Defenses Against Takeover Bids – Anti Takeover Strategies

A firm having all or any of the following features may provide a temptation to an acquiring firm to take-over the former: The target firm has under performed other shares and the overall market in terms of return the shareholders in the preceding years. The target firm has been less profitable than other firms, and The promoter/owner group has lower shareholding in the target firm and the public has a higher portion. If an acquiring firm makes an offer for negotiated merger to the management of the target firm, it is up to the latter to accept or not to accept the offer. The target firm may not find the offer to be attractive and hence it may reject the offer. However, the acquiring firm may still persists with the idea either by making a tender offer or attempting a hostile take-over bid. In such a case, it is the Continue reading

What is Cryptography and Its Types?

Cryptography is defined as hiding the message to make it secret using scrambled codes. It allows the date to be changed into a code that is not legal for not permitted person and it needs to be converted back to its original message for it to become readable. Encryption and decryption are the process of cryptography. Encryption is when the readable text is converted into coded text while the decryption is where the coded text is converted into readable text. There are numerous types of cryptography but the symmetric and asymmetric key cryptography is the most used technique. 1. Symmetric-key Cryptography Symmetric-key Cryptography is also known as the private key cryptography. It is the oldest and well-known technique of cryptography. This method is simple which only requires each computer that has a code that will be encrypted by an encryption software into packets of data before it is sent across Continue reading

Reasons Behind the Financial Crisis of 2008

Financial crisis is a bubble created by excessive investor inclination towards a particular market. It shadows the valuations and when the bubble bursts, the investors want to exit and therefore rapidly start selling their stake. Too much of capital led to lower interest rates and this in return forced the investors to look for creative investment platforms where the yield was high. This requirement led to an unprecedented growth in the securitization market as the inclination towards such derivative instruments was high. Investors were willing to take higher risks as compared to the returns they would receive for their investments. Greed for higher returns, excessive leverage and low volatility led to the financial crisis of 2008. This low volatility which was a result of shadowed valuations led the borrowers to borrow over and above what their asset base allowed notwithstanding the criteria of credibility. 1. Low Volatility and High Leverage: Continue reading

Blockchain Technology – Advantages and Disadvantages

In 2017, a new form of currency and heated topic came to light, Bitcoin. Soon after its emergence, Bitcoin turned into the most invested in and discussed topic. It was considered to be a future form of digital currency. Investors and debaters understood the basics of how Bitcoin operated, however, the system behind Bitcoin was unclear. Bitcoin, alike many other cryptocurrencies, uses a system called Blockchain. What is Blockchain? How does Blockchain play a role in cryptocurrency? According to Bitcoin.org, “The block chain is a shared public ledger on which the entire Bitcoin network relies.” For example, imagine an iron chain full of square blocks, each block is bind by a transaction between two parties. The blocks are added one after another in chronological order. Within this block, information from both participants is contained. Once the transaction is made, it will be displayed for the public to view.  Blockchain plays a Continue reading

Terminology Management in Business

What is Terminology? In essence terminology is the binding definition of terms and wording in one or more languages which can theoretically explain anything including processes, products and concepts etc. Terminology is the study of terms and their use in one way or another whenever and wherever specialized information and knowledge are created, communicated, recorded, processed, transformed or re-used and so on. It is a structured set of terms and concepts in a particular subject field and it can be considered the infrastructure of specialized information. Terminology  Management Terminology management is the science of terms and definitions which is primarily concerned with manipulating terminological resources for specific purposes. Terms in terminology have exact definitions within the field, which is not necessarily the similar as their meaning in ordinary use. Without using proper terminology resources technical writing and technical documentation can be impossible. Literally terminology management is the core of an Continue reading

Four Important Types of Innovation

Innovation is defined as new ideas that work and a successful innovation can be achieved through the creation and implementation of new processes, products, services and methods of delivery which will result in significant improvements in the profitability and enhance the growth of an enterprise. An organization is considered innovative if it stirs up the marketplace, by creating competitive pressures and new opportunities. It has been recognized that innovation success in an established organization requires balancing the stabilized efficiency of the current market offerings and building new capabilities to create and develop offerings for unknown markets. There exist four types of changes to achieve strategic edge within an organization. Managers can use these four types of changes to achieve competitive advantage in the international environment. Each company can have maximum impact upon the chosen market through its own unique configuration of technology, product and services, strategy and structure, and culture Continue reading