeslagh (1982) by 1979, 45 percent of the Fortune 500 companies were using portfolio planning in some form. However, with the passage of time problems related to portfolio planning emerged. As Goolds and Luchs (1993), argued that the corporate manager with long experience of particular sector of the industry found extremely difficult to manage their newly acquired businesses in vibrant and unfamiliar sectors. Consequently, this affected the performance of new acquisitions or mergers of the firms. In search of solution to this problem Hamermesh and White (1984) found that administration was a vital factor in explain business performance of mergers or acquisitions but many organizations incorrectly addressed the approach. The Fourth Wave, 1981-1989: The decade of 1980s seen another merger wave in business world. In this period, merger deals were frequent and larger and total value of mergers were approximately $.13 trillion in US (see Sikora, 1995). This was influenced by service sector and significant support from investors; lenders and globalization facilitated companies to finance the buyout deals (see Sikora, 1995). Moreover, the reasons of the fourth merger wave were excess capacity (see Jensen, 1993), agency problems (see Jensen, 1988), market failure (see Shleifer Vishny, 1997), and tax and antitrust law changes (see Bhagat et al, 1990). It seems that during 80s, diversified firms do not have capacity to create values therefore companies start re-thinking about role of corporate management as well as appropriate strategies for diversified firms. As highlighted by Goold and Luchs (1993) highlighted that in order to survive firms cut back costs and scale down their staffs but these were not adequate to create value. Furthermore, they argued that diversification strategies failed to create value for many businesses. Nevertheless, these failures compelled senior managers to transform their primary goals to creating shareholders values instead of building huge businesses (see Porter, 1987). Moreover, management of the companies started evaluating corporate performance like stock market by using economic indicator instead of accounting measures and take whatever steps were essential to enhance the value of their firms stock (see Goold and Luchs, 1993). However, value based planning based on financial tools of Return on Equity (ROE), internal rate of return and discounted cash flow provided different views to managers about competitive advantages and stock prices (see Rappaport, 1986). Further, Goold and Luchs (1993) pointed out that a higher stock price could be a reward for creating value. However, during the era of 80s firms that did not diversify into unrelated businesses and specialize into their core industry were able to create value and turn out to be successful companies (see Peter and Waterman 1982). Mintzberg and Lampel (1999) also support this notion by arguing that focused corporations which know their customers, have deep knowledge and understand their missions were better able to create value in contrast to companies that applied the diversification concept of value creation. In summary of the merger and acquisitions activities in 1960s and 1980s, it can be assert that conglomeration and diversification were the dominant trends in 1960s contrast to specialization and consolidations phenomena of 1980s. However, empirical evidence on value creation tends to suggest that significant merger and acquisitions of 60s reversed subsequently and did not lead to profitability. According to Shleifer and Vishny (1994) many of the conglomerates created in 1960s were destroyed in 1980s, which provides the evidence of failure in notion of merger acquisitions and value creation that was not expected in 1960s. The Current Wave, 1990-Present: According to Gaughan (1999), in contrast to 1960s decade of conglomerates and 1980s period of Leveraged Buyouts (LBO), the dominant deals of 90s were designed with a view to fit strategically among merging firms. Moreover, the forces behind the merger and acquisitions activities were different than earlier periods and corporate sector seen some of mega-deals during that period. For instance in 1996, the top 100 deals of merger and acquisitions were worth more than $1 billion or approximately 53.5% of total transactions (see Sikora, 1997). Merger Acquisitions in 1990s Year Number of Deals Value ($ Billions) 1980 1558 34.8 1981 2328 69.5 1982 2299 60.7 1983 2395 52.7 1984 3176 126.1 1985 3490 146.1 1986 2523 220.8 1987 2517 196.5 1988 3011 291.3 1989 3825 325.1 1990 4312 206.8 1991 3580 143.1 1992 3752 125.3 1993 4148 177.3 1994 4962 276.5 1995 6209 375.0 1996 6828 550.7 Table 3.2 Merger and Acquisitions in 1990s Data Source: (www.mergerstat.com) The era of 90s was said to the decade of Consolidation; which means combination of operating and management resources between two companies as well as their stocks, assets and liabilities (see Lipin, 1997). Furthermore, in 1990s, stable economic environment, relax antitrust laws, stock markets favourable conditions and low cost of capital were the catalyst of merger and acquisition trends. However, still many firms failed to create shareholder value and according to study by Mercer Management Consulting Inc. (1997) 48 percent of mergers failed to generate shareholder value in 90s comparative to 57 percent failure of 1980s (p.39, cited in Smith and Hershman, 1997). Nonetheless, the firms in 90s believed that larger pools of assets