Critical Social Work Theoretical Frameworks Social Work Essay Essay Example

Critical Social Work Theoretical Frameworks Social Work Essay Essay Introduction The essay shall research and analyze the theoretical underpinnings and cardinal elements of critical societal work. The history shall so depict appraisal in societal work pattern contexts and see how critical societal work theories like Marxism, Feminism, Radical Social work and Post Modernism have shaped pattern. A scope of values runing from personal, professional, institutional, organizational or bureau, political, spiritual and cultural necessarily characteristic and must be dealt with in pattern. Over and above this lies the societal justness, emancipatory docket vehicle by anti-oppressive attacks. Empathy is required and the societal worker must be in the clients places ( Egan, 1998 ) . Theoretical bases and attacks enable practicians to traverse societal divides and be with the client in a supportive manner in an accountable and ethical mode. Vast energy must be invested to chase away and dispute both the personal and the structural dominant forces of oppressive patterns. The writer shall try to show how theories have shaped the response approaches to serve bringing and contributed to professional pattern. Critical Social Work Theoretical Frameworks We will write a custom essay sample on Critical Social Work Theoretical Frameworks Social Work Essay specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Critical Social Work Theoretical Frameworks Social Work Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Critical Social Work Theoretical Frameworks Social Work Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The outgrowth of Socialism, Marxism, Liberalism and Conservativism shaped the emerging social professions at the bend of the 20th century wholly and reshaped the mode in which life was understood. How the societal, political, economic shaped that world became core in gestating world and the manner worlds reacted to the universe around them. In most instances socially constructed worlds could be explained through the stuff worlds if one was to look at the universe through a Marxist position. The 1960-70s reading of societal jobs, described as the rediscovery of poorness . Marxist rules understood the universe as socially divided by category, rendering some categories more susceptible to poverty than others as economically determined by holding no control of the agencies of production. Marxist theory locates category battle as a agency of righting this sort of socio-economic instability and the inequality The nucleus elements in this stage were manners of production and power, the eq uality that came with the bundle and the desire for alteration, societal alteration could merely be achieved through category battle. The human place could therefore be understood as driven and controlled by the external, in this instance the hapless as the laden group desired alteration. Social work s function involves working with people s lives, societal jobs centred on poorness and disadvantage and the nucleus concern involves set uping balance, societal stableness and societal justness. Intervention without disputing societal exclusion, inequality and poorness has proved to be deficient yet traditional societal work pathologised the person. At the early stages societal work was more about keeping public order and stamp downing civil agitation and category battle instead than acquiring down to the nucleus issues of poorness relief and disputing the beginnings and grounds for the differences that affected the people. Norms of behavior and life style for the people were determined by the eligibility standard as the beneficiary elements of philanthropic intercessions more than rights driven determiners. Extremist societal work emerged to instil that it was in fact a political activity. Social work should be about back uping those in demand, disputing inequality and societal alteration, non societal control covering with material worlds. With extremist societal work emerged the community component in societal work, witting raising attack, gradual incremental alteration in the procedure and oppositional activism. As the profession developed critical societal work begins to understand oppressive forces and work to retrace power instabilities ( Thompson, 2007 ; Dominelli, 1988 ; Braye and Preston-Shoot Extremist societal work had been excessively minimalistic and was criticised for over concentrating on category and paying no attending to other signifiers of inequalities. Bhatti- Sinclair ( 2011 ) argues that social workers remain committed to human rights, moralss and values and continuously seek a sharper apprehension of how to use theoretical constructs found in cosmopolitan human-centered rules, professional moralss and national jurisprudence, policy and process . ( twelve ) Inclusivity and citizenship are the chief marks in critical societal work pattern as opposed to sing people as corporate groups ( Glaister, 2008 ) . Anti-oppressive pattern thereby pursues societal justness and challenges pattern favoritism and subjugation bluffly. Battle with societal world must affect critiquing of societal systems and constructions, and set platforms for societal alteration and difference. The attack has an ethical committedness to societal justness by exposing inequalities and disputin g unequal power kineticss in society. The mode in which society maps has constructions that can either oppress or emancipate some societal groups. As the practician works, there is doubtless the challenge of professionally compliant. Social Work Practice Approaches Critical societal work pattern at all times engages with how other people on the other societal, cultural, spiritual divide are understood