CELTA Assignment: Southern Cross Teacher Training

Southern Cross Teacher Training Cambridge University CELTA Skills Assignment |Name |Submission date |Word count | | | | | |Signature to confirm the assignment is your own work | | | These are the criteria by which this assignment is assessed.Before submitting the assignment, double check to make sure you have specifically addressed each area of assessment sufficiently. |Criteria |Trainer Comments | |Correctly use terminology that relates to language | | |skills and sub-skills, e. g. make sure a task you | | |design and name as skim reading is indeed a skim | | |reading task. | | |Relate task design to language skills development, | | |e. . make sure you provide a rationale for each task| | |(e. g. why is the initial task a reading for gist? ). | | |Find, select, and reference information learnt about| | |skills development from one or more sources. | |Use written language that is clear, accurate and | | |appropriate to the task. | | | | | | | | | |Pass 1st submission | Resubm ission required | | | |Fail | | | | | | | | | | | | Skills Related TasksSection 1: Justification of text The text that I have chosen, a critical review of ‘Harry Potter and the Deathly Hallows: Part 2’, has the potential to be hugely engaging and I could create a very interesting and enjoyable lesson based from it. The film itself is very dramatic and universal to all audiences, and the text depicts this clearly. This allows learners to read the language on offer and use the video trailer in the lead-in as contextual background.Using a film review format, a format that the learners will be familiar with, means that there will be greater focus on the reading skills of the learners, as they maybe put off by an unknown format, such as a legal document or medical journal. In addition the format of a film review is one that all learners would have seen before in a ‘real-world’ context and therefore understand the purpose and delivery of this text. As the film is recent and the whole series of films and books are a worldwide phenomenon, learners may appreciate the relevance and understanding of the basic plot and characters in the film.This maybe an advantage than teaching a previously unknown book or film as extra class time may be required to explain the synopsis and context to the learners. As a film review, the text is specifically designed to inform and entertain the general public about the film in question. This means learners will hopefully enjoy reading the text and will be interested to find out the opinion of a professional film critic, and perhaps compare that to their own opinions of the film.I will get the learners to use their own opinions of films by asking them to write a film review of their own. The learners can use the given text as a film review model so that they know what sort of lexis, register and structure to use for their productive task. This task will allow for free practice, however with a modeled example and a lso practice on forming critical opinions. Section 2 – A means of developing receptive skills and sub skills I will be trying to develop the learners’ reading skills.I will vary the activities so sometimes they maybe reading for certain facts, or reading in depth for a full and detailed understanding of the text. The first task I will give the learners will be a simple and straightforward ‘gist-task’ where learners have to confirm their predictions they made in the lead in task. Learners will be reading for specific information so may not read the full text in detail. This type of ‘gist-reading’ or reading for basic understanding will hopefully get the learners engaged in the text and get them understanding the context of the text.Reading for pre-defined material is another subskill that I could use this text to develop, as Harmer states in Practical English Language Teaching[1] how vital â€Å"extensive reading for the development of our stu dent’s word recognition† is. He thinks that â€Å"students need to be involved in both intensive and extensive reading† and hence the reason why the gist task I have chosen focuses on extensive reading and the detailed task does so on intensive reading.I would ask learners to read again and set some basic comprehension questions, perhaps in a true/false format or multiple-choice format. They will then have the opportunity to confirm this by pair comparison and open class feedback, accompanied by delayed error feedback. Using both types of reading techniques helps to improve both types of reading skills, which is something that learners will need for practically using English outside of the classroom. For a lead-in to this text I would initially show the class the trailer of the film.This will give a good engaging context to the lesson and all learners, irrespective of those who have seen the film, are on a the same level of pre-existing contextual knowledge. This means a greater focus on reading skills and language can occur, rather learners being confused about the plot and characters. I could perhaps use the trailer to elicit predictions form the learners about what happens in the film. I would then go on to elicit predictions about the success of the film and whether it was it would get a positive or negative review.Learners will then be thinking about their own opinions of the film and would find an authentic film review very useful to compare their own ideas. This would then lead straight into me handing out the text and asking learners to complete the gist task. This lead-in should aim to get learners thinking about Harry Potter and then subsequently on the topic of film reviews and critical opinions. As this document is a published in an international newspaper there are a few words that will need clarification for intermediate learners.I plan on highlighting five previously unseen words that are crucial for understanding of the text and not possible for their meaning to be deducted from the context. Only after the gist task will I go to elicit the meanings from these words, perhaps using antonyms, connotations or example sentences, as most of the complex lexis in the text are adjectives. Using these type of methods to clarify meaning I will hopefully be able to increase the knowledge of the learners while giving the learners a higher level of detail in their comprehension.For example I would have to clarify the meaning of ‘grim’. In order to do this I explain it was the antonym of happy/cheery, it is usually meant to describe desperate/bleak situations, and show an example sentence such as â€Å"it was a grim situation when the engine stopped†. If the learners were having further problems with the lexis other than the five specific words, I would write some synonyms on the board. This will allow learners to be able to understand the entirety of the text as well as expand their vocabulary.Th e varied comprehension activities that focus on developing different types of reading skills are attached. The first task (Question 1) is the initial gist question, where the learners have to guess the probable title and subtitle of the text. This means the learners will have to read the content of the text quickly to find out what the theme and approximate content of the text. In addition I asked the learners to write the title in the same style as the text is written, therefore meaning the learners have to scan read quickly for what sort of the language the author is using.This is backed up by the familiarity of the type of text and the content, which gives learners a deeper contextual background. Even if the learners are unsuccessful in guessing the title and its form the pair work comparisons and controlled open class feedback will allow learners to be exposed to other learners ideas and language. Then I would move onto the detailed comprehension task. Once the learners have rea d the text once for the gist task they will have to go back and read it after reading the detailed questions (Question 2).The detailed comprehension questions results in learners having to read the text in depth. However the information in the questions are predefined information that directs the learner to the specific part of the text to read in detail. The learners should be able to complete this task individually but if there are any learners struggling I can pair them up with a stronger partner for the learner-to-learner feedback. After that is complete I will get the learners to mark their own answers by using the key.This is often one of the best way for learners to see their own errors and more importantly why the made the error that they did. After this I would bring the class together again in open class feedback and go through any of the harder questions and explain why the learners made the errors they did. Section 3 – Developing productive skills and sub-skills I am aiming to develop the writing skills, in particular the draft writing skills of the learners. The text I have chosen is a model of a film review, so I am going to ask the learners to write their own film review about a film they have seen recently.Therefore the learners know what type of language, register and lexis is needed to write a film review. The learners will need a good level of writing skills because, as Jim Scrivener in Learning Teaching[2] backs up, â€Å"many learners have a specific need to work on writing skills† and â€Å"writing involves a different kind of mental process, there is more time to think, to reflect, to prepare, to rehearse, to make mistakes and find alternative and better solutions†. After finishing the reading task I would get the learners to write down five different opinions they had about their chosen film.This preparation time would allow learners to formulate ideas and more importantly how to convey them, while also allowing the m to collect their ideas together without being under pressure. From the step I would then set a time pressured situation where the learners have to come up with a draft version of their review. The benefit of this they will not focus on grammar and language but on the actual content. In addition the time pressure means the actual draft writing skills of the learners will improve, as under no time pressure the learners could write an accurate film review but not increase their skills.The next stage would be to give the learners an opportunity to self correct their work. In this step they would focus on grammar and language mistakes. If they can recognize their own errors without prompting then this is an improvement in their writing skills, as they would have to know the correct language to identify a mistake. This also makes them aware of the errors they are making themselves so in future they can get it right first time.Depending on the practicality of the classroom layout, I woul d either put the film reviews on the wall and have the learners read each other’s in a gallery type format or have another learner read their review. This means other learners have the opportunity to correct other learner’s work and the errors that were not spotted in the first self-correction will be made obvious to the learners. I would finally finish the class with some open class feedback and delayed error correction. Again this adds to the learners writing skills development, as it is obvious where the learners can improve

An Overview of Four Government Agency Websites Essay

The FNS website is dedicated to providing information regarding the distribution and availability of food throughout the United States. In relation to this, the site also contains data on nutrition, and well it is maintained across different regions and population groups. Statistical information on child nutrition, food distribution, as well as food security are all made accessible to the public; furthermore, statistical data on FNS programs, such as those on school meals and disaster relief, are available as well (FNS, 2010). In addition to such, other parts of the website also provide useful information. For example, accomplished studies and articles on issues in food and nutrition are also maintained in the reference section of the site. Similar to the website of other government agencies, the FNS website also contains instruction of how to apply for grants as well as jobs within the agency. Without doubt, for gaining insights on topics related to food and nutrition, and in the pursuit of remaining updated regarding the trends regarding such matters, the FNS website is a suitable option. Environmental Protection Agency (EPA) At present, environmental issues are evidently among the most discussed topics throughout the world. The EPA website provides its visitors information regarding various aspects of the environment particularly in the context of the United States. In this sense, not only does the site present statistical information on air quality according to region, but similar data regarding harmful emissions are also provided; interestingly, statistics on toxic releases are also made accessible to the general public (EPA, 2010). Also, aside from having news features about the environment, which of course encompasses the recent oil spill incident, supplementary information on how to maintain a responsible lifestyle for preserving and enhancing the natural environment are also featured in the site. In relation to such, it is apparent that the EPA website designed in a manner that even younger audiences may benefit from its features. Nonetheless, despite being approachable by a wide range of audiences, it is undeniable that experts and researchers would benefit from the abundance of updated statistical information which may be found on the EPA website. Federal Aviation Administration (FAA) The FAA, as its name implies, is mainly concerns with safety in the field of aviation. In this sense though, the issues covered by the FAA ranges from aircraft safety to pilot competency. FAA’s website offers a myriad of information readily accessible by any visitor. For one, it provides means to locate FAA offices and headquarters throughout various locations in the United States; in addition, a range of general as well as in-depth discussions pertaining to aircraft safety, traffic, policies, and even training are all available (FAA, 2010). Of course, given such a broad range of topics being assessed by the FAA, it is logical to assume that the types of statistical information correspond to such. In particular, statistical information on accidents, traffic, and consumer related aspects such as sales could be accessed through the FAA website; interestingly, statistical information on delays as well as pilot test results have been made available as well (FAA, 2010). Thus, it may be said, that the amount of statistical information on the FAA website, presents it as among the government agencies with the most abundant and detailed statistical information available. Bureau of Economic Analysis (BEA) Economics, in order to be understood at a functional level, of course entails the use and analysis of statistical information. Hence, the BEA provides concerned individuals with access to updated statistical information of the United States economy. Specifically, not only does the BEA website contain data regarding the local economy and the specific facets of the economy but it also provides information regarding international accounts as well; among some of the easily identifiable examples of statistical information shown on the BEA website are as follows: real GDP, personal income, international trade, and international transactions (BEA, 2010). Of course, aside from such, the website still contains less technical information such as news updates. For one, the oil spill incident as well as its implications for the United States economy is presented as one of the news highlights (BEA, 2010). Other related links containing business surveys, customer guides, research applications, and job openings are also available. Indeed, the BEA website contains a myriad of useful information, ranging from practical to the most technical, maintaining the economic awareness of the population. References Bureau of Economic Analysis. (2010). BEA Home Page. Retrieved from http://www. bea. gov/. Environmental Protection Agency. (2010). Learn the Issues. Retrieved from http://www. epa. gov/epahome/learn. htm. Federal Aviation Administration. (2010). FAA Home Page. Retrieved from http://www. faa. gov/. Food and Nutrition Service. (2010). Data and Statistics. Retrieved from http://www. fns. usda. gov/fns/data. htm.

