Case Study On NOL Essay examples -- Business Analysis Strategy

IntroductionIn November 1997, the acquisition of APL by NOL was successful. As compargond to the larger US base APL NOL was a small Singapore firm. Through this acquisition, it appeared that NOL was ready to become an industry leader in the shipping industry. Thus this acquisition is a strategy through which NOL buys a controlling, 100 per cent, interest in APL with the intent of making the acquired firm a subsidiary business within its portfolio. Thus APL became a wholly have subsidiary of Singapore based NOL, a global transportation and logistics company engaged in shipping and related businesses.Below is the study of the problems and strategies that NOL faced or is facing during the acquisition and integration of APL.Issues/Challenges facing NOL/APL1) Agency RelationshipsThere were separate management structures maintained in the group with the chief operating officer of NOL in Singapore and CEO in the United States reporting to the group CEO. This separation between owners and manager creates an agency relationship. This exist when one or more persons (the principal or principals) postulate another person or persons) as decision making specialist to perform a service. In the modern union, managers must understand the links betweenthese relationship and the firms effectiveness. The agency relationship between managers and their employees is important as this is related directly to how the firms strategies are implemented.This separation between ownership and managerial control in this instance can be problematic as the principal and the agents have different interests and goals. In a large publicly traded corporation such as NOL/APL, shareholders (principals) lack direct control when the CEOs (agents) make decisions t... ...el with its focus on yield, value-added services, high asset utilization and cost management In Terminals, we are focused on boosting productivity and capacity in areas targeted by our Container Shipping business. Our Logistics u nit is driving for synergistic growth, developing and securing its links to Container Shipping Core competence Best in the world at moving and managing containerized trade, providing a lifeline for the global economy. APLResourcesTangible TechnologicalState of the art information technology impalpable Reputational150 years of shipping tradition Capabilities Provide worldwide coverage across all the major trade lanes. Industry-leading schedule reliabilityHuman Resources small customer service Core competency Seamless global connectivity