MIS PRESENTATION

1. MIS PRESENTATION JOB ENLARGEMENT & ORGANIZATIONAL MERGER Presented by: Fermin Lopez Nicky Thunyapoo Jose Ochoa Ihsan Wakkihuddin

2. PROJECT QUESTIONS What is an example of a Vertical Integrated Process? What is the definition of a merger? What is the period of the first wave of mergers referred to?

3. Definitions to KNOW Job Enlargementis doing different tasks and not just the same thing all the time. It may involve taking on more duties and adds variety to person's job. Vertical Integration is the extension of company activities into stages of production either upstream or downstream activities. Horizontal Integrationis the acquisition of additional business activities at the same level of the value chain.

4. PAST OF JOB ENLARGEMENT • OFFICE AND ADMINSTRATION • PAPER INTENSE ENVIRONMENT • SLOW COMMUNICATIONS • 95% RULE • CENTRALLY PLANNED OPERATIONS PRODUCTION LABOR INTENSIVE PRODUCTION MANUAL AND REPETITIVE LONGER LEAD TIMES VERTICAL INTEGRATED/ASSEMBLY LINE

5. VERTICAL INTEGRATED PROCESS ASSEMBLY LINE FORD’S MODEL T

6. CHANGES THAT CREATED JOB ENLARGEMENT WORKERS BORED TECHNOLOGY DOMESTIC COMPETITION INTERNATIONAL TRADE AND FOREIGN COMPETITORS

7. PRESENT OF JOB ENLARGEMENT PRODUCTION MACHINE INTENSIVE PRODUCTION REPETITIVE BUT AUTOMATED FAST PACED PRODUCTION HORIZONTALLY INTEGRATED • OFFICE AND ADMINSTRATION • MOSTLY DIGITAL ENVIRONMENT • FAST AND INSTANT COMMUNICATIONS • MOSTLY DECENTRALIZED OPERATIONS

8. CHANGES THAT WILL MAKE JOB ENLARGEMENT A NECESSITY IMPROVED TECHNOLOGY INCREASING INTERNATIONAL TRADE INCREASING COMPETITION

9. FUTURE OF JOB ENLARGEMENT PRODUCTION JOB ENLARGEMENT WILL INCREASE MANY JOBS WILL BE ELIMINATED DUE TO TECHNOLOGY AND MACHINERY IMPROVEMENTS TECHNOLGY WILL CREATE NEW FIELDS AND JOBS • OFFICE AND ADMINSTRATION • TOTALLY DIGITAL ENVIRONMENT • INSTANT COMMUNICATIONS • TOTALLY DECENTRALIZED OPERATIONS

10. Mergers and Acquisitions The Past

11. Mergers and Acquisitions Merger - A merger is the combining of two or more organizations into one company.

12. The First Wave (1893-1907) “Merging for Monopoly” Definition: Monopoly- A monopoly is a situation in which one company controls an industry or is the only provider of a product or service.

13. The First Wave (1893-1907)“Merging for Monopoly” • Birth of monopolistic trusts in late 1890s in US • In 1882 Rockefeller formed the first oil trust, Standard Oil Trust to merge many oil companies throughout the west into one single company. • In 1899 Andrew Carnegie created the Carnegie steel company • In 1901 Morgan bought out Carnegie to create U.S. Steel Corporation.

14. The Second Wave (1919-1929) “Merger for Oligopoly” Definition: Oligopoly- Oligopoly is an economic conditions in which there are so few suppliers of a product that one suppliers action can have a significant impact on prices and its competitors.

15. The Second Wave (1919-1929)“Merger for Oligopoly” • Oligopoly is a market in which control over the supply of a commodity is in the hands of a small number of producers. • Example: William Durant formed a holding company and broadened his product line by merging and buying many of the component suppliers of automobiles. Result: he formed the company known today as GM.

16. The Third Wave (1945-1973)The “Conglomerate Merger” Definition: Conglomerate - In business a conglomerate is defined as a merger consisting of several unrelated firms whose merger increases and diversifies company assets

17. The Third Wave (1945-1973)The “Conglomerate Merger” • Operations were created on a multinational level, which created diversification throughout companies that acquired other companies outside of their industry. • Example: International Telephone and Telegraph (ITT) company. -President Harold Green’s strategic goal was to grow by merger, and ITT merged with nearly 250 companies in the span of a decade, many of them in unrelated businesses.

18. The Fourth Wave (1980 –1993)“The Takeover Wave” • Merging became acceptable • Global Competition -Companies outside the US bought US companies. • Many financial institutions merged EXAMPLES -Wells Fargo and Crocker National in 1986 -Daimler/Chrysler

19. The Fifth Wave (1993 – Present)“International Mergers” • Fueled by change bought on by the Internet, there was an accelerated pace of merger activity in the late 1990s. • ‘‘Megadeals’’ become commonplace all over the world in late 1990s. EXAMPLE: Exxon and Mobil oil company. Nations Bank and Bank of America.

20. Mergers and Acquisitions • 58 % of merger fails in early 1990s • Increasing number of mergers: Ex. ExxonMobil, ConocoPhilips, JP Morgan Chase • Most Recent Mergers: Ex. Sears & Kmart • Merged Nov 2004 • Renaming Kmart stores to Sears • Become 3rd largest retailer • Increase stock price (gone up since Oct. 2004) Present

21. Mergers and Acquisitions Examples of some factors for successful merger • Clarify and maximize the goals of merger • Identify all significant risks • Hiring the best people both sides and working as a team Present

22. Mergers and Acquisitions • Mergers takes a long time before succes can be properly seen • Many mergers promise synergy and other benefits • Cultural & Political Conflicts Future

23. Job Enlargement Mergers and Acquisitions • Reduction in # of employees • Reduction in operating cost • Successful mergers benefits from job enlargement • Employees who do multiple task usually remain after a merger Synergy