Conflict of Parents and Teens

The most common issue in our world today is the conflict between parents and teenagers. However, it is more than just conflict. What was once a sort of a â€Å"B.F.F.† relationship is now sour and bitter; full of arguments and sometimes fights! The arguing becomes an everyday thing and the parent nor is the child able to prevent it. It becomes natural to both. With that in mind, yes it is conflict, but it’s not forever; just temporary. Ask yourself a question about the situation†¦ Why are the teenage years more difficult with parents? Well, simply because the teenage years are when teens seek identity and parents majority come in-between it. In the present time, 13 years old is when everything goes downhill for the relationship. We start becoming more rebellious, the â€Å"back-talking† starts, conflict problems with other teens, wanting to be independent and unfortunately its good-bye to the video games and hello to the parties! All of this at only age 13. Can you imagine what the next 5 years will be? When a person reaches his or her physical maturity, there is also a change in your mental state as well as physical. We mature much earlier now days. There is no longer a match between our demand for independence, and our ability to actually be independent! Our teenage bodies and minds are screaming â€Å"I am ready to be independent! I want to make my own decisions! I want to be my own boss!† Your parents and society are screaming back at you, â€Å"You are not ready to be independent yet! You have not learned what you need to know yet! You cannot support yourself! You do not yet fully understand the dangers in this world! You are not grown!† . . . . And in the end they are right. We struggle with this unnatural situation. Reference http://www.livestrong.com/article/7895-conflict-between-parents-teenagers-/

Solid Work Simulation Essay Example | Topics and Well Written Essays - 1000 words

Solid Work Simulation - Essay Example The concept of this analysis lies in the fact that the elements have the nods which would behave in the same way under different load conditions, thus it would be possible analyzing the three degrees of freedom of every nod can be fully translated by notation. Here probably, need to know how different load types will relate to the bending moments. The relationship between moment and loads. Since it is a look out for the build up towards the analysis methods, there is a need to explore the different load conditions. The different load conditions can be a) Moment Load, b) Point Load, c) Uniformly Distributed Load and d) Patch Load (Cprani C 2008). Solid Works Simulation writes the equations governing the behavior of each element taking into consideration its connectivity to other elements (Harmanto D 2008). The method brings up the results from hundreds of thousands of equations which relate the unknown to the knowns. Those functions which would be integrated just like any ordinary function. Then finally the solver finds the degree of freedom in every element at every nod. A number of simulation techniques have been developed to model a... Nonlinear Analysis-The stress-strain relationship of the material is not linear. -Induced displacements are large enough to change the stiffness. -Boundary conditions vary during loading (as in problems with contact) (Cprani C 2008). Buckling Analysis-this is conducted to predict critical loads and tests failure due to buckling.Frequency AnalysisThermal and Thermal Stress Analysis Optimization Analysis One can possibly make mistake in accessing a broad range of physical models and capabilities. -One should let SolidWorks Flow Simulation find the best dimensions or inlet and outletconditions that satisfy goals, such as force, pressure drop, or velocity (ProductDiscription 2009) In clearly understanding the effects of temperature changes in parts and assembles. In performing dynamic analysis on parts and assembles, it will require making a number of different studies (Product Discription 2009) The Use of Mesh Size and ShapeA number of simulation techniques have been developed to model and analyze different processes and to help decision- makers Halppin 1977). Cell-based modeling has been investigated in simulation (Zhang et al. 2005, Zhang et al. 2006). A subdivision of model during the analysis becomes necessary for the mathematical simulation. This task of subdividing is normally called to be the Meshing. Meshing helps to come up with more accurate results, at the same time it will require more computer resources. One can always make use of the mesh control to reduce the size of the element in order to improve the accuracy of the results.

HVT1 Essay Example | Topics and Well Written Essays - 750 words

HVT1 - Essay Example Some roots of later civilizations can be traced from earlier ones to demonstrate the role of art in the evolution of the human society. In the following discourse, the Middle Ages and Renaissance art periods are analyzed for such similarities and differences to come to the conclusion of their roles on the status of art. Some of the most famous ancient events of art are related to the period of time between the fall of the Roman Empire and the commencement of the Renaissance (300 and 1400 AD respectively). During this period, there was a transformation of a majority of the human society from traditional aspects of religion and the establishment of Christian belief. The power of the church on the human society during these transformations characterizes the driving force that art had in the Middle Ages. Churches and cathedrals had their fair share of influential pieces of art during this age to such an extent that the most famous mosaics and murals of modern art owe their credit to this age (ArtHistory, 2009). Christianity plays the central figure of influence on the prevailing social and cultural events that were taking place during the Middle Ages. This fact is supported by the fact that the most influential Christianity cities during these events represented by Rome and Constantinople bear witness to their status as art culture centers to this day. However, the use of images was prohibited in worship and the use of colors in painting was generally muted. Towards the end of the period, more realism was advocated for by artists in the advancement of images in art. Art was largely conservative in the application of art images infusion into worship. Perhaps to establish the conspicuous link that art exhibits with previous art periods, all these art events carry a characteristic Classical Period art roots. Some of the distinct art and styles within the Middle Age include; Celtic,

Planning and Recruitment Coursework Example | Topics and Well Written Essays - 1500 words

Planning and Recruitment - Coursework Example This would obviously keep the organization abreast of the changes that are happening globally and which are important to comprehend. The importance of effective planning is that it keeps everything in order and allows one to understand the proper nuances of staffing and recruitment that come within the aegis of an organization in this day and age. The future of any organization is quite dependent on how staffing aspects shape up and what these will bring within its people to people contact within it in the long run. This shall mean a great deal of significance for the employees who get recruited within it for one reason or the other. Q 2: Construct a Job Advertisement of Human Resources Manager vacancy taking into consideration the below fields: Attention, Interest, Desire & Action As far as attention is concerned, there should be a proper heading in place which gains the much needed concentration of the intended audience. This will solve the issue of breaking through the clutter and reaching out to the end reader in a clear cut way. It will be very precise and to the point. Interest is gained with a proper visual in place which is provided the necessary cover through the body copy that is mentioned in the advertisement. It will make sure that the exact message is conveyed here which would be very crisp and interesting in its entirety. This will ask the reader to be a part of the advertisement even more. The desire aspect comes in when the audience long to be a part of the human resources manager vacancy which is given significance by what he is asked to do and what he must carry out in order to be a part of the organization that by now he is willing to recruit within. The action phase is made apparent when the prospective applicant is asked to either contact the person who has been mentioned through e-mail or a mailing address. This is the part where the applicant would contact the organization and thus get in line with the company that he wishes to be a part of. Q 3: Explain the internal and external Recruiting Strategies. Internal recruiting strategy is when the organization wishes to fill up a vacancy from inside its entirety. On the other hand, external recruiting strategy is applied when the business seeks a new applicant from other sources that are outside the business domains. The recruiting strategy that is best utilized by the organization is the one that seeks the best talent for the said position under consideration and is less costly in terms of the amount spent. This would mean that some organizations would like to use a combination of both of these recruiting strategies from time to time while others stick to one of the two. It entirely depends on what kind of understanding the organization has with its own labor force and what it wants to achieve from the people that are working under its aegis. The internal recruiting strategy is usually fast-tracked because an employee would only need to change his position within the of fice. The external recruiting strategy is different and more cumbersome, as it demands more vigilance and extra controls to be implemented within its fore. This would mean that the external recruiting strategy is usually costly and requires hard work on the part of the human resources management realms. Q 4: Discuss the importance of Code of

Stress response Outline Example | Topics and Well Written Essays - 500 words

Stress response - Outline Example Stress as it is widely known and is linked to negative effects (Pond 2004). According to Braun and Anderson (2007), communication between cells is a stress response. The authors explain that a disturbance of homeostasis by harmful forces lead to stress. Additionally, stressors cause stress and can be either endogenous or exogenous. Coping with stress depends on various factors. Some of the factors that can determine ways of perceiving or coping stress are health, age, genetic factors and social support. Homeostasis reliability is a stress response. However, destruction of body tissues can occur with time in case there is an excess in response to stress. Neuroendocrine response and hormones are initiated when there is an excess to stress response. Stressors activate different patterns of response which in turn initiate different neuroendocrine pathways and neural. Stress is common to the human body because of its capability and its adaption to experience stress. Stress is regarded as negative if it persists due to challenges met by humans. Psychological impacts of stress vary depending on stressors. Study of stressors common on children or teenagers such as abuse, violence, marital problems and other stressing events in the family provide a clear view of psychological impacts of stressor. Child abuse is the most common problem in the society and has severe implications. For example, a child can view education negatively or perform poorly in school. Marital problems or divorce renders a child anti-social. The child remains depressed, anxious and less social than the peers. In adulthood stage, the child from divorced, or family with conflicts shows more stress and less friend support than a person from a family with no marital problems. Unrelieved stress causes depression, post traumatic stress disorders, panic attack conditions and drug or alc oholism addiction. Research shows that a child develops post traumatic stress disorder later in life when exposed to

International Business (Globalization) Essay Example | Topics and Well Written Essays - 1750 words

International Business (Globalization) - Essay Example Nevertheless, it is significant not to run away by means of the plan that the kind of globalization we have been discussing also involves multinationals turnover, on a number of outsized scale, to translational: International businesses are at present largely restricted to their where they originated from, only if we consider their overall business operations and activity; they stay heavily nationally rooted and carry on to be multinational, to a certain extent than translational ,organizations . (Palmisano 2006) While full globalization in this organizational sense may not have occurred on a large scale, these large multinational corporations still have considerable economic and cultural power. Multinationals can impact upon communities in very diverse places. First, they look to establish or contract operations (production, service and sales) in countries and regions where they can exploit cheaper labour and resources. While this can mean additional wealth flowing into those communities, this form of globalization entails significant inequalities. It can moreover, it may lead to outsized scale job loss in especially for those whose industries were in the past located. The wages paid in the recent settings can be nominal, and workers privileges and conditions pitiable. For instance, a 1998 study of exceptional economic zones in China showed that manufacturers for organizations such as Ralph Lauren, Adidas and Nike were the ones paying low wages, to the extent of 13 cents per hour Second, multinationals continuously look new or else under-exploited markets. They look to increase sales - often by trying to create new needs among different target groups. One example here has been the activities of tobacco companies in southern countries. Another has been the development of the markets predominantly populated by children and young people. There is increasing evidence that this is having a deep