are essential either to survive or to grow but the question remains that how to discover ways to create value for portfolio of firms businesses? (see Goold and Luchas, 1993). To resolve this anomaly, three possible explanations have been identified: Firstly, as shown by Porter (1985) that diversification should be limited to companies which have synergy potential and without synergy a diversified business is nothing more than mutual fund. He also suggested that synergies can be attained when the portfolio of businesses create values more than sum of its individual components. Besides, the notion of synergy should be based on economies of scale and cost saving strategies (see Porter, 1985). However, in practice it has been found by studies such as Chatterjee (1992) that gaining synergy is not an easy task and most acquisitions and merger gains arise from either disposals of assets or from restructuring rather than synergistic benefits. It seems that synergy was a primary rationale for merger and acquisitions in the era but remains anomaly from value creation prospective as discussed by Goold and Luchs (1993). Secondly, the corporate strategy of the firms should focus on exploiting core competencies. For instance, Prahalad and Hamel (1989) suggested that the corporate portfolio should be based on technological competencies instead of portfolio of businesses. Similarly, Itami (1989) argued that invisible assets like reputation, brand names or customers list are the most valuable source for sustaining competitive advantage and could be used to create value by exploiting competitive opportunities. Furthermore, other competencies such as technology or managerial expertise can also be used to enhance the performance of business portfolio (see Haspeslagh and Jemison, 1991). However, this approach also has some drawbacks; for example, Goold and Luchs, pointed out that it can be difficult to assess the contribution of investment in building the competencies of a business especially when the investment is in new business area. Thirdly, the best way to create value via successful diversification is to build a portfolio of businesses, which fits with the managers logic and their management style (see Parahalad and Bettis, 1986). If conglomerates diversification is based on business with similar strategic logic then its possible to add value to business by adopting a common approach across all the business units. For instance Goold and Luchs (1993) exposed that sharing the skills or activities across organization can help corporate management to realize synergies. Moreover, Goold and Campbell (1987) found the evidence that top executives also find it difficult to deal with a wide range of styles and approaches. Review of Major Areas in MA This section presents the literature review of major areas focused by academics in merger and acquisition field. Consequently following five sub-sections have been established to review the academic literature: Performance Success in Merger and Acquisitions People in Merger and Acquisitions International Prospects of Merger and Acquisitions Best Practices in Merger and Acquisitions Valuation Issues in Merger and Acquisitions The measurement of success in merger and acquisition activities is mainly through quantitative research and is subject to various studies such as Gosh (2001); Healy et al (1992), in the field of finance or economics and also other directly related fields. People are normally unobserved in merger and acquisitions, however extensive studies like Bliss and Rosen (2001), addressed issues from ethical and organizational learning to more in depth personal perspective. Similarly, increasing trend of international trade and globalization attracted the attention of many researchers, for instance Rossi and Volpin (2004). The valuation of the companies is often overlooking in the field of merger and acquisitions. However, it is a very critical part of acquisition process and could be very helpful not only in the pre-acquisition stage but also during the acquisition process as well as at post-acquisition stage (see Becher, 2001). Finally, the best practices research in the field of merger and acquisition is usually done in the form of case studies but the quality and intensity of these studies vary widely (see Marks and Mirvis, 2001). Performance and Success in MA As stated before companies often engaged in the series of acquisitions and merger activities and early studies such as Barney (1988), tend to show that related acquisitions performed better than other acquisition transactions. However, relatedness itself does not create value for acquiring companies but synergy is the vital factor that helps companies to generate abnormal returns from acquisition programs. For example, Barney (1988) showed that synergistic cash flow stemming from relatedness, which is unique and private creates abnormal returns for shareholders of acquiring firm. However, later studies such as Hayward (2002), suggested that different level of relatedness results in various degree of success and moderately similar companies tend to be more successful than the companies that are highly similar or dissimilar in business or size to one another. He further concluded that if a firm experienced small losses in past acquisition in contrast to high losses or high gains then it has better chances of success in prospective acquisition. In addition, the timing of acquisition plays a vital role in success