TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) Description
Case A of this series sets the scene for the largest merger and acquisition (M&A) deal in the telecom industry in Brazil and Latin America. Cases B to F follow on by relating the events up to the deal's conclusion. The sequencing of this story creates a sense of urgency for readers and forces them to take position on different questions at different times. Events began in 2003 when a 50:50 joint venture (JV) between Portugal Telecom (PT) and Spain's TelefA³nica acquired 60% of Vivo, the leading Brazilian mobile operator. In the subsequent years, Vivo experienced double-digit annual growth, as it reaped the benefits of its own heavy investments and booming consumer demand. In May 2010, TelefA³nica made a a‚¬5.7 billion cash bid for PT's share of the JV. According to TelefA³nica, this was a full, fair and final offer. How would PT's board regard the bid? On the one hand, it represented a 100% premium on Vivo's pre-announcement stock price. On the other hand, it was a terrible blow to the PT Group's international aspirations. Moreover, the occasionally conflicting views of the general public and the government had the potential to complicate matters further. Lastly, this deal also had important international implications. The case shows how: a) corporate governance practices vary across countries, including environments where there are dual-class shares; and b) the role of corporate governance in ensuring that managers undertake activities that maximize shareholder value as well as serving the needs and strategy of the company. The case also allows for an in-depth analysis of a variety of strategic, organizational, financial and economic issues related to growth strategies through JVs and M&As. The key focus of the case is on the links between finance and strategy.
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Case Analysis of TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B), is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Finance & Accounting Solutions
In the Texas Business School, TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Step 1 – Problem Identification of TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) - Harvard Business School Case Study
The first step to solve HBR TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Telefa Nica is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Telefa Nica, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B).
The external environment analysis of TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) case study. PESTEL analysis of " TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
To do comprehensive PESTEL analysis of case study – TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Government policies have significant impact on the business environment of any country. The firm in “ TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Telefa Nica is operating, firms are required to store customer data within the premises of the country. Telefa Nica needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Telefa Nica in case study TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Telefa Nica in case study “ TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Telefa Nica in case study “ TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Telefa Nica can compete against other competitors.
Government Scheme & Subsidies Impact on TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Telefa Nica needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Social Factors that Impact TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Technological Factors that Impact TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Environmental Factors that Impact TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Legal Factors that Impact TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B) case study. PESTEL analysis of " TELEFA“NICA'S BID FOR THE MOBILE MARKET IN BRAZIL (B)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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