Talent Management in CDG a Boeing Company Essay

Talent Management in CDG a Boeing Company - Essay Example The researcher states that organizations are currently embracing Talent Management as a tool of attaining organizations goals and objectives. As such, Talent Management aids in attaining competitive advantage of organizations through production, addition of market value, and organization effectiveness. According to Rog, Talent Management is a significant factor, which determines the ability of the organization to acquire and retain essential talent successfully. Moreover, Talent Management in an organization establishes the extent of employee engagement in performance of various organization activities. Companies face workforce cost in the overall running of their business operations. As such, an effective analysis of the processes of recruiting and hiring employees provide insights and visibility of areas, which a company needs to improve. This is because maintenance of employees who have the capacity and potential to perform leads to improvement in the performance level of the comp any. According to Peter, companies have discovered that having the best talent enables them to have a competitive advantage in the global economy. Currently, there are few companies, which have a sufficient supply of talent. This depicts that talent has become a limited resource, which companies have to focus on managing effectively in order to attain success in their performance levels. Continental Data Graphics (CDG) a Boeing Company belongs to the aviation industry since the company deals with the provision of software and engineering solutions for defence and aerospace industries. As such, the company needs to have an effective Talent Management structure, which will enhance in attainment of competitive advantage. Bent (2011) argues that professionals within the aviation industry are declining substantially. This depicts that CDG Company needs to adopt an effective Talent Management strategy, which will enhance in attainment of success of the company. Sean and Kleiner (1999) pos tulates that benefits and compensation, development and training, and provision of incentives, which include medical coverage, are some of the needs of employees, which Talent Management in a company has to focus on satisfying. Therefore, this research will focus on identifying and evaluating the process of Talent Management in CDG Company. Further, the research will identify how CDG Company performs in the market of labour shortage due to various labour dynamics. 1.3 Research Objectives This research is governed by the following objectives: 1) To define Talent Management and Talent 2) To discuss the process of Talent Management 3) To discuss the advantages and disadvantages of Talent Management 4) To describe the current Talent Management Strategy of Boeing Company 5) To identify employee’s perceptions of Talent Management at Boeing Company 6) To propose improvement to Boeing Company current Talent Management Strategy 1.4 Research Questions This research is governed by the f ollowing research questions, which will aid in attaining objectives and aim of the research. 1) What is Talent Management

Fundementals of nursing informatics Assignment Example | Topics and Well Written Essays - 750 words

Fundementals of nursing informatics - Assignment Example A patient care scenario will be discussed to discern how NANDA, NOC and NIC elements were applied. The data, information, knowledge and wisdom framework will be applied to develop the patient care scenario. STNs are utilized as part f the Electronic Health Records in healthcare setting and symbolize the nursing data, information, as well as knowledge, which can be kept in the electronic systems to be utilized as a reference by doctors or nurses. The scenario that this paper will be discussing is: 40 year old male patient presenting to the ED with CP x 3 days and c/o SOB. Pt is diaphoretic and pale on arrival. VSS are BP 123/74; HR 130; pt. with shallow rapid respirations rate 36; O2 sat 96% on 4L NC. The registered nurse chose the correct clinical diagnoses make use of the North American Nursing Diagnosis Association (NANDA) terminology rooted in the patient’s immediate needs, as well as her comprehensive evaluation. The care plan she developed has a linkage between patients’ needed goals, interventions and diagnoses. Utilizing the Nursing Outcomes Classification (NOC), the patient and nurse set the desired short-term and long-term goals. Nursing diagnosis, which would be practical for the scenario might be: reduced cardiac output r/t compromised regulatory mechanism; excessive fluid volume r/t compromised regulatory mechanism; fear r/t unknown outcome of developing situation, nervousness r/t situation of sickness and knowledge deficit r/t nonconformity with medication. Nursing Outcomes Classification (NOC), on the other hand, is an all-inclusive, standardized classification of clinical outcomes developed to assess the impact of interventions offered by nurses (Mà ¼ller†Staub et al., 2006). Rooted in the scenario, the NOC might be: Excessive Fluid Volume: Fluid Balance, Electrolyte and Acid-Base Balance, Hydration; Fear: States precise information on the situation, Verbalizes known fears; Anxiety:

Environmental History Essay Example for Free

Environmental History Essay During the last ice age, around 13,500 years ago, a number of people from other continents came to North America to find food. They have been able to walk across the Bering Land Bridge from Siberia and Alaska. This was likely possible because during that period the sea level were lower that it is today. The melting of the glaciers has cleared some passage for the Alaskan to spread and colonize areas throughout South America within the period of 1,000 years. In their conquest, these people had a major impact on the ecology and wildlife to which they have been destined. Studies on the archeological findings stated that prior to the coming of the early North Americans, the lands were covered with lush vegetation and large species of mammals and birds. The herbivores even included 3 species of elephants such as the woolly elephants, the giant mammoths and the mastodons. Such animals which are common were giant animals like bison, ground sloths, armadillos, beaver and tortoises. Giant predators also are preying on different herbivores. Such predators were the cheetahs, saber-toothed tigers, lions and giant wolves. Most of these large predators have migrated from the boreal forests of Canada to live in the forest of North America. Animal remains of these unimaginable sizes and power of these animals have been found but where and why these species have vanished is a questionable issue. Tim Flannery’s book The Eternal Frontier: An Ecological History of North America and Its Peoples concluded that during the coming of the early North Americans there was what he call the Pleistocene Overkill. He hypothesized that during the colonization of humans and reaching far across the continents, they almost wiped out large herbivores through hunting. Large animals were more noticeable thus making them prime targets. Their low reproductive rates cannot compensate for the losses because of frequent hunting. When these animals became extinct, their predators became extinct as well. The extinction of the predators made an impact in the extinction of large scavenger birds. Only animals which can prey on and frequent the oceans did not suffer high extinction rates during this time. (Moyle Orland, 2004). There are also evidences that the early North American people has manipulated their surroundings and that they have modified their environment as based on observation of settlers from Europe. The settlers have documented that Indians shaped their environment through the use of fire especially during the late summer to minimize the valley’s underbrush and reduce the number of trees. This is to facilitate hunting and do their gathering. While the American Indians are moving across seasonally while using fire for easy game hunting, the European settlers made themselves fences and farmhouses as well and bringing with them domesticated animals and crops. The Europeans however, have influenced some of the Indians to properly control or stop the use of fire and introduced to them the proper use of land use and establishing properties and boundaries for their domain (Northwest, 1998). Eyewitness accounts from the early European explorers, trappers, soldiers and missionaries affirmed that prior to their settlement the wilderness were not pristine but rather the product of remains of thousands of years of usage and management by Native Americans. The Native Americans’ management also has consequences on their ecosystems and one example is the extinction of most large mammal species in North America between 10,800 and 10,000 years ago. This is probably the result of hunting practices of Paleo-Indians as previously mentioned and with the effect of rapid environmental changes. Once again the setting of fires for hunting, land clearance, warfare and signaling as well as forest fires contributed to the degradation of forest and ecology in the pre-modern American era (Bonnicksen, 2000). Based from The Ecological Indian: Myth and History by Shepard Krech III, the Paleo-Indians had a great role in the extinction of animal species in North America. Krech believe that Paleo-Indians played great role in the Pleistocene extinctions about 11,000 years ago when many indigenous animal species in North America vanished. Severe climate changes however were also contributory to the extinctions of such animals. Krech uphold that there was actually human intervention in the exploitation and extinction of animals in that period because of two important evidence. Such were the findings of Paleo-Indian artifacts with the remains of extinct animals and the fact that there was already the extinction of animals before the arrival of European settlers in North America. Notably, the use of fire by the North American Indians was widespread as an important method for their subsistence. Fire is also used for communication, aggression and travel. Notably, vast tracts of forest lands were burned so that animals may move out and go to a place where they could be easily hunted. These aboriginals thus destroyed the habitats of elk, deer, buffaloes, wolves and beaver thus killing them for their meat and fur (Orton, 1999). At the time of the arrival of the Europeans, many Indians were already farmers. Farmers in the East and Southwest were raising corns, beans, pumpkins and squash which are necessary for their subsistence because five thousand years ago, agriculture was already a practice in America. By 1500, millions of acres of were already cleared and planted crops by the indigenous people. Furthermore, there was a constant set of fire to more hundreds of millions of acres to improve game habitat, clearance for travel, reduce insect pests and to enhance conditions to grow berries. Vast areas of forest landscape in the West and East and park-like open spaces are usually smoking with low-intensity fires. Even in New England, Indians burn their woods twice in a year. The frequent burning of forest has created wide open grasslands which were formerly forests. Such indication of human disturbances and alteration in the ecological system were the proliferation of game animals such as the wild turkeys, white-tailed deer, ruffled grouse and other species commonly live only on forest edges and openings. By the end of the early 1600s, bison were roaming the prairies in the south and reached as far as Far East (Maccleery, 1999). The migration of early European settlers to North America, however, has introduced the barter and trade practices with the Native Americans. One of the most earliest and important industries in that period was the fur trade. The fur trade industry has played a great factor in the development of America and Canada for more than three centuries. The trade began in the 1500’s as an exchange of goods between Indians and Europeans and other tools and weapons as well. The Beaver fur was the most valuable of all the furs being traded. The earliest traders of furs in North America were the French explorers and fishermen who came to a place which is now Eastern Canada. With the scarcity of fur-bearing animals particularly the beavers, North Americans and Eskimos set traps as far as Canada. British and French empires were set in America because of fur trade in the early 1600’s. The prospect of wealth with this venture has brought Europeans to the New World thus the establishment of many trading posts in the wilderness. As settlements grew, states were established and later became such major cities as Detroit, New Orleans, and St. Louis. While in Canada, Edmonton, Montreal, Quebec and Winnipeg were also established. Because of its promising wealth venture, the fur trade has created a conflict between France and Great Britain in the American land. There were rivalries over trading and alliances between Indian tribes and other traders. Hostilities however, were shown by other Indians toward white settlers because the settlers prevented the Indians from clearing the forest with burning thus preventing the production of fur-bearing animals. With such disproportionate conflict, border between the United States and Canada were formed. But in the 1700’s, the fur trade started to decline in the Eastern United States as a result from the clearing of large tracts of lands for settlement. As the clearings grew wider, fur-bearing animals increasingly became scarce as well which hurt the trade in the Western America and Western Canada. Silk was found to be an alternative for clothing and accessories when fur-trading was stopped by 1870’s (Stuart, 2007). In conclusion to this, as stated by Shephard Krech III on his Reflections on Conservation, Sustainability, and Environmentalism in Indigenous North America, he has his own debate if really the old North Americans are environmentalists, ecologists or conservationist. As he has mentioned other facts rather than being in assuring, enough evidence must be drawn to come up with more solid proof that indeed they were. However, there is more information and evidence that showed generally, they have not been properly treated their environment in the proper perspective because what they all need in that period was to survive in the midst of a dark and forested land. The American Indians of today, however, are one of the most visible groups in rallying for the preservation of their land, their domain and their culture as well.

