Case Study On NOL Essay examples -- Business Analysis Strategy

Introduction In November 1997, the acquisition of APL by NOL was successful. As compared to the larger US based 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 owned 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/APL 1) Agency Relationships There were separate management structures maintained in the group with the CEO 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) hire another person or persons) as decision making specialist to perform a service. In the modern corporation, managers must understand the links between these relationship and the firms effectiveness. The agency relationship between managers and their employees is important as this is related directly to how the firm’s 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 unit is driving for synergistic growth, developing and securing its links to Container Shipping Core competency Best in the world at moving and managing containerized trade, providing a lifeline for the global economy. APL Resources Tangible Technological State of the art information technology Intangible Reputational 150 years of shipping tradition Capabilities Provide worldwide coverage across all the major trade lanes. Industry-leading schedule reliability Human Resources Excellent customer service Core competency Seamless global connectivity