of the transaction and should not be too close or far-away from central acquisition (see Hayward, 2002). Similarly, Brown and Eisenhard (1997) argued that companies benefit differently depending upon their experimenting and timing of the merger and acquisition activities. Moreover, when the acquiring company has some inimitable resources then it can create value by utilizing these resources in targets company as suggested by Capron and Pistre (2000). However, they also added that if the source of synergies is recognized in target firm than market associate expected gains to target firm due to the competition among potential bidders. Consequently, this competition raises the price of target firm and would create value for shareholders of the target firm but also lead to under performance of acquirer. Nevertheless, performance success through merger and acquisitions is still controversial among academics as pointed out by Cording et al (2002). To resolve the issue Chatterjee (1992) measured the cumulative average of abnormal returns (CAAR) during the period of 11 months before the tender offer until 60 months after the tender offer. After studying the sample of 577 tender offers between the periods of 1963 to 1986; he suggested that net gain arises for the economy from these transactions but it does not necessarily create gains for everyone involved in merger and acquisition. More specifically, CAAR after 60 months were observed to be negative for unsuccessful bidders, zero for successful bidder and positive for target company. Furthermore, Chatterjee (1992) found much higher positive CAAR for restructured target companies in contrast to non-restructured targets. Certain studies view the merger and acquisition transactions from a different prospective. For example, Golbe and White (1993) proved in their study that macroeconomic environments influence the merger activities and the number of merger transactions increases in time of economic expansion comparative to decrease in programme at the time of economic down turn.Similarly, Amburgey and Miner (1992) studied the effects of companies momentum on merger activities and suggested that managers follow the past patterns. The academics such as Capron (1999), also attempted to assess the performance of the merger and acquisition activities by conducting the survey of prime stakeholders in merger activities. He further concluded that the available financial data is too gross to allow the separation between the types of pure value-creating mechanism. Moreover, he also argued that more often the objective of the companies is to retain the top management team of the targets firm, whether its a conglomerate or related merger. International Prospects of MA The emergence of globalisation and increasing trends in international trade fasten the number of local as well as cross-border acquisitions and merger activities. For instance, the cross-border acquisition activities in United States increased to 19% in 1999 from 6% in 1985 (see Seth et al, 2001). According to the study of Seth et al (2001), the evidence suggests that there are three motives for cross-border acquisitions such as synergy seeking, managerilism and managerial hubris. Moreover, the research tends to show that there is a positive relationship between the level of value creation and reverse internalization, asset sharing, financial sharing and market seeking ( as discussed by Seth et al, 2001). In addition, there seems to be association between value creation and governance system of bidders country. For instance, Seth et al (2001) argued that bidding companies from group-oriented governance system like Japan and Germany appear to be engaged in acquisitions and merger activities with higher level of value creation in contrast to bidding firms from market oriented governance system such as United Kingdom. Further enhancement of research in the area of cross-border merger and acquisition suggests that experience in merger and acquisition activities can be utilized to create value in another country. For example, Gugler et al (2003) compared the data of 15 years and proved that post merger patterns are similar across different countries. Moreover, their evidence also signifies that there are no major differences between domestic and cross-border mergers as well as manufacturing and service sectors around the world. With the passage of time and in the era of globalization the merger and acquisitions activities are increasing especially in emerging economies. The multinational companies often use the tools of acquisition and mergers to penetrate in new markets and economies particularly in emerging countries such as Central and Eastern Europe (see Milman, 1999). However, in many countries MNC mergers and acquisitions are seen as threats by government agencies, privatized companies and state enterprises. Therefore, in order to develop a successful alliance the acquisition or merger program should be designed in such as way that creates value for companies as well as the host-country governments (see Rondinelli and Black, 2000). Lastly, yet the number of merger and acquisitions across border appears to be increasing but it seems difficult to integrate and manage the successful processes. Hence, Inkpen et al (2000) suggested that the companies should critically evaluate the areas of decision making, communication, networking and socialisation, communication and the structure of authority and responsibility