Do Acquirer Capabilities Affect Acquisition Performance? Examining Strategic and Effectiveness Capabilities in Acquirers

This paper examines acquisition performance from the perspective of acquirer capabilities. It argues that the strategic capabilities underpinning a firm’s competitive strategy can be utilized to create economic value in acquisitions. Acquirers with strong cost leadership capabilities are expected to leverage these capabilities to reduce post-acquisition costs as they integrate acquisition targets. Acquirers with strong differentiation capabilities are expected to utilize their strategic capabilities to increase post-acquisition revenues by improving branding, product design, sales, and services in their targets. We also explore the affect of an acquirer’s effectiveness capabilities on acquisition performance. Lastly, we examine how acquirer’s organize these capabilities, either at the business unit or corporate-level, in order to maximize their affect on acquisition performance. Based on a sample of 204 horizontal acquisitions occurring in the banking industry, we find support for the link between acquirer cost leadership capabilities and post-acquisition cost reduction. Acquirer effectiveness capabilities are associated with improvements in post-acquisition revenues and profitability. We conclude that a better understanding of the competitive capabilities of acquirers is important to understanding acquisition performance. This contributes directly to horizontal acquisition research, but can be extended to several areas of strategy research on M&As including: diversifying acquisitions, acquirer experience, and how acquirers can avoid “synergy traps”.Acquisitions ; Acquirer Capabilities ; Strategic Capabilities ; Effectiveness Capabilities ; Acquisition Performance

U.S. Airways Merger: A Strategic Variance Analysis of Changes in Post-Merger Performance

This case provides students the opportunity to apply strategic variance analysis (SVA) methodology in analyzing the performance changes realized in an airline merger. The U.S. Airways–America West merger provides an example of a complex, strategic action that simultaneously impacts firm size, unit pricing and costs, efficiency, and capacity for the combining airlines. This merger provides a rich example for the analysis since it combines U.S. Airways, a higher cost network airline that is geographically focused on the Eastern U.S., with America West, a low cost airline operating primarily along the Western U.S. The case includes merger and acquisition (M&A) theory discussing market power vs. efficiency motives for mergers and discusses the role of the U.S. Department of Justice and Federal Trade Commission in evaluating M&As and their impact on markets. The case asks students to serve as consultants applying the SVA methodology to the past U.S. Airways–America West merger and provide conclusions

Factores asociados con la intención de fumar y el inicio del hábito tabáquico en escolares: resultados del estudio ESFA en Barcelona

ResumenObjetivoDescribir los factores asociados con el consumo de tabaco y la intención de fumar en el futuro en una muestra representativa de escolares de primer curso de educación secundaria en Barcelona.Sujetos y métodosSe seleccionaron 37 escuelas al azar para participar en la evaluación de un programa europeo de prevención del tabaquismo (European Smoking prevention Frame Approach, proyecto ESFA). En estas escuelas 1.041 alumnos de primer curso de Enseñanza Secundaria Obligatoria (ESO) contestaron a un cuestionario diseñado por la Universidad de Maastricht para estudiar las actitudes y conductas relacionadas con diversos comportamientos, incluyendo el consumo de tabaco.ResultadosEl 9,8% de los chicos y el 12,6% de las chicas manifestaron fumar de forma regular u ocasional. Entre los no fumadores, un 61,4% de los chicos y un 73,3% de las chicas declararon tener intención de fumar en el futuro. En los chicos, los determinantes del consumo son la norma social (odds ratio [OR] = 2,5; intervalo de confianza [IC] del 95%, 1,2–5,2), el consumo de tabaco por parte de los hermanos (OR = 2,4; IC del 95%, 1,1–5,2), las actitudes contrarias al consumo (OR = 0,3; IC del 95%, 0,1–0,6), la práctica de deporte en el tiempo libre (OR = 0,3; IC del 95%, 0,1–0,7) y el dinero semanal disponible (OR = 3,2; IC del 95%, 1,5–6,8), mientras que la intención únicamente se asoció de forma significativa a las actitudes contrarias (OR = 0,3; IC del 95%, 0,2–0,5). Para las chicas, el consumo se asoció a la presión (OR = 2,5; IC del 95%, 1,2–5,0) y el consumo (OR = 6,0; IC del 95%, 2,4–15,4) por parte de los amigos, y las actitudes contrarias (OR = 0,2; IC del 95%, 0,1–0,4), mientras que la intención se halla asociada a las actitudes contrarias (OR = 0,4; IC del 95%, 0,2–0,6) y pasar tiempo libre en la calle (OR = 2,1; IC del 95%, 1,3–3,5).ConclusionesLos resultados corroboran la necesidad de abordar simultáneamente los distintos factores relacionados con el inicio del tabaquismo, incluyendo las actitudes, la influencia de las personas del entorno inmediato y la utilizacion del tiempo libre.SummaryObjectiveTo describe the factors asssociated with smoking and intention to smoke among a representative sample of firstgrade pupils of secondary education (12–13 years old) in Barcelona.Subjects and methods37 secondary schools were randomly selected to evaluate the impact of a European-wide smoking prevention program (European Smoking prevention Frame Approach, ESFA project). In these schools, 1041 pupils of first grade of secondary education responded to a questionnaire designed at the University of Maastricht to study life-style attitudes and behaviours, mainly smoking.Results9.8% of boys and 12.6% of girls declared to smoke either regulary or ocasionally. Among the no-smokers, 61.4% of the boys and 73.3% of the girls reported to have the intention to smoke in the future. Among the boys, factors associated with smoking included social norms (odds ratio [OR] = 2.5; 95% confidence interval [CI]: 1.2–5.2), smoking by siblings (OR = 2.4; 95% CI, 1.1–5.2), attitudes against smoking (OR = 0.3; 95% CI, 0.1–0.6), practicing some sports in the leisure time (OR = 0.3; 95% CI, 0.1–0.7) and having more available pocket money (OR = 3.2; 95% CI, 1.5–6.8). Intention to smoke was only related to attitudes (OR = 0.3; 95% CI, 0.2–0.5). Among girls, smoking was associated to perceived pressure to smoke (OR = 2.5; 95% CI, 1.2–5.0), consumption by friends (OR = 6.0; 95% CI, 2.4–15.4) and attitudes against smoking (OR = 0.2; 95% CI, 0.1–0.4), while intention was only associated to attitudes (OR = 0.4; 95% CI, 0.2–0.6) and hanging out in the street in the leisure time (OR = 2.2; 95% CI, 0.3–3.5).ConclusionsThe results stress the need to deal simultaneoulsy with the different factors associated to smoking initiation and attitude shaping, including cognitive factors, environmental factors, and patterns of leisure time utilization