by us. Understanding diverseness and how personal positions and values are located must be a changeless brooding professional committedness. Personal or social perceptual experiences are shaped over clip or driven by historical and socio-political realities/environments must be understood. Where stereotypes have been shaped over clip in persons ; a professional operational base must be adopted. Braye, S A ; Preston-Shoot, M ( 2003 ) dispute hypocritical professionalism by reasoning that personal values and attitudes will ever be at that place, the issue is that they should non impact effectual service bringing. This is the bosom of critical societal work pattern ; being able to exceed the personal and being a professional. Social work can dispute or keep position quo and that societal workers are invested with power to care and command. In the context of what shall be discussed subsequently about appraisals, Braye A ; Preston-Shoot ( 2003 ) province that, Preparation for and reappraisal of pattern requires workers to understand themselves, their relationship with and impact on others, and their strengths and failings in relation to keeping a professional function ( 2003:135 ) . Respect is necessary both when working with service users and fellow co-workers. As explored in Thompson s theoretical account Personal computers, Social work must research the personal, cultural and structural dimensions of favoritism, and how these come together, and can be challenged in different ways ( Dominelli, 2009 ) . Social work must non reenforce subjugation, favoritism or any inequality. Social work can reenforce patriarchal and other oppressive systems and power dealingss. There are societal worlds that societal work either challenges reinforce, statistically cultural minority groups by and large experience higher rates of unemployment, live in poorer lodging, have poorer wellness, lower degrees of academic accomplishment, higher rates of exclusions from schools and are over-represented in prison statistics. Families who are from black and cultural minority groups are more likely to be referred to kids s societal work services, receive support services subsequently, and kids are more likely to travel into the attention system. There are other signifiers of bias, inequality and favoritism which can cross, and these can impact people in many different ways. In visible radiation of these nonsubjective worlds, what could be the drivers of such worlds? What thoughts are generated about the societal group and how could this impact on a practician s opinion when covering with an person from BME groups. The same applies when working with Unaccompanied Asylum Seeking Children, consciousness of professional duty and a societal justness attack when carry oning an age appraisal must be the pattern base. The Human rights and kid rights must be suitably accorded without favoritism. Another illustration is that of female parent blaming in a kid protection instances. Feminist theory has challenged this gendered attack to job work outing where the female is largely at the Centre of the job yet ignores the work forces from the societal causal matrix. As a consequence of critical societal work a displacement has developed where the whole domestic environment and people must be portion of the issue at manus. If all are non challenged this pattern reinforces the involvements of some groups over others and oppresses adult females. Assessment Procedure Middleton ( 1997 ) describes appraisal as portion of the planning docket affecting assemblage and construing information in order to understand a individual and their fortunes. It involves doing opinions based on information. ( Middleton, 1997:5 ) . The procedure here involves regard for the person s values, their nucleus individuality and opinions are made without being judgemental. Selective and stereotyped considerations must be avoided, labelling and categorizing people and overlooking their individualism and can let elements of favoritism to pervade the procedure which must otherwise non be affected by single values and positions. As argued by Clifford ( 1998 ) it is of import that societal workers check their single prejudices and guarantee that these do non impact the mode in which they undertake appraisals. In direct nexus with critical societal work, appraisals must be informed by critical theory to heighten a balanced, merely and anti-oppressive appraisal procedure. Personal positions held by the societal worker must non busy any infinite in the appraisal procedure for the interest of justness, just entree to services anti-discriminatory pattern. Parker and Bradley ( 2005 ) argue that a balanced attack of an assessment involves wisdom, accomplishments, grasp of diverseness and consistently applied cognition in direct pattern. Service users must experience that they benefit from the appraisal procedure for it to be effectual ( Addock, 2001 ) and the societal worker and household members must jointly lend to the procedure. This engagement enriches the procedure and eliminates subjective attacks to the appraisal. Social work pattern and critical attacks intersect ; the worker must be witting of their personal beliefs and values and strike a responsible, ethical and professional balance in the mode the appraisal and intercession is conducted and be honest and expressed with service users. ( Parker A ; Bradley, 2005: 7 ) . Extensive cognition of the service user s environmental and living systems and the wider systems that impinge on them must be cardinal determiners in appraisals ( Parker A ; Bradley 2005:13 ) .Service user engagement is authorising and demonstrates citizenship and self driven duty as human worth. Understanding power kineticss in appraisals Power dealingss inherent in the societal work procedure