scholarly journals Valuing Reciprocal Synergies in Merger and Acquisition Deals Using the Real Option Analysis

2020 ◽  
Vol 10 (2) ◽  
pp. 27
Author(s):  
Andrejs Čirjevskis

This research explores how global cosmetic players sense emerging market demand for new technologies and products, seize opportunities through the acquisition of core competencies that they needed, and transform their global value chain. The aim of this paper to assess the prerequisites of reciprocal synergies in merger and acquisition (M&A) deals pursuing global growth. To achieve this aim, the author asked a research question: what is the best way to measure the competence-based synergies as added market value in M&A deals? To answer this question, the author researched the latest theoretical findings on the antecedents of synergy in the merger and acquisition processes. The valuation of reciprocal synergies with real options was discussed with a focus on input variables’ values. Based on in-depth content analysis, the ARCTIC (A—Advantage, R—Relatedness, C—Complexity of Competence, T—Time of Integration, I—Implementation Plan, C—Cultural Fit) framework was developed and tested. The author selected three case studies to test the methodology empirically, namely, L’Oréal’s Body Shop acquisition in 2006 and divestiture in 2017, the acquisition of The Body Shop by Brazilian’s Natura Group in 2017, and the acquisition of Avon Products by Natura that was announced in 2019. The model for the valuation of reciprocal synergies used and discussed real options with a special focus on input variables’ values.

2018 ◽  
Vol 8 (1) ◽  
pp. 1
Author(s):  
Santi Rimadias ◽  
Farah Safira Rachmayanti

The purpose of this research was conducted to identify the effect of functional benefits, symbolic benefits, experiential benefits and customer satisfaction towards loyalty intention from the customer who use The Body Shop.With a high market demand on cosmetics nowadays, producers are required to compete to meet costumer's expectations. This research was a quantitative descriptive research. There were 153 respondents which were gathered by convenience sampling.The results showed that functional benefits, symbolic benefits and experiential benefits had a positive and significant affect toward customer satisfaction. Furthermore, this research also showed that customer satisfaction had a positive and significant effect on loyalty intention.Keywords: loyalty intention, customer satisfaction, symbolic benefits, functional benefits, experiential benefits.


Author(s):  
Paul Brooker ◽  
Margaret Hayward

The Armani high-fashion example illustrates the importance of adaptive rational methods in his founding and developing of an iconic high-fashion firm. Armani adapted stylistically to fashion’s new times in the 1970–80s by creating a new style catering for the career woman. His stylistic adaptation is compared with that of another famous Italian fashion designer, Versace, who instead modernized haute couture fashion and created a succession of glamourous styles. Both leaders exploited the same opportunity but in different ways. The third section compares these leaders’ legacies in the 1990s–2000s and assesses from a long-term perspective how capably they had used adaptive rational methods. The final section shifts the focus from fashion to the cosmetics industry and from Italy to the UK. Anita Roddick used adaptive rational methods to establish The Body Shop corporation in the 1970s–80s. However, she then abandoned rational methods with dire results for her corporation in the 1990s.


2021 ◽  
pp. 089443932110272
Author(s):  
Qinghong Yang ◽  
Zehong Shi ◽  
Yan Quan Liu

Are core competency requirements for relevant positions in the library shifting? Applying natural language processing techniques to understand the current market demand for core competencies, this study explores job advertisements issued by the American Library Association (ALA) from 2006 to 2017. Research reveals that the job demand continues to rise at a rate of 13% (2006–2017) and that the requirements for work experience are substantially extended, diversity of job titles becomes prevalent, and rich service experience and continuous lifelong learning skills are becoming more and more predominant for librarians. This analytical investigation informs the emerging demands in the American job market debriefing the prioritization and reprioritization of the current core competency requirements for ALA librarians.