Montessori Senstive Periods Essay Example for Free

Montessori Senstive Periods Essay Define the term sensitive periods, and explain how the teachers knowledge and understanding of these periods determines his / her preparation and custodianship of the prepared environment A thorough understanding and knowledge of the sensitive periods (Montessori, 1972) that a child passes through is crucial in aiding the teacher to provide a suitable environment to assist a childs optimum development as the environment that the child is in plays a crucial role to their formation according to Montessori. A sensitive period refers to a special sensibility which a creature acquires in its infantile state (Montessori, 1966, page 38). Such sensitive periods were first discovered in insects by the Dutch scientist Hugo de Vries. Montessori stated that sensitive periods can also be found in children and are very important for a teacher to consider to aid optimum development through providing the correct type of environment. Therefore to fully understand the sensitive periods, an understanding of Montessoris periods of growth (Montessori, 2007) that she devised from birth to maturity is needed. These outlined the progress of a childs mental development, which correspond with phases of physical growth. Montessoris periods of growth consist of phase one; birth to six years, phase two; six to twelve years, phase three; twelve to eighteen years and phase four; eighteen to twenty-four years. Within each stage the child has different characteristics and needs, therefore requiring an alternative suitable environment for optimum development to occur, as each stage lays the foundations for the child to continue to develop within the next stage, with the first stage being fundamental (www. casadimir. org). Stage one is split into two sub-phases, comprising of birth to age three and three to age six. During this first stage the child has an absorbent mind (Montessori, 2007). The unconscious absorbent mind from birth to three years old, which is described as a mind that is constantly absorbing impressions from the environment; and yet does this without knowing that it is doing so, and without willing it (Standing, 1998, page 109). The conscious absorbent mind from three to six years continues to build on the faculties that developed during the phase of the unconscious mind. However, instead of soaking in the environment unconsciously it is the childs own ego which guides and directs him (Standing, 1998, age 112). This stage is critical for the foundations of an all round well developed child both mentally and physically. Stage two, from six to twelve years, is a stable periodwith noticeable physical and mental changes. The absorbent mind is replaced with reasoning and logical thinking; the child continues to develop and build upon his development from stage one. Stage three, twelv e to eighteen years, is split into two sub-phases comprising of twelve to fifteen years, the stage of puberty and fifteen to eighteen years, the stage of adolescence. This period is a very unstable and an emotional time for the child. Stage four, eighteen to twenty four years, the beginnings of adulthood; this time is usually very stable. Montessori identified six main sensitive periods, consisting of a period of sensitivity to order, to language, for refinement of the senses, for walking and movement, for small objects and to the social aspects of life, all of which are present during the first stage of growth; the absorbent mind. Theses sensitive periods are not consecutive; some are continuous and some overlap, which will now be looked at in greater depth. The period of sensitivity to order is one of the first sensitive periods to been seen in the development of a child and usually appears within the childs first month. Throughout this sensitive period the child requires a precise, ordered environment, which can be observed by the joy which children show at seeing things in their correct places (Montessori, 1972). The presence of this sensitive period however, is even more evident when the order is somehow interfered with. For example, in the Secret of Childhood (1972), Montessori describes the agitation of a 6 month old child when a parasol was placed upon the table by a woman entering the room; the child immediately began to cry. The woman automatically presumed that the child wished to play with the parasol, this brought on further frustration causing the little girl to push the parasol away when it was given to her. Her mother suddenly realised and when the parasol was removed from the room it was only then that the child became calm again. In Montessoris words the object out of place had violently upset the little girls pattern of memory as to how objects should be arranged (Montessori, 1972, page 50), thus causing the child distress demonstrating the need for a precise environment. Another example illustrated by Montessori in the Secret of Childhood (1972), was when she was on a guided tour through the tunnel of the Grottoof Nero in Naples, when a mother carrying a little boy took her coat off and threw it over her arm while she continued to carry the child. The child once again became agitated and continuously cried. Various approaches were used to try and sooth the child, all of which were unsuccessful, until Montessorisuggested that the mother should put her coat on. Following this action the childs tears disappeared and he continuously said Coat shoulder (Montessori, 1972, page 51), the child once again smiled as he felt that his mother had eventually understood him. With these examples and the knowledge of the childs sensitivity to order it demonstrates the need for the teacher to ensure a well ordered environment that is predictable to the child, while allowing sufficient freedom and time for the child to explore ontheir own. The period of sensitivity for language occurs between birth and approximately five years old. During this time the child masters basic sentence patterns in their nativelanguage and goes on to develop more complex sentences during the next stage of growth. From the moment the child is born, without lessons and without conscious effort he learns to pronounce the language he hears around him with perfection (Standing, 1998, page 121), simply by listening to the language;words spoken slowly and clearly. The child listens voluntarily then goes on to utter sounds, experiencing vibrations and developing his vocal muscles. Montessori (1972) stated that the childs sensitive period for language tends to pass unnoticed, as the environment he is in, surrounded by adults speech provides the necessary requirements for his development. This sensitive period is only acknowledged when the child demonstrates their joy through smiles and bodily movements, when tuned into the sounds of language. The period of sensitivity for the refinement of the senses, begins approximately when a child begins to crawl and can truly manipulate and experience his environment, this continues generally until the age of eight. Through guided teaching using the correct material in an appropriate environment and practice, the childs senses can be refined so that the child can distinguish between minimaldifferences. Using the colour box to distinguish between gradients of colours or grading the sound cylinders is a good example of this. The period of sensitivity for walking and movement, occurs approximately at the age of one when the child first begins to walk. Although they walk slowly and with no real rhythmic step or goal, the child can walk for long periods of time covering great distances, showing thorough enjoyment during their travels (Lillard, 1972). This allows time for a child to explore the outside world with the freedom of a suitable large space, improving his physical coordination and fulfilling his desire to absorb his surroundings. The period of sensitivity for small objects becomes apparent when the child becomes mobile at around the age of one and has a larger, open environment to explore. The child is drawn towards small objects such as pebbles and tiny insects. This is demonstrated through an example from Montessori (1972) in the Secret of Childhood, when a fifteen month old child sitting on the paving outside suddenly burst into laughter. The adult saw nothing until a small insect was pointed out by the by the child; it is as though the child looks for items that are invisible to adults. The period of sensitivity for social aspects of life occurs at around three years of age when the child begins to realise that they are partof a group. The childs social interest is exhibited first as an observing activity, and later develops into a desire for more active contact with others (Lillard, 1972, page 36). Therefore, with providing an environment where a child is free to observe, experiment and explore amongst their peers without intervention, apart from when antisocial behaviour is presented, a child naturally forms correct social behaviour and a willingness to help others. The teacher needs a concrete understanding of the sensitive periods to be able to provide a suitable environment for a child to develop. A prepared suitable environment for example includes, clearly ordered, organised and readily available materials, child-sized furniture, low shelves and real life objects. Along with the freedom to explore and move around freely, these aspects all take the needs of the child into consideration, although observation of the childs abilities and interests by the teacher is equally as important for the teacher to make required adjustments to suit the childs needs at certain points in their development and particular sensitivities. It is important to support the requirements of the sensitive periods as once this period passes the child will no longer achieve his optimum development with this aspect of his inner self with ease. Also if a sensitive period is neglected it may hinder the development with other aspects of the childs development. In Montessoris words, If he passes through a period sensitive to order, the disorder he perceives can be an obstacle to his development and a cause of abnormalities (Montessori, 1972, page 49). Therefore a thorough understanding of a childs periods of growth and sensitive periods as well as exceptional observational skills is essential for a teacher to establish a desired environment to provide the opportunities for the sensitive periods to flourish. Bibliography Lillard, P (1972), Montessori A Modern Approach, Schocken books, New York Montessori, M (1972) The Secret of Childhood, Ballentine, New York Montessori, M (2007) The Absorbent Mind, Montessori-Pierson Publishing Company, Amsterdam Standing, E. M (1998) Maria Montessori: Her Life and Work, First Plume Printing, America www. casadimir. org Casa di Mir Montessori School (undated). Montessori Philosophy http://www. casadimir. org/montessoriphilosophy. htm