must be carefully managed and guarantee a balanced contributory attack whereby an exchange theoretical account would can follow to admit that the service users are experts of their state of affairss. Service users and societal workers exchange thoughts, information and ways forward to do a difference and happen alternate ways of nearing as corporate spouses ( Parker A ; Bradley, 2005:14 ) . In footings of accomplishments this involves actively listening to service users being available for them, a professional and non-judgemental or non directing attack, consecutive and honorable talk and societal justness chase. ( Parker A ; Bradley, 2005 ) . Child centred appraisals must be informed by kid development theories, ecological attacks, guaranting equality of chance, engagement of households and an interagency attack ensures corporate originative intercessions. When working with unaccompanied refuge seeking kids for illustration, Culturegrams aid in analyzing the impact of civilization in the lives of those persons and households being assessed ( Parker A ; Bradley, 2005:50-53 ) . This can be really utile when working with BME groups every bit good as refugees and refuge searchers in a broader context. Valuess of the households and persons are explored and these aid determine the nature of the intercession where the single shapes the class of the intercession as opposed to it being driven by the powerful professionals. Multiculturalism and societal work Multiculturalism is a twenty-first Century challenge as citizenship acknowledgment and integrating a modern society feature. Critical multiculturalism suggests that societal workers need to intellectually prosecute with the issues of difference and citizenship, in a mode that detaches pattern from monoculturalist norms ( Powell, 2001:146 ) . Social workers are practically challenged to interrogate the value premises of their attack and assess rules and values they use in pattern. If societal workers are to avoid narrative repression, they need to be capable of disputing dianoetic hierarchies of intending in their pattern . ( Powell, 2001:146 ) . This becomes the automatic constituent in the intercession. This involves disputing the really systems that they use and anteroom for the alteration in structural elements that could be suppressing the really people they would be working with. Feminist societal work engages in righting gender inequalities, this could be the female parent faulting attitude that it challenges. Critical societal work engages a demand for consciousness by practicians, a transmutation of cultural attitudes around race dealingss, homosexual rights and the relationship between gender, civilization and power and of the demand for anti-discriminatory pattern ( Powell, 2001:149 ) . In order to run into the professional demands of the profession, societal workers must seek counsel and shut the spread between personal values and professional pattern. This must do changeless mention to human rights, equality, favoritism and racism ( Bhatti- Sinclair, 2011 ) . Fook ( 2000 ) argues that adept critical societal workers are able to make critical cognition which challenges and resists all signifiers of domination. Anti-racist pattern Dominelli ( 2008 ) points out that anti-racist pattern beyond that presented in Thompson s ( 2007 ) PCS theoretical account by underscoring on its interactive nature. For Dominelli ( 2008 ) racism is a multidimensional signifier of subjugation over and above favoritism Institutional and Cultural racism are structurally associated and viewed as less immorality than the personal racism which society scowls upon, yet the is no better racism. If practicians manus over duty of BME issues to BME staff this may be debatable as it may ensue in a deficiency of duty by white societal workers to anti-racist pattern and reinforce difference. Institutional patterns must be professionally compliant ( Bhatti- Sinclair, 2011:128 ) at their ain degree. Treatment of black families/children hits them every twenty-four hours and there are challenges that the societal workers have to cover with in the face of these ingrained stereotyped positions of the good white household and the bad black household. Dominelli ( 2008 ) argues that challenging how white people perceive black households is merely possible within positive swearing relationships. Mobile colonists fall into the same class where as the minority cultural groups where stereotyped premises exist that can act upon the societal work procedure. To work with persons on the autistic spectrum requires cognition and apprehension of autism. Knowledge of the status s features, the basic apprehension of the three of damages is necessary for usage in the societal work procedure. The persons must non be viewed as unwilling to prosecute due their limited societal interaction accomplishments but must be understood and appropriate communicating systems used. For illustration, alternatively of speaking through an appraisal ; image boards, games of their involvement, familiar environments and utilizing their preferable manner of communicating would assist to affect them, prosecute them and take a possible stereotyped position that they can non do determinations. If this procedure does non affect them, the likeliness is that anti-oppressive pattern would hold been failed. Good pattern recognises individualism and this permeates through the societal work procedure. Assessment procedure in pattern The writer s work experience with a 40 twelvemonth old autistic adult male in Coventry stands as a alone illustration of the complexness of service user engagement and creativeness aimed at raising the degree of positive results in reexamining a attention program. The lone established entree point for his parts was when he was off