Author(s):  
Bernardina Algieri ◽  
Arturo Leccadito

Abstract This study presents a set of integer-valued generalised autoregressive conditional heteroskedastic models to identify possible transmission channels of joint extreme price moves (coexceedances) across a group of agricultural commodities. These models are very useful to identify factors affecting joint tail events and they are superior in terms of goodness of fit to models without autoregressive components. Emerging market demand, crude oil, exchange rate, stock market conditions and credit spread explain extreme joint returns. Psychological factors and the Monday effect play a role in affecting extreme events, while weather anomalies (El Niño and La Niña episodes) do not have explanatory power.


Author(s):  
Destya Lisnaningrum ◽  
Sabihaini Sabihaini ◽  
Abdul Ghofar

This study determine the effect of green perceived value and green perceived risk on green repurchase intention mediated by green trust in customers of The Body Shop products in the Special Region of Yogykarta. The independent variables are green perceived value and green perceived risk. The dependent variable is a green repurchase intention. Green trust is a mediating variable. The population in this study are customers of The Body Shop products. Sample collection is done by area sampling techniques by grouping DIY into 5 groups, namely Bantul, Gunungkidul, Kota Yogyakarta, Kulon Progo, Sleman and the purposive sampling with the criteria of having made at least 2 purchases of The Body Shop products number of 150 respondents. The data analysis method used in this study is structural equation modeling (SEM). The results of this study are If consumers feel the benefits of a product towards the environment is high, it will increase trust and repurchase in the product. If consumers have a negative perception of a product that is high it will reduce trust and reduce interest in repurchasing the product. Consumer trust in products can mediate consumer ratings of the benefits received, negative perceptions and repurchase in the product.


2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Tuwisna Tuwisna

Tujuan dalam penelitian ini adalah untuk mengetahui pengaruh Brand exposure, Customer engagement dan Electronic Word of Mouth (e-Wom) terhadap kesadaran konsumen pada produk internasional The Body Shop Di Banda Aceh. Ukuran sampel penelitian ini sebanyak 96 responden. Data penelitian dikumpulkan melalui daftar pertanyaan/kuisioner dan studi dokumentasi. Pengujian hipotesis menggunakan analisis regresi linier berganda, uji F (serempak) dan uji t (parsial) dimaksud untuk mengetahui pengaruh variabel independen terhadap variabel dependen pada tingkat kepercayaan 95% (α = 0,05). Hasil penelitian menunjukan bahwa secara uji simultan antara variabel Brand exposure, Customer engagement dan Electronic Word of Mouth (e-Wom) berpengaruh terhadap kesadaran konsumen pada produk internasional The Body Shop Di Banda Aceh. Kemudian secara parsial Brand exposure dan Electronic Word of Mouth (e-Wom) berpengaruh terhadap kesadaran konsumen pada produk internasional The Body Shop Di Banda Aceh. Sedangkan Customer engagement tidak berpengaruh terhadap kesadaran konsumen pada produk internasional The Body Shop Di Banda Aceh


2020 ◽  
Vol 2 (2) ◽  
pp. 32-46
Author(s):  
Kathleen Mintarja ◽  
Priscilia Christian Kadim ◽  
Stella Claresta Alexander

The second half of the twentieth century witnessed unprecedented growth in the number of international actors. There has been a dramatic increase in the number of non-state actors that, on many occasions, helped solve problems and improve lives. This makes the responsibility of people’s welfare no longer only held by the government. One of the most prominent examples is the role of Body Shop on improving the living standard of Rwandan. Twenty four years after the genocide that killed almost 800,000 people, the country of Rwanda is rebuilding with the support of international communities, including multinational corporations. The Body Shop’s Community Trade commitment has been a key part of bringing local producers into international supply chains and empowering them. Therefore, the research question in this paper is “How is the role of The Body Shop on implementing fair trade principles towards the Rwandan society?” To answer the research question, the authors use several theories and concepts; such as pluralism, multinational companies, and fair trade theory. In addition, the research method to be used by the authors is a qualitative study method. This research found that The Body Shop has launched a Moringa Community Trade program as an embodiment of efforts to improve the welfare of Rwandan people after the genocide occurred. This community trade initiative aims to be one small step forward to achieve financial stability for the people currently living and working in Rwanda.


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