Impact of Bank Mergers and Acquisitions on Pakistan Banks

Impact of Bank Mergers and Acquisitions on Pakistan Banks 1. INTRODUCTION 1.1 Background of the Study The Pakistani banking sector has undergone extraordinary transformation over the years, in provisions of number of organizations, ownership constitution, as well as the deepness of operations. These modifications have been prejudiced mostly by challenges pretended by deregulation in policies of financial sector, globalization of procedures, technical innovations and embracing of managerial and prudential necessities that kowtow to international principles. The wave of merger and acquisitions that currently swept through the banking sector started after the announcement by the state bank of Pakistan, that banks in Pakistan should beef up their minimum capital adequacy ratio should according to bank risk weighted assets or set by SBP. Mergers and Acquisitions are commonplace in developing countries of the world but are just becoming prominent in Pakistan. Merger and acquisition is simply another way of saying survival of the fittest that is to say a bigger, more efficient, better-capitalized, more skilled industry. Is part of the natural evolution of industries? It is primary driven by Business motives or market forces and Regulatory interventions. The issues therefore , which this study intend to address are whether merger and acquisition will bring about efficient reliable and sound capital base for the bank that fully embraced mergers and to what extend can bank merge boost the confidence of the customers , the investors , the shareholders and ability to finance the real time sector . 1.2 Problem statement The recent sudden increase of bank mergers in Pakistan is attracting much attention, partly because of keen interest in what motivates companies to merge and how mergers affect efficiency. A view holds that companys merger not just to obtain superior but also to be well-organized. It is argued that mergers allow the banking industry to take improvement of new occasions created by transformation in the technical and authoritarian surroundings. A dispute of this is the reduction in the number of banks countrywide but the concentration of power in local banking markets has not increased. The problems of under-capitalization, mismanagement and poor corporate governance have continued to be sources of instability and corruption in successive Pakistani banking crises up till now. Hence, mergers are singing a useful role in restructuring the banking industry with no risk and lack of opposition though, it collide on competence be worthy of attention. This research will consider this inspection by probing the effect of the merger as well acquisition that had taken place in the banking sector of Pakistan on the performance of a selected bank. 1.3 Objectives of the study The reason of this project is to examine the overall impact of Banks mergers and acquisitions in the Pakistani Banking sector. This research also focuses on some issues: To explore the collision of merger as well as acquisition on bank effectiveness, profitability, enlargement and endurance. To observe the impact of the merger as well as acquisition on the stage of competitiveness in the Pakistani Banking Sector. To classify those which will give advantage and be defeated in the merger and acquisition procedures? Does merger boost the capital base of banks? Does merger improve customers service delivery in the area of information technology, innovation and boosting customers confidence? 1.4 Hypothesis The hypothesis with the intention of testing in this research is stated below as: H0: Merger and acquisition has not impact on the banks performance in Pakistan h3: Merger and acquisition has an impact on the banks performance in Pakistan 1.5 Significance of the study The requirement for having a jingle economy and most especially disinfecting the banking sector; It is anticipated that this work will hold out a solution to the importance and recompense of merger and acquisition as a policy tool for the survival of our banking sector. It will equally be of a tremendous significance to those outside the financial sector, who do not know much about some of the benefit of bank merger and acquisition. 1.6 The scope and limitation of the study The study will not in any way inhabit on the technical issues connecting to merger and acquisition or in the locale of work out figures, slightly, it will attempt to examine the impact of merger and acquisition in the Banking industry of Pakistan. The study will be carried out in Islamabad/Rawalpindi. For this reason the result cannot be generalized. Also, the study has nothing to do with other banks even though a number of them have experienced mergers too. CHAPTER 2 2.0 LITERATURE REVIEW There are many companies that coming together to originate another company and companies taking over the currently existing companies to expand their business (Altunbas, 2005). Due to recession many Pakistani companies are facing the feeling of uncertainty rising which become reason to alarmed to businessmen, it is not astonishing when we listen to about the enormous corporate restructurings comes into being, particularly in the previous couple of years. Some companies have been taken over and numerous have going to take internal restructuring, while confident companies in same area of trade have consider it valuable to merge with each other to form one company. There are many gears of merger and acquisitions, offshoot, tender proposal, and many other forms of corporate restructuring in our daily news paper. Thus significant matters both for company decision and policy making and public image have been elevated. No company is considered secure from a conquest risk. On the encouraging elevation Mergers may be dangerous for the strong expansion and enlargement of the company. Victorious entry into innovative product and services and ecological markets may necessitate Mergers at some stage in the companys development. Flourishing contest in international markets may focus on abilities gain in a timely and proficient fashion in the course of Mergers. Most disputed that mergers boost value and competence and move capital to their uppermost and best uses, thus mounting shareholder value (Kruse, 2002). To decide on a merger or not is a complex issue, particularly in provisos of the technicalities concerned. We encompass almost all issues that the management must focus before taking final decision for merger. A lot of brainstorming would be necessary through the managements to attain conclusion. Judgment has to be fulfilled after discussing the advantages and disadvantages of the planned merger and the impact of that merger on the business, administrative benefits, on shareholders value, tax implications including stamp duty. 2.1 MERGER Meaning â€Å"A merger is a combining two companies in one corporation which is completely absorbed by another company. The less significant company loses its name and operates with more important company, which exists with its identity.† (Chawla, 2008) What Mergers actually mean: A merger is a combining two companies in one corporation which is completely absorbed by another company. It may entail absorption or consolidation. In absorption one company acquires another company. For example, Telenor and Tameer Microfinance Bank (TMB). In consolidation, two or more companies combine to form a new company. For example, Polka and Walls. The less significant corporation loses its identity and turn into the more significant corporation, which keep hold of its identity. A merger put out the merged corporation, and the existing company supposes all the rights, civil liberties, and liabilities of the merged company. A merger is not like a consolidation, in which two companies lose their detach uniqueness and join to make a totally new company. A rule is based on the relation that mergers inevitably remove competition between the merging companies. This relation is most sharp where the parties are direct opponent, because courts often believe that such provision are more horizontal to limit output and to raise prices. The terror that mergers and acquisitions decrease competition has inevitable that the government carefully examine planned mergers (Altunbas, 2005). in spite of disquiet about a decreasing of competition, companies are comparatively free to buy or sell whole companies or particular parts of a company. Mergers and acquisitions frequently result in a number of social reimbursements. Mergers can convey better management or technological skill to abide on underused assets. They also can create economies of scale and range that decrease costs, get better quality, and raise output. The opportunity of a takeover can deject company managers from acting in ways that fail to capitalize on profits. A merger can enable to owner to sell the company to someone who is more proverbial with the particular industry and maintain a better position to shell out the highest price. The view of a profitable sale encourages entrepreneurs to form new company. Merger is known as amalgamation too. Merger is the synthesis of two or more companies which are working in same era. All current and fixed assets, short and long term liabilities and the stocks of one company shifted toward other Company in reflection of payment in nature of: Cash Equity share of the acquired corporation, Debentures of acquired corporation, All of the above in mixed mode (Chawla, 2008) 2.2 Mergers vs. Acquisitions These conditions are usually used to describe same thing but in actuality, they have vaguely dissimilar meanings. An acquisition and merger pass on to the act of one corporation attainment of another company and obviously fitting the new possessor. Legally, the target corporation, the corporation that is bought, no more presents. Generally acquisition is use to acquired property in ownership. In the scenario of corporation combinations, an acquisition is to buy one company by getting controlling interest in all resources of other company. A merger is a combination of two or more corporations that are frequently about the similar size and concur to bond into one large corporation. In the scenario of a merger, mutually companys stocks come to an end to trade as the fresh corporation selects a latest name and a new stock is announced in position of the two different companys stock. This view of a merger is unrealistic by real world standards as it is often the case that one company is actually bought by another while the terms of the deal that is struck between the two allows for the company that is bought to publicize that a merger has occurred while the company that is doing the buying backs up this claim. This is done in order to allow the company that is bought to save face and avoid the negative connotations that go along with selling out. 2.3 Purpose of Mergers Acquisition: Purposes for mergers are given below. (1) Procurement of materials: To uphold the resources of supplies of raw materials or mediator product To get hold of economies of purchase as a discount, reduce transportation costs, many overhead costs to introduce new department, etc. To divide the reimbursement of suppliers economies by generalizing the resources (Cartwright, 1995). (2) Revamping production facilities: To accomplish economies of scale by combining production services throughout concentrated utilization of deposit and capital To generalized product specifications, perfection in quality of manufactured goods, growing market and planning at customers satisfaction in the course of amplification subsequent to sale services (Chawla, 2008) To attain improved manufacturing technology and knowledge from the acquired company To diminish cost, improvement in quality and manufacture competitive goods to hang on to and get better market share (Altunbas, 2005). (3) Market expansion and strategy: To get rid of competition and defend present market; To get new market channel in control of the acquirer; Strategic control of patents and copyrights To acquire innovative product for diversification or replacement of accessible goods and to increase products range; (Kruse, 2002) Strengthening keep hold of channels and sale the products to downsize the distribution; To decrease advertising cost and get better public image (4) Financial strength: To perk up liquidity and boast direct right to use to cash. To organize of extra and obsolete assets for cash To improve mechanism to maintain capacity, make use of better strength and the superior assets assistance; (Chawla, 2008) To achieve tax advantages To get better Earning Per Share (5) Commonachievements: To get better representation and draw attentions of better-quality managerial aptitude to administer its associations; To give more satisfaction to customers or product user (Chawla, 2008) (6) Own developmental plans: The main reason of merger and acquisition is reversed by the acquirer corporations strategies. A corporation decide to acquire the other business only when it develop it own goals to enlarge its operation by examining its internal strength where it is not going to face any difficulty in tax, accounting and in valuation of company, etc. It has a goal to attain a suitable amalgamation that provide opportunities to enhancement in its funds by increasing its securities. (7) Strategic purpose: The Acquirer Corporation inspect the merger to attain strategic goals in the course of substitute of amalgamation which could be vertical, horizontal merger, product expansion, market expansion or other particular different goals according to attentions of achieving the corporate strategies. Thus, various types of combinations distinct with each other in nature are adopted to pursue this objective like vertical or horizontal combination. (8) Corporate friendliness: Even though it is uncommon but it is reality that companies demonstrate degrees of cooperative spirit regardless of competitiveness to give security to each other from hostile takeovers and develop circumstances of partnership allotment of goodwill of another to get more efficiency through business amalgamation. (9) Desired level of integration: Mergers and acquisition are hunted to achieve the most wanted level of integration between the two corporations. This type of merger could be an operational or financial. The main reason and the necessities of the acquiring corporation get a long term benefit in choosing a appropriate partnership in merger or acquisition in companionship. (Chawla, 2008) 2.4 Reasons of merger Acquisition: The principal economic rationale of a merger id that the value of the combined entity is expected to be greater than the sum of the independent values of the merging entities. For example, if companys A and B merge, the value of the combined entity, V (AB), is expected to be greater than (VA+VB), the sum of the independent values of A and B. (Chawla, 2008) A variety of reasons like growth, diversification, economies of scale, managerial effectiveness and so on are cited in support of merger proposals. Some of them appear to be plausible in the sense that they create value; others seem to be dubious as they dont create value. The most plausible reasons in favor of mergers are strategic benefits, economies of scale, economies of scope, economies of vertical integration, complementary resources, tax