from place, on the coach. During any travel by coach, he livened up and opened up, expressed his positions about the service he was having and it was the best clip to measure the support attention program, colloquially in a coach. Working around the person s universe helped the societal attention supplier to make out to the really of import demands that an office based appraisal could non accomplish. The coach environment had no powerful/powerless unequal binary moral force in it. It was his comfort zone. Failure to recognize single likes, compulsions and centripetal issues in autistic persons can impede the societal work procedure. Effective appraisals can merely be accomplishable when the service user is located at the Centre of the procedure by usage of attacks that promote societal alteration and justness. Challenging favoritism in pattern Childs are frequently described as vulnerable, guiltless, in demand of protection and missing experience. If non carefully approached the kid may be sidelined from the appraisal procedure and overshadowed by grownup thoughts. If it is about abuse in the place, it is the kid s experience and non the grownup s experience that must take precedency with the kid as the expert. The Scating Report emphasised the demand to see the universe through the eyes of the kid . The function of the societal worker in pattern is to dispute favoritism, exclusion of socially excluded groups like kids. Childs have been looked at as topics and the critical attack locates them as able to determine and voice. Failure to recognize kids and the societal worker s comparatively powerful place practicians reinforce subjugation. The critical practician engages service users to ease the relation of their narratives in the appraisal procedure. Law is used to counter oppressive pattern and sets out operational parametric quantities for professionals to cover with racism and be cognizant that favoritism is improper ( Race dealingss Act 1976 A ; Equality Act 2006, Bhatti- Sinclair, 2011 ) .To overcome the pattern challenge, societal workers have looked up to anti-racist advocators for counsel on methods and theoretical accounts which respond ethically, efficaciously and expeditiously to day-to-day challenges and quandary ( Bhatti- Sinclair, 2011 ) . Training and bing regulative organic structures like the HCPC enable pattern to be justness based by necessitating professionalism by the work force through conformity and counsel. The Professional capablenesss Framework requires the worker to Recognise and pull off the impact on people of the power invested in your function ( PCF 33 ) and criterions of proficiency calls on the demand to recognise the power kineticss in relationships with service users and carers and be able to pull off those kineticss suitably ( SoPS 2.8 ) . Formalised appraisals assistance in shooting consistence Crisp et Al ( 2005 ) argues that the absence of a formalistic appraisal model consequences in subjective appraisals. Professionally trained and skilled workers heighten a just appraisal. Appraisals must non merely look at behavior, but besides the cause of the behavior in a holistic manner in order to do right opinions and this is achieved through service user engagement in the procedure. Milner A ; Byr ne, ( 2002 ) posit that the appraisal there is demand for mapping before be aftering the appraisal journey. This involves cognizing the kid, prosecuting them and pulling their strengths in order to determine appropriate support ( Dominelli A ; Payne, 2002 ) . Engagement Effective anti-racist, anti-oppressive pattern must be drawn from pattern intelligence, applied research and service users involvement. Empowering pattern has an engagement and integrating constituent as opposed to exclusion pattern attacks by deficiency of appropriate linguistic communication and civilization consciousness ( Bhatti- Sinclair, 2011 ) .Structurally, good planned and coordinated appraisals and intercessions involve the service user and must react sensitively to their demands. Awareness of our ain biass and past experiences and thoughts must be non-threatening to clients ( Lindsay, 2010 ) .Interactive polarization between the societal worker and client can sabotage societal work effectiveness whereupon households and persons are pathologised either as unapproachable or immune. Positive communicating enhances the relationship edifice ( Kaprowska 2010:5 ) which is the key to an accurate appraisal. Persons with disablements frequently argue that societal workers appraisals of them emphasise more on damage and less on being seen as human, alternatively appraisals must research their single abilities. In add-on when working with persons who use minority linguistic communications it can go a barrier for an accurate appraisal hence the demand to be after appraisals for these persons with full consciousness of this cardinal communicating component in order to guarantee the service user s engagement. This could be necessitated by transcribers or minority linguistic communication talking societal workers. Similarly, when working with the aged, appraisals must observe abilities and non reenforce ageist stereotypes, shared power and agreed way rule. Decision The construct of critical pattern locates the societal worker as an active participant in a procedure of construing and understanding relationships and communicating that must cut across difference. Over and above premises, biass, personal beliefs, structural models ; the critical practician must be automatic and engaged in an empowering manner whilst being cognizant of personal and socio-cultural beginnings and belief systems and disputing all signifiers of subjugation. Appropriate accomplishments and knowledge must be incorporated for the societal work procedure to be effectual.

