Coursework 1 Report Dissertation Example | Topics and Well Written Essays - 2000 words

Coursework 1 Report - Dissertation Example The online access of products offered by the departmental stores has brought the consumers closer to the industry. The internet activities in context to the Japanese department store SOGO is one such example. The Japanese style department store is a preferred destination of consumers for style oriented products that are desired by the customers (Wordie 183). SOGO is a preferred destination and one-stop shopping centre for customers who could have the pleasure of shopping in an ideal environment. Leveraging on its brand name built over the years and the quality of its goods and services, the company has introduced internet based activities which created a change in the behaviour of the customers. Based on the emerging demands of their customers, SOGO has designed future strategies for implementation. The future strategies are inclusion of a wide range of customers through its services like internet based marketing which enable e-commerce for the consumers and also allows the company t o increase its customer base. Organisation Background SOGO is a Japanese style department store that includes Hong Kong and China as its major areas of operation. The company was founded by Japan’s SOGO. The style department store is currently owned by the Lifestyle International Holdings which is controlled by the billionaire brothers Joseph Lau and Thomas Lau of Hong Kong. Japan’s style department store SOGO started its operations in the Causeway Bay in 1985 but renovated its store to become JUMBO SOGO in 1993. The company increased its floor area and expanded its operations but in 2000, the company declared bankruptcy due to the burden of debt of $17bn. It was then that Japan’s SOGO was acquired by the Hong Kong based Lau brothers. The second department store was launched by the Hong Kong based group in 2005. Chow Tai Fook Enterprises which is owned by Cheng Yu-teng also has a controlling stake in the style department store. The SOGO Hong Kong departmental st ore is listed in the Hong Kong Stock Exchange since 2004. The products offered the style department store are customised to suit the style requirements of its customers. The products sold the department store includes men’ and women shoes of different styles and fashion, watches of different categories for men and women, branded watches of various style statements, cosmetics and fragrances for both men and women, lingerie and underwear, etc. The departmental store also sells several food items of different tastes. The food items include the flavors of different region. The food items include delicious and specialised Vietnamese dishes and Italian food items. SOGO also publishes a weekly new magazine in which its advertises its foods and accessory items, products of daily use, handbags, cosmetics and other necessary things of different styles required for daily use. The departmental store holds a comprehensive range of products and goods that are customised to meet the style o f different segments of the customers. In order to advertise and promote its products and to spread its customer base, SOGO style departmental stor

Valuation of Firms in Mergers and Acquisitions Case Study

Valuation of Firms in Mergers and Acquisitions - Case Study Example Triumph is of the opinion that acquisition of Rustic, a competitor in the same industry but with a radically different market share, would significantly boost its market penetration, enhance quality in production, and give it immense benefits with regard to economies of scale. As of present, Triumph has a predominantly southern customer base while Rustic has a chiefly northern customer base. The premise for this presumption is the view by Triumph’s CEO that Rustic is underperforming and its shares are undervalued. Hopes regarding the merger and acquisition soar high, with the expectations that the deal will grow the combined business establishment by up to 10%. However, the operating costs will rise by an estimated 5% in the first year. The financing option under consideration involves the issuance of long-term bonds to buy out shareholders at Rustic. The bonds will be issued at the current borrowing rate of the two companies. This report analyses the merger and acquisition ca se for Triumph and Rustic Plc.  The first two valuation cases are highly similar, with the only difference being that the first method assumes a constant dividend in perpetuity while the other DVM option assumes a constant dividend growth in perpetuity. The slight difference, however, makes a considerable difference in the estimated value of the resultant business, 41,000,000 and 90,420,000 respectively. The use of DVM in valuation model is most relevant in cases where the dividend pattern for a company is predictable and highly estimable (Bayrak, 2010). The management at both companies can make use of the method since both companies are currently paying dividends to their shareholders.