shields, utilization of surplus funds, and managerial effectiveness. Strategic benefit: As a pre-emptive move it can prevents competitor from establishing a similar position in that industry. It offers a special timing advantage because the merger alternative enables the company to ‘leap frog several stages in the process of expansion. It may entail less risk and even less cost In a ‘saturated market, simultaneous expansion and replacement (through merger) makes more sense than creation of additional capacity through internal expansion Economies of scale: When two or more companys combine, certain economies are realized due to larger volume of operations of the combined entity. These economies arise because of more intensive utilization of production capacity, distribution networks, and research and development facilities, data processing systems and so on. Economies of scale are prominent in horizontal mergers where the scope of more intensive utilization of resources is greater. Even in conglomerate mergers there is scope for reduction of certain overhead expenses. Economies of scope: A company may use a specific set of skills or assets that it possesses to widen the scope of its activities. For example: proctor and gamble can enjoy economies or scope if it acquires a consumer product company that benefits from its highly regarded consumer marketing skills. Economies of vertical integration: When corporations occupied at dissimilar stages of manufacturing and value chain merge, financial system of vertical integration may be comprehend. For instance, the merger of a corporation occupied in searching and production with a company occupied in cleansing and marketing may get better co-ordination and manage. Vertical integration, though, is not forever a good thought. If a company does everything in-house it may not get the advantage of outsourcing from self-governing suppliers who may be additional well-organized in their division of the value chain. Complementary resources: If two companies have harmonizing resources, it may make sense for them to merge. A good example of a merger of companies which complemented each other well is the merger of online gift shop with TCS. Online gift shop is best to know the demands of customer but they dont have excellent transport infrastructure to deliver that gifts to customers but to make its system efficient online gift business should be merge/acquire with TCS or any other service like that. Tax shields: When a company with accumulated losses and/or unabsorbed depreciation merges with a profit making company, tax shields are utilized better. The company with accumulated losses and/or unabsorbed depreciation may not be able to derive tax advantages for a long time. However, when it merges with a profit making company, its accumulated losses and/or unabsorbed depreciation can be set off against the profits of the profit making company and the tax benefits can be quickly realized. (Mylonakis, 2006) Utilization of surplus funds: A company in a mature industry may generate a lot of cash but may not have opportunities for profitable investment. Such a company ought to distribute generous dividends and even buy back its shares, if the same is possible. However, most management has a tendency to make further investments, even though they may not be profitable. In such a situation, a merger with another company involving cash compensation often represents a more efficient utilization of surplus funds. Managerial effectiveness: One of the potential gains of merger is an increase in managerial effectiveness. This may occur if the existing management team, which is performing poorly, is replaced by a more effective management team. Another allied benefit of a merger may be in the form of greater congruence between the interests of the managers and the share holders. (Mylonakis, 2006) Often mergers are motivated by a desire to diversify and lower financing costs. Prima facie, these objectives look worthwhile, but they are not likely to enhance value. Diversification: A frequently acknowledged reason for mergers is to attain risk diminution through diversification. The degree, to which risk is condensed, of course, depends on the association connecting with the earnings of the merging units. at the same time as negative correlation fetches superior lessening in risk, positive correlation takes smaller diminution in risk. Corporate diversification, though, may present value in at smallest amount two special gears. (Chawla, 2008) 1) If a company is overwhelmed with troubles which can put in danger its existence and its merger with one more company can hoard it from possible liquidation. 2) If shareholders do not have the chance of diversification because one of the corporations is not traded in the bazaar, corporate diversification might be the merely possible route to risk diminution. Lower financing costs: The outcomes of larger size and greater earnings and stability, many argue, are to reduce the cost of borrowing for the merged company. The reason for this is that the creditors of the merged company enjoy better protection than the creditors of the merging companies independently. Increase Supply-Chain Pricing Power: Bybuying out one of its suppliers or one of the distributors, a business can eliminate a level of costs. If a company buys out one of its suppliers,it is able to save on themargins that the supplier was previouslyadding to its costs; this isknown asa vertical merger.If a company buys out a distributor, it may be able to ship its products at a lower cost. Eliminate Competition: Many MA dealsallow the acquirer to eliminate future competition and gain a larger market share inits products market.The downside of thisis that a large premium is usually required to convince the target companys shareholders to accept the offer. It is not uncommon for the acquiring companys shareholdersto sell their shares and push the price lower in response to the company paying too much for the target company. Synergy: The most used word inMA is synergy, which is the idea that by combining business activities, performance will increase and costs will decrease. Essentially, a business will attempt to merge with another business that has complementary strengths and weaknesses. (Mylonakis, 2006) 2.5 categories of mergers Acquisitions The resulted merger and acquisition is based on the offeror corporations attention what it desires to attain. Depend on offerors goal, mergers could be conglomeratic, vertical, horizontal, and circular which will explain below. I. Vertical combination: A corporation merged with another company to increase espousing in backward integration and forward integration to absorb the resources of supply in market. The acquiring business due to merger can reduce inventories and finished products. In the vertical combination, the acquirer may be a supplier or a buyer who use their intermediary material for finished goods. (Ahmed Badreldin, October 2009) There are some benefits from merger that acquiring companies achieved i.e. 1. Due to imperfect market and shortage of resources and obtained products, it gets strong position. 2. Has monopoly in goods specifications. II. Horizontal combination: It is a combination of two competitive companies which are at same level of success in industry, and both companies should be related from same business. The main rationale of such mergers is to get economies of scale by removing repetition of conveniences and the processes and expansions the product line, diminution in speculation in working capital, removal in competition attentiveness in product, lessening in advertising costs, raise in market segments and work out improved control on market (Badreldin, 2009). III. Circular combination: Corporations generating unique products look for merger to contribute to general division and investigate facilities to get economies by reducing cost on replication and prop up market growth. The acquiring corporation gets advantaged as diversification and resource sharing. IV. Conglomerate combination: It is combination of two corporations affianced in different businesses. Main reason of this type of merger remains consumption of finances and increase debt capacity by bringing change in their financial system and also boost share holders leveraging and earning per share, lessening average cost of capital and in that way raising present worth of the outstanding shares. Merger increases the on the whole constancy of the acquirer corporation and generates balance in the corporations whole portfolio of various products and manufacturing processes. (Sue Cartwright, May 01, 1995) V. Market-extension This entails the grouping of two corporations that sell the identical products in dissimilar markets. A market-extension permits for the market that can be accomplished to develop into larger and is the foundation for the repute of the merger. VI. Product-extension This merger is flanked by two corporations that sell different, but to some extent associated products, in a same market. This allows the new, larger company to group their goods and sells them with better success to the previously common market with the intention of the two different companies shared. VII. Accretive In accretive an acquired firms earnings per share enlarge. A substitute way of manipulative this is if a corporation with a high cost to earnings ratio obtains one with a less price earning ratio. (Chawla, 2008) 2.6 Concerns of Mergers Acquisitions Conglomerate, Horizontal and vertical mergers each hoist unique competitive alarms. Horizontal Mergers: Horizontal mergers lift up three basic cutthroat problems. The first is the removal of competition among merging corporations, which, depending on their bulk, could be important. The second is that the amalgamation of the merging companys operations might make sizeable market power and might facilitate the merged company to raise prices by falling output unilaterally. The third difficulty is that, by rising concentration in the related market, the deal might make stronger the ability of the markets outstanding contributors to synchronize their pricing and production decisions. The terror is not that the companies will connect in secret partnership but that the decrease in the number of industry members will improve implicit coordination of performance. (Chawla, 2008) Vertical Mergers: Vertical mergers have two essential forms: Forward integration: by which a company purchases a customer, and backward integration, in which a company gets a supplier. Swapping the market contacts with interior transfers can present at least two foremost benefits. First, the vertical merger maintains all transactions between a producer and its supplier, as a result adapt a potentially adversarial association into impressive more like a partnership. Next, internalization can provide management more effectual ways to scrutinize and get better performance. Vertical integration merger does not diminish the total number of economic units working at one level of the market, but it is changing patterns of industry performance. Either its a forward or backward integration, the newly acquired company may make a decision to deal only with the acquiring company, thus changing competition between the acquiring companys suppliers, customers, or opponents. Suppliers may misplace a market for their possessions; retail channel may be destitute of supplies; or opponents may locate that both supplies and channel are infertile. These potential raise to the anxiety that vertical integration will shut out opponents by restrictive their access to resources of supply or to customers. Vertical mergers also might be less competitive because their well-established market power may hamper new industry from entering the market. (Chawla, 2008) Conglomerate Mergers: Conglomerate mergers take many forms, series from provisional joint ventures to complete mergers. Moreover a multinational merger is wholesome, ecological, or a product-line addition, it engages companys that operate in separate markets. Therefore, a corporation transaction generally has no direct result on competition. There is no reduction or other alters in the number of companies in both the acquiring and acquired corporations market. (Chawla, 2008) Conglomerate mergers can provide a market or requirement for companies, therefore giving entrepreneurs liquidity at an open market price and with a key inducement to form new enterprises. The danger of conquest might force offered managers to increase competence in competitive markets. Conglomerate mergers also offer openings for companies to lessen capital costs and transparency and to attain other efficiencies. Conglomerate mergers, though, may lessen future competition by get rid of the option that acquiring company would have come into the acquired companys market separately. A conglomerate merger may exchange a strong company into a leading one with an influential competitive benefit, or else formulate a policy to make it complex for other corporations to penetrate the market. Such mergers also may lessen the number of minor companies and may enlarge the merged companys political influence, in that way weaken the social and political objectives of keeps self-governing decision-making hubs, assurance that small firm will get opportunities, and defending democratic practices. (Mylonakis, 2006) 2.7 Benefits of Mergers Acquisition Diversification: Corporations that want quick growth in dimension or diversification or market share in the variety of products may discover that a merger can be worn to accomplish the intentions instead of obtainable throughout the volume overriding practices of internal expansion or diversification. The company may attain the similar goals in a short time period merging with an existing company. Moreover this type of a strategy is frequently show low cost than the alternative of mounting the necessary production potential and capability. If a company that wants to expand operations in existing or new product area can find a suitable going concern (Altunbas, 2005). It may avoid many of risks associated with a design; manufacture the sale of addition or new products. Moreover when a company expands or extends its product line by acquiring another company, it also removes a potential competitor. Synergism: The scenery of synergism is very simple. Synergism exists at any time the value of the combination is greater than the sum of the real values. We can explain it as; synergism is â€Å"2+2=5†. But categorize synergy on appraise it may be difficult; in fact occasionally its implementations may be very delicate (Chawla, 2008). As generally defined to include any incremental worth is resulting from business combination, synergism in the basic economic good reason of merger. The incremental value may draw from raise in either operational or financial competence. (Chawla, 2008) Operating Synergism: Operating synergism may result from economies of scale, some degree of monopoly power or increased managerial efficiency. The value may be achieved by increasing the sales volume in relation to assts employed increasing profit margins or decreasing operating risks. Although operating synergy usually is the result of either vertical/horizontal integration some synergistic also may result from conglomerate growth. In addition, sometimes a company may acqu Impact of Bank Mergers and Acquisitions on Pakistan Banks Impact of Bank Mergers and Acquisitions on Pakistan Banks 1. INTRODUCTION 1.1 Background of the Study The Pakistani banking sector has undergone extraordinary transformation over the years, in provisions of number of organizations, ownership constitution, as well as the deepness of operations. These modifications have been prejudiced mostly by challenges pretended by deregulation in policies of financial sector, globalization of procedures, technical innovations and embracing of managerial and prudential necessities that kowtow to international principles. The wave of merger and acquisitions that currently swept through the banking sector started after the announcement by the state bank of Pakistan, that banks in Pakistan should beef up their minimum capital adequacy ratio should according to bank risk weighted assets or set by SBP. Mergers and Acquisitions are commonplace in developing countries of the world but are just becoming prominent in Pakistan. Merger and acquisition is simply another way of saying survival of the fittest that is to say a bigger, more efficient, better-capitalized, more skilled industry. Is part of the natural evolution of industries? It is primary driven by Business motives or market forces and Regulatory interventions. The issues therefore , which this study intend to address are whether merger and acquisition will bring about efficient reliable and sound capital base for the bank that fully embraced mergers and to what extend can bank merge boost the confidence of the customers , the investors , the shareholders and ability to finance the real time sector . 