before involving in the process of MA. People in MA Only looking to financial aspects might limit the understanding about the question why MA activities are so widely used by companies as a tool to grow. Hence, another area focused by academics, such as Karitzki and Brink (2003), is related to merger and acquisitions and people. Generally, one of the motives for merger activities is to follow the cost-cutting strategies including synergy and targets customers. Often, the employees are laid off in the process of merger and acquisitions and consequently this creates new but conflicting networks of relationships in new companies as suggested by Vermeulen and Barkema (2001). Thus, it affects the success and results in under-performance of merger and acquisition programmes. Therefore, considering the affects of MA on employee or managers of the potential target firms are of similar importance as financial issues. Similarly, the research in the area of executive compensation pointed out that prior to acquisition or merger, management of acquiring company receive significant higher packages comparative to the executives of target firms (see Lynch and Perry, 2002). Hence, these issues can lead to turnover and morale issues that ultimately affect the success of anticipated integration from MA. Furthermore, in extreme circumstances, issues like these emerging from dissimilarities create hurdles to achieve the objective of the original merger and acquisitions. Thus, reconciling the differences is one of the major issues faced by the combined company to create value (as discussed in Lynch and Perry, 2002). Moreover, successful merger or acquisition depends upon the people in both target and acquiring firms. The attitude and opinion of the employees regarding acquisition or merger can change over the time. Schweiger and DeNisi (1991) conducted the survey of employees and compared the attitudes in pre-acquisition and post-acquisition period. Their results show that attitudes of the employees three months after the announcement of merger changed significantly and turn towards continual negative consequences (see Schweiger and DeNisi, 1991). Likewise, Covin et al (1996) studied the attitude of 2845 employees from a large manufacturing concern in post merger period. The results show significant differences between the target firm and acquiring companys employees in satisfaction with merger. The employees of acquired company faced high level of dissatisfaction and ultimately felt more stress due to changes introduced after merger. In addition, this stress is aggravated due to the direct competition between target firm and acquiring company. Furthermore, Covin et al (1996) pointed out that factors such as loss of power and status, changes in salary or benefits and lack of managerial direction result in high level of stress and dissatisfaction from merger activities. Hence, it has been suggested that in addition to financial aspects these types of issues should not be overlooked in order to create value and to develop a successful merger and acquisition programme (see Karitzki and Brink, 2003). Best Practices in MA It is often suggested that acquisitions are predominantly unsuccessful and numerous studies like Aiello and Watkins (2000), confirmed this fact. However, generally the conditions and environment is relevant before judging the results. Furthermore, there is lack of research in answering the question; what would happen if both the companies continued in their own separate way. Therefore, estimating the successfulness of merger or acquisition is a tricky anomaly (as discussed in Chaudhuri and Tabrizi, 1999). Moreover, the unsuccessful MA activities are more highlighted in contrast to successful programmes. Ed Libby, the chairman and CEO of AllState stated that when MAs fails they draw more notice despite the fact that lot of other projects fails in business but no one can see them because they remain within internal walls of the companies (cited in Cary, 2000). As stated earlier, there is no one strategy that fits all kinds of merger and acquisition activities, however systematic approaches such as suggested by Jan Leschly, can help companies to develop a successful plan. Jan Leschly, retired CEO of SmithKline Beecham suggested that they put their people on the boards of different companies by investing small amounts. Once the companies get going then they decide whether to buy it completely or not (cited in Cary, 2000). Likewise, understanding the various components of merger process is very vital to develop a successful merger or acquisition deal. However, it is very hard to enumerate the components especially when these are integrated with each other. According to Marks and Mirvis (2001), the successfulness of merger and acquisition is highly depended on following factors: Acquisition Plan Implementation of this plan Post-acquisition cooperation between firms after acquisition Moreover, they collected a number of factors that were mentioned in previous research such as strategic objective, clear selection, search and selection process etc. They also argued that pre-acquisition planning is very important for successful merger and acquisition plan and more prepared the people will more synergies in a combination will result (see Marks and Mirvis, 2001). Similarly, Aiello and Watkins (2000) suggested that every MA deal pass through following five stages: Screening potential deal Reaching initial agreement Condu