Concomitant endocarditis and spondylodiscitis due to coagulase-negative Staphylococci and a review of the literature

Background: Coagulase-negative staphylococci (CoNS) are part of the normal skin flora. Although CoNS are generally considered as low pathogenic microorganisms, they can cause serious infections, particularly in the context of foreign body material. Case report: Here we present two cases of concomitant infectious endocarditis and spondylodiscitis; one caused by S. epidermidis, the other by S. haemolyticus. Additionally, we reviewed the literature for previously reported cases of concomitant endocarditis and spondylodiscitis due to CoNS. Conclusion: In patients with back pain and a cardiac device in situ, CoNS should be considered as causative pathogens for possible endocarditis and/or spondylodiscitis, and should not be regarded as contamination.</p

The effect of Brexit on the UK Economy (so far)

The political turmoil in the UK following the referendum on future membership of the European Union in 2016 provides a natural experiment for studying the effects of political uncertainty (in the Knightian sense) on the economy. We find that the subsequent confusion and infighting in British politics has not affected the real economy much – employment is at a historical high and output growth is positive – but there are some signs of slowing investment and house price increases. The stock market has also not been much affected although it did fall after the referendum of 2016. The main effect of the Brexit vote and the subsequent political developments is found in the currency market where news that make a hard Brexit more likely cause the currency to depreciate. We conclude that leaving the European Union without an agreement is likely to make the currency depreciate and the stock market fall while output declines. In contrast, leaving with an agreement that gives continued access to the Single Market would likely make the currency appreciate, the stock market rise and employment and output increase further

Susceptibility of common weeds and cultivated crops in major maize growing agroecological zones of Uganda to viruses causing maize lethal necrosis disease

Maize lethal necrosis (MLN) disease is caused when maize plants become co-infected with Maize chlorotic mottle virus (MCMV) and potyviruses notably Sugarcane Mosaic Virus (SCMV). Apart from maize, little is known about susceptibility of weed species and cultivated crop species usually growing in proximity with maize to MLN viruses in Uganda. The common weeds and crop plants were mechanically inoculated with combined sap from MCMV and SCMV infected maize plants. Samples were tested for MLN causing viruses by Double Antibody Sandwich Enzyme-Linked Immunosorbent Assay (DAS-ELISA) and Reverse Transcriptase-Polymerase Chain Reaction (RT-PCR). The weeds that were susceptible to MCMV were Digitaria abyssinica, Eleusine africana and Roetboellia cochinchinensis; while those susceptible to SCMV were Pennisetum purpureum, Panicum maximum and Roetboellia cochinchinensis. The cultivated crops were susceptible only to MCMV and included cassava (Manihot esculenta), groundnut (Arachis hypogaea) and bean (Phaseolus vulgaris). Common weeds and cultivated crops growing close to maize in Uganda have differential susceptibility to MLN causing viruses and can act as reservoirs of MLN causing viruses. It is critical to identify non-MLN hosts in cultivated crops for crop rotation and early weeding to reduce on MLN virus inoculum in cropping syste