1.2 Problem statement The recent sudden increase of bank mergers in Pakistan is attracting much attention, partly because of keen interest in what motivates companies to merge and how mergers affect efficiency. A view holds that companys merger not just to obtain superior but also to be well-organized. It is argued that mergers allow the banking industry to take improvement of new occasions created by transformation in the technical and authoritarian surroundings. A dispute of this is the reduction in the number of banks countrywide but the concentration of power in local banking markets has not increased. The problems of under-capitalization, mismanagement and poor corporate governance have continued to be sources of instability and corruption in successive Pakistani banking crises up till now. Hence, mergers are singing a useful role in restructuring the banking industry with no risk and lack of opposition though, it collide on competence be worthy of attention. This research will consider this inspection by probing the effect of the merger as well acquisition that had taken place in the banking sector of Pakistan on the performance of a selected bank. 1.3 Objectives of the study The reason of this project is to examine the overall impact of Banks mergers and acquisitions in the Pakistani Banking sector. This research also focuses on some issues: To explore the collision of merger as well as acquisition on bank effectiveness, profitability, enlargement and endurance. To observe the impact of the merger as well as acquisition on the stage of competitiveness in the Pakistani Banking Sector. To classify those which will give advantage and be defeated in the merger and acquisition procedures? Does merger boost the capital base of banks? Does merger improve customers service delivery in the area of information technology, innovation and boosting customers confidence? 1.4 Hypothesis The hypothesis with the intention of testing in this research is stated below as: H0: Merger and acquisition has not impact on the banks performance in Pakistan h3: Merger and acquisition has an impact on the banks performance in Pakistan 1.5 Significance of the study The requirement for having a jingle economy and most especially disinfecting the banking sector; It is anticipated that this work will hold out a solution to the importance and recompense of merger and acquisition as a policy tool for the survival of our banking sector. It will equally be of a tremendous significance to those outside the financial sector, who do not know much about some of the benefit of bank merger and acquisition. 1.6 The scope and limitation of the study The study will not in any way inhabit on the technical issues connecting to merger and acquisition or in the locale of work out figures, slightly, it will attempt to examine the impact of merger and acquisition in the Banking industry of Pakistan. The study will be carried out in Islamabad/Rawalpindi. For this reason the result cannot be generalized. Also, the study has nothing to do with other banks even though a number of them have experienced mergers too. CHAPTER 2 2.0 LITERATURE REVIEW There are many companies that coming together to originate another company and companies taking over the currently existing companies to expand their business (Altunbas, 2005). Due to recession many Pakistani companies are facing the feeling of uncertainty rising which become reason to alarmed to businessmen, it is not astonishing when we listen to about the enormous corporate restructurings comes into being, particularly in the previous couple of years. Some companies have been taken over and numerous have going to take internal restructuring, while confident companies in same area of trade have consider it valuable to merge with each other to form one company. There are many gears of merger and acquisitions, offshoot, tender proposal, and many other forms of corporate restructuring in our daily news paper. Thus significant matters both for company decision and policy making and public image have been elevated. No company is considered secure from a conquest risk. On the encouraging elevation Mergers may be dangerous for the strong expansion and enlargement of the company. Victorious entry into innovative product and services and ecological markets may necessitate Mergers at some stage in the companys development. Flourishing contest in international markets may focus on abilities gain in a timely and proficient fashion in the course of Mergers. Most disputed that mergers boost value and competence and move capital to their uppermost and best uses, thus mounting shareholder value (Kruse, 2002). To decide on a merger or not is a complex issue, particularly in provisos of the technicalities concerned. We encompass almost all issues that the management must focus before taking final decision for merger. A lot of brainstorming would be necessary through the managements to attain conclusion. Judgment has to be fulfilled after discussing the advantages and disadvantages of the planned merger and the impact of that merger on the business, administrative benefits, on shareholders value, tax implications including stamp duty. 2.1 MERGER Meaning â€Å"A merger is a combining two companies in one corporation which is completely absorbed by another company. The less significant company loses its name and operates with more important company, which exists with its identity.† (Chawla, 2008) What Mergers actually mean: A merger is a combining two companies in one corporation which is completely absorbed by another company. It may entail absorption or consolidation. In absorption one company acquires another company. For example, Telenor and Tameer Microfinance Bank (TMB). In consolidation, two or more companies combine to form a new company. For example, Polka and Walls. The less significant corporation loses its identity and turn into the more significant corporation, which keep hold of its identity. A merger put out the merged corporation, and the existing company supposes all the rights, civil liberties, and liabilities of the merged company. A merger is not like a consolidation, in which two companies lose their detach uniqueness and join to make a totally new company. A rule is based on the relation that mergers inevitably remove competition between the merging companies. This relation is most sharp where the parties are direct opponent, because courts often believe that such provision are more horizontal to limit output and to raise prices. The terror that mergers and acquisitions decrease competition has inevitable that the government carefully examine planned mergers (Altunbas, 2005). in spite of disquiet about a decreasing of competition, companies are comparatively free to buy or sell whole companies or particular parts of a company. Mergers and acquisitions frequently result in a number of social reimbursements. Mergers can convey better management or technological skill to abide on underused assets. They also can create economies of scale and range that decrease costs, get better quality, and raise output. The opportunity of a takeover can deject company managers from acting in ways that fail to capitalize on profits. A merger can enable to owner to sell the company to someone who is more proverbial with the particular industry and maintain a better position to shell out the highest price. The view of a profitable sale encourages entrepreneurs to form new company. Merger is known as amalgamation too. Merger is the synthesis of two or more companies which are working in same era. All current and fixed assets, short and long term liabilities and the stocks of one company shifted toward other Company in reflection of payment in nature of: Cash Equity share of the acquired corporation, Debentures of acquired corporation, All of the above in mixed mode (Chawla, 2008) 2.2 Mergers vs. Acquisitions These conditions are usually used to describe same thing but in actuality, they have vaguely dissimilar meanings. An acquisition and merger pass on to the act of one corporation attainment of another company and obviously fitting the new possessor. Legally, the target corporation, the corporation that is bought, no more presents. Generally acquisition is use to acquired property in ownership. In the scenario of corporation combinations, an acquisition is to buy one company by getting controlling interest in all resources of other company. A merger is a combination of two or more corporations that are frequently about the similar size and concur to bond into one large corporation. In the scenario of a merger, mutually companys stocks come to an end to trade as the fresh corporation selects a latest name and a new stock is announced in position of the two different companys stock. This view of a merger is unrealistic by real world standards as it is often the case that one company is actually bought by another while the terms of the deal that is struck between the two allows for the company that is bought to publicize that a merger has occurred while the company that is doing the buying backs up this claim. This is done in order to allow the company that is bought to save face and avoid the negative connotations that go along with selling out. 2.3 Purpose of Mergers Acquisition: Purposes for mergers are given below. (1) Procurement of materials: To uphold the resources of supplies of raw materials or mediator product To get hold of economies of purchase as a discount, reduce transportation costs, many overhead costs to introduce new department, etc. To divide the reimbursement of suppliers economies by generalizing the resources (Cartwright, 1995). (2) Revamping production facilities: To accomplish economies of scale by combining production services throughout concentrated utilization of deposit and capital To generalized product specifications, perfection in quality of manufactured goods, growing market and planning at customers satisfaction in the course of amplification subsequent to sale services (Chawla, 2008) To attain improved manufacturing technology and knowledge from the acquired company To diminish cost, improvement in quality and manufacture competitive goods to hang on to and get better market share (Altunbas, 2005). (3) Market expansion and strategy: To get rid of competition and defend present market; To get new market channel in control of the acquirer; Strategic control of patents and copyrights To acquire innovative product for diversification or replacement of accessible goods and to increase products range; (Kruse, 2002) Strengthening keep hold of channels and sale the products to downsize the distribution; To decrease advertising cost and get better public image (4) Financial strength: To perk up liquidity and boast direct right to use to cash. To organize of extra and obsolete assets for cash To improve mechanism to maintain capacity, make use of better strength and the superior assets assistance; (Chawla, 2008) To achieve tax advantages To get better Earning Per Share (5) Commonachievements: To get better representation and draw attentions of better-quality managerial aptitude to administer its associations; To give more satisfaction to customers or product user (Chawla, 2008) (6) Own developmental plans: The main reason of merger and acquisition is reversed by the acquirer corporations strategies. A corporation decide to acquire the other business only when it develop it own goals to enlarge its operation by examining its internal strength where it is not going to face any difficulty in tax, accounting and in valuation of company, etc. It has a goal to attain a suitable amalgamation that provide opportunities to enhancement in its funds by increasing its securities. (7) Strategic purpose: The Acquirer Corporation inspect the merger to attain strategic goals in the course of substitute of amalgamation which could be vertical, horizontal merger, product expansion, market expansion or other particular different goals according to attentions of achieving the corporate strategies. Thus, various types of combinations distinct with each other in nature are adopted to pursue this objective like vertical or horizontal combination. (8) Corporate friendliness: Even though it is uncommon but it is reality that companies demonstrate degrees of cooperative spirit regardless of competitiveness to give security to each other from hostile takeovers and develop circumstances of partnership allotment of goodwill of another to get more efficiency through business amalgamation. (9) Desired level of integration: Mergers and acquisition are hunted to achieve the most wanted level of integration between the two corporations. This type of merger could be an operational or financial. The main reason and the necessities of the acquiring corporation get a long term benefit in choosing a appropriate partnership in merger or acquisition in companionship. (Chawla, 2008) 2.4 Reasons of merger Acquisition: The principal economic rationale of a merger id that the value of the combined entity is expected to be greater than the sum of the independent values of the merging entities. For example, if companys A and B merge, the value of the combined entity, V (AB), is expected to be greater than (VA+VB), the sum of the independent values of A and B. (Chawla, 2008) A variety of reasons like growth, diversification, economies of scale, managerial effectiveness and so on are cited in support of merger proposals. Some of them appear to be plausible in the sense that they create value; others seem to be dubious as they dont create value. The most plausible reasons in favor of mergers are strategic benefits, economies of scale, economies of scope, economies of vertical integration, complementary resources, tax shields, utilization of surplus funds, and managerial effectiveness. Strategic benefit: As a pre-emptive move it can prevents competitor from establishing a similar position in that industry. It offers a special timing advantage because the merger alternative enables the company to ‘leap frog several stages in the process of expansion. It may entail less risk and even less cost In a ‘saturated market, simultaneous expansion and replacement (through merger) makes more sense than creation of additional capacity through internal expansion Economies of scale: When two or more companys combine, certain economies are realized due to larger volume of operations of the combined entity. These economies arise because of more intensive utilization of production capacity, distribution networks, and research and development facilities, data processing systems and so on. Economies of scale are prominent in horizontal mergers where the scope of more intensive utilization of resources is greater. Even in conglomerate mergers there is scope for reduction of certain overhead expenses. Economies of scope: A company may use a specific set of skills or assets that it possesses to widen the scope of its activities. For example: proctor and gamble can enjoy economies or scope if it acquires a consumer product company that benefits from its highly regarded consumer marketing skills. Economies of vertical integration: When corporations occupied at dissimilar stages of manufacturing and value chain merge, financial system of vertical integration may be comprehend. For instance, the merger of a corporation occupied in searching and production with a company occupied in cleansing and marketing may get better co-ordination and manage. Vertical integration, though, is not forever a good thought. If a company does everything in-house it may not get the advantage of outsourcing from self-governing suppliers who may be additional well-organized in their division of the value chain. Complementary resources: If two companies have harmonizing resources, it may make sense for them to merge. A good example of a merger of companies which complemented each other well is the merger of online gift shop with TCS. Online gift shop is best to know the demands of customer but they dont have excellent transport infrastructure to deliver that gifts to customers but to make its system efficient online gift business should be merge/acquire with TCS or any other service like that. Tax shields: When a company with accumulated losses and/or unabsorbed depreciation merges with a profit making company, tax shields are utilized better. The company with accumulated losses and/or unabsorbed depreciation may not be able to derive tax advantages for a long time. However, when it merges with a profit making company, its accumulated losses and/or unabsorbed depreciation can be set off against the profits of the profit making company and the tax benefits can be quickly realized. (Mylonakis, 2006) Utilization of surplus funds: A company in a mature industry may generate a lot of cash but may not have opportunities for profitable investment. Such a company ought to distribute generous dividends and even buy back its shares, if the same is possible. However, most management has a tendency to make further investments, even though they may not be profitable. In such a situation, a merger with another company involving cash compensation often represents a more efficient utilization of surplus funds. Managerial effectiveness: One of the potential gains of merger is an increase in managerial effectiveness. This may occur if the existing management team, which is performing poorly, is replaced by a more effective management team. Another allied benefit of a merger may be in the form of greater congruence between the interests of the managers and the share holders. (Mylonakis, 2006) Often mergers are motivated by a desire to diversify and lower financing costs. Prima facie, these objectives look worthwhile, but they are not likely to enhance value. Diversification: A frequently acknowledged reason for mergers is to attain risk diminution through diversification. The degree, to which risk is condensed, of course, depends on the association connecting with the earnings of the merging units. at the same time as negative correlation fetches superior lessening in risk, positive correlation takes smaller diminution in risk. Corporate diversification, though, may present value in at smallest amount two special gears. (Chawla, 2008) 1) If a company is overwhelmed with troubles which can put in danger its existence and its merger with one more company can hoard it from possible liquidation. 2) If shareholders do not have the chance of diversification because one of the corporations is not traded in the bazaar, corporate diversification might be the merely possible route to risk diminution. Lower financing costs: The outcomes of larger size and greater earnings and stability, many argue, are to reduce the cost of borrowing for the merged company. The reason for this is that the creditors of the merged company enjoy better protection than the creditors of the merging companies independently. Increase Supply-Chain Pricing Power: Bybuying out one of its suppliers or one of the distributors, a business can eliminate a level of costs. If a company buys out one of its suppliers,it is able to save on themargins that the supplier was previouslyadding to its costs; this isknown asa vertical merger.If a company buys out a distributor, it may be able to ship its products at a lower cost. Eliminate Competition: Many MA dealsallow the acquirer to eliminate future competition and gain a larger market share inits products market.The downside of thisis that a large premium is usually required to convince the target companys shareholders to accept the offer. It is not uncommon for the acquiring companys shareholdersto sell their shares and push the price lower in response to the company paying too much for the target company. Synergy: The most used word inMA is synergy, which is the idea that by combining business activities, performance will increase and costs will decrease. Essentially, a business will attempt to merge with another business that has complementary strengths and weaknesses. (Mylonakis, 2006) 2.5 categories of mergers Acquisitions The resulted merger and acquisition is based on the offeror corporations attention what it desires to attain. Depend on offerors goal, mergers could be conglomeratic, vertical, horizontal, and circular which will explain below. I. Vertical combination: A corporation merged with another company to increase espousing in backward integration and forward integration to absorb the resources of supply in market. The acquiring business due to merger can reduce inventories and finished products. In the vertical combination, the acquirer may be a supplier or a buyer who use their intermediary material for finished goods. (Ahmed Badreldin, October 2009) There are some benefits from merger that acquiring companies achieved i.e. 1. Due to imperfect market and shortage of resources and obtained products, it gets strong position. 2. Has monopoly in goods specifications. II. Horizontal combination: It is a combination of two competitive companies which are at same level of success in industry, and both companies should be related from same business. The main rationale of such mergers is to get economies of scale by removing repetition of conveniences and the processes and expansions the product line, diminution in speculation in working capital, removal in competition attentiveness in product, lessening in advertising costs, raise in market segments and work out improved control on market (Badreldin, 2009). III. Circular combination: Corporations generating unique products look for merger to contribute to general division and investigate facilities to get economies by reducing cost on replication and prop up market growth. The acquiring corporation gets advantaged as diversification and resource sharing. IV. Conglomerate combination: It is combination of two corporations affianced in different businesses. Main reason of this type of merger remains consumption of finances and increase debt capacity by bringing change in their financial system and also boost share holders leveraging and earning per share, lessening average cost of capital and in that way raising present worth of the outstanding shares. Merger increases the on the whole constancy of the acquirer corporation and generates balance in the corporations whole portfolio of various products and manufacturing processes. (Sue Cartwright, May 01, 1995) V. Market-extension This entails the grouping of two corporations that sell the identical products in dissimilar markets. A market-extension permits for the market that can be accomplished to develop into larger and is the foundation for the repute of the merger. VI. Product-extension This merger is flanked by two corporations that sell different, but to some extent associated products, in a same market. This allows the new, larger company to group their goods and sells them with better success to the previously common market with the intention of the two different companies shared. VII. Accretive In accretive an acquired firms earnings per share enlarge. A substitute way of manipulative this is if a corporation with a high cost to earnings ratio obtains one with a less price earning ratio. (Chawla, 2008) 2.6 Concerns of Mergers Acquisitions Conglomerate, Horizontal and vertical mergers each hoist unique competitive alarms. Horizontal Mergers: Horizontal mergers lift up three basic cutthroat problems. The first is the removal of competition among merging corporations, which, depending on their bulk, could be important. The second is that the amalgamation of the merging companys operations might make sizeable market power and might facilitate the merged company to raise prices by falling output unilaterally. The third difficulty is that, by rising concentration in the related market, the deal might make stronger the ability of the markets outstanding contributors to synchronize their pricing and production decisions. The terror is not that the companies will connect in secret partnership but that the decrease in the number of industry members will improve implicit coordination of performance. (Chawla, 2008) Vertical Mergers: Vertical mergers have two essential forms: Forward integration: by which a company purchases a customer, and backward integration, in which a company gets a supplier. Swapping the market contacts with interior transfers can present at least two foremost benefits. First, the vertical merger maintains all transactions between a producer and its supplier, as a result adapt a potentially adversarial association into impressive more like a partnership. Next, internalization can provide management more effectual ways to scrutinize and get better performance. Vertical integration merger does not diminish the total number of economic units working at one level of the market, but it is changing patterns of industry performance. Either its a forward or backward integration, the newly acquired company may make a decision to deal only with the acquiring company, thus changing competition between the acquiring companys suppliers, customers, or opponents. Suppliers may misplace a market for their possessions; retail channel may be destitute of supplies; or opponents may locate that both supplies and channel are infertile. These potential raise to the anxiety that vertical integration will shut out opponents by restrictive their access to resources of supply or to customers. Vertical mergers also might be less competitive because their well-established market power may hamper new industry from entering the market. (Chawla, 2008) Conglomerate Mergers: Conglomerate mergers take many forms, series from provisional joint ventures to complete mergers. Moreover a multinational merger is wholesome, ecological, or a product-line addition, it engages companys that operate in separate markets. Therefore, a corporation transaction generally has no direct result on competition. There is no reduction or other alters in the number of companies in both the acquiring and acquired corporations market. (Chawla, 2008) Conglomerate mergers can provide a market or requirement for companies, therefore giving entrepreneurs liquidity at an open market price and with a key inducement to form new enterprises. The danger of conquest might force offered managers to increase competence in competitive markets. Conglomerate mergers also offer openings for companies to lessen capital costs and transparency and to attain other efficiencies. Conglomerate mergers, though, may lessen future competition by get rid of the option that acquiring company would have come into the acquired companys market separately. A conglomerate merger may exchange a strong company into a leading one with an influential competitive benefit, or else formulate a policy to make it complex for other corporations to penetrate the market. Such mergers also may lessen the number of minor companies and may enlarge the merged companys political influence, in that way weaken the social and political objectives of keeps self-governing decision-making hubs, assurance that small firm will get opportunities, and defending democratic practices. (Mylonakis, 2006) 2.7 Benefits of Mergers Acquisition Diversification: Corporations that want quick growth in dimension or diversification or market share in the variety of products may discover that a merger can be worn to accomplish the intentions instead of obtainable throughout the volume overriding practices of internal expansion or diversification. The company may attain the similar goals in a short time period merging with an existing company. Moreover this type of a strategy is frequently show low cost than the alternative of mounting the necessary production potential and capability. If a company that wants to expand operations in existing or new product area can find a suitable going concern (Altunbas, 2005). It may avoid many of risks associated with a design; manufacture the sale of addition or new products. Moreover when a company expands or extends its product line by acquiring another company, it also removes a potential competitor. Synergism: The scenery of synergism is very simple. Synergism exists at any time the value of the combination is greater than the sum of the real values. We can explain it as; synergism is â€Å"2+2=5†. But categorize synergy on appraise it may be difficult; in fact occasionally its implementations may be very delicate (Chawla, 2008). As generally defined to include any incremental worth is resulting from business combination, synergism in the basic economic good reason of merger. The incremental value may draw from raise in either operational or financial competence. (Chawla, 2008) Operating Synergism: Operating synergism may result from economies of scale, some degree of monopoly power or increased managerial efficiency. The value may be achieved by increasing the sales volume in relation to assts employed increasing profit margins or decreasing operating risks. Although operating synergy usually is the result of either vertical/horizontal integration some synergistic also may result from conglomerate growth. In addition, sometimes a company may acqu