Concept Of Marriage Under Muslim Law Religion Essay Essays

Concept Of Marriage Under Muslim Law Religion Essay Essays Concept Of Marriage Under Muslim Law Religion Essay Essay Concept Of Marriage Under Muslim Law Religion Essay Essay The research worker has adopted a doctrinal signifier of research to make his undertaking. The undertaking entails the research worker to analyse the construct of matrimony under Muslim jurisprudence. Assorted beginnings both primary and secondary beginnings have been consulted for the same. No portion of this undertaking is plagiarized and the undertaking is the original work of the research worker. Introduction To what extent is sharia a fixed set of norms that apply to all Muslims? Many assume that Islamic law regulations can merely be found either by reading the Quran, or by listening to the sentiment of any Muslim priest. They besides assume that all Muslims are bound by the same regulations, and that Islamic law regulations can thusbe enforced across national boundary lines to all Muslims every bit, in the MiddleEast, Africa, Asia, and Europe. But is this correct? And if non, what so is the right apprehension of Islamic laws? When people refer to the Islamic law, they are, in fact, mentioning to their Islamic laws in the name of the ageless will of the Almighty God. The assortment of significances of Islamic law has given rise to a flexible, multi-interpretable discourse about Islamic law and jurisprudence which moves swimmingly from one significance of Islamic law to another. Marriage or Nikah in Islamic jurisprudence is a contract pure and simple necessitating no authorship and no frightened rites. All that is necessary is offer and credence made in the presence and hearing of two male or female informants and entering the factum of matrimony in the Nikah Register maintained in every mosque signed by the parties and attested by informants. It is collectible to the married woman on the disintegration of matrimony or decease or divorce. In India, there is no demand to register the Muslim matrimony, as there is no jurisprudence necessitating enrollment. I am thankful to Dr.Vijender Kumar to give me this valuable chance to make a undertaking on The Concept of Marriage under Muslim Law . We have seen, it is the household jurisprudence that has ever represented the really bosom of the Sharia, for it is this portion of the jurisprudence that is regarded by the Muslims as come ining into the really warp and weft of their faith. By and large talking, in the jurisprudence of the household entirely that the Sharia is still applied to some four hundred million Muslims, for it is virtually merely in the Arabian Peninsula, Afghanistan, Northern Nigeria that the Sharia is applied today, as such, outside the domain of household dealingss and personal position. It is exactly in respects to the jurisprudence of matrimony and divorce that the conflict is joined today between the forces of conservativism and and advancement in the Muslim universe, and the vicissitudes of that conflict provide, as we have seen, a gage of societal advancement, a mirror of the progress of modernism in Islam, and an illustration of how a nominally changeless jurisprudence can be changed in pattern. Let us get down so with a drumhead statement of Islamic jurisprudence in these affairs. A Muslim adult female is bound to monogamy, while a Muslim adult male may hold every bit many as four married womans at one time, but no more. In add-on, the Ithna Ashari subdivision of the Shia, entirely, allows him to hold any figure impermanent matrimonies, or matrimony of enjoyment, while all schools allow a adult male to indulge rights of concubinage with his ain female slaves. Any sexual intercourse outside these bounds[ 1 ]constitute zina, or illicit sex dealingss, for which the penalty is decease by lapidating in the instance of an wrongdoer who has of all time consummated a lawful matrimony, and one hundred ciliums in the instance of others. But these punishments can rarely be decently imposed because of the extremely demanding criterion of cogent evidence required, and the rule that such penalties are averted by any circumstance of doubt-besides the fact that Islamic condemnable jurisp rudence has today merely a really limited application. In add-on a Muslim hubby may disown his married woman or married womans at any clip and at his one-sided discretion. So much for a really general sum-up. It is indispensable, nevertheless, foremost to see this against its historical background and so lucubrate it in greater item. Marriages in Islam Islam, unlike other faiths is a strong advocator of matrimony. There is no topographic point for celibacy like, for illustration the Roman Catholic priests and nuns. The prophesier ( pbuh ) has said there is no celibacy in Islam. Marriage is a spiritual responsibility and is accordingly a moral precaution every bit good as a societal necessity. Islam does non equal celibacy with high taqwa / Iman . The prophesier has besides said, Marriage is my tradition who so of all time keeps off there from is non from amongst me . Marriage acts as an mercantile establishment for sexual demands and modulate it so one does non go a slave to his/ her desires. It is a societal necessity because through matrimony, households are established and the household is the cardinal unit of our society. Furthermore, matrimony is the lone legitimate or halal manner to indulge in familiarity between a adult male and a adult female. Islam takes a center of the route place to sexual dealingss, it neither condemns it like certain faiths, nor does it let it freely. Islam urges us to command and modulate our desires, whatever they may be so that we remain dignified and non go like animate beings. Historical Background In pre-Islamic Arabia, it seems, there were several types of matrimony, runing likely from the patrilineal and including the alleged matrimony of impermanent enjoyment. The most respectable signifier, nevertheless, was a patrilinear matrimony in which the groom paid a dowry for, or to, his bride. This has developed no uncertainty, out of the widespread usage of paying bride-wealth to the folk or the household of the bride for the loss of her generative capacity and as a stabilisation both of the brotherhood and of the relation between two households ; but it would look that even before the the coming of Islam the dowry had come to be regarded in Arabia as decently belonging to the bride herself. In any instance this is a feature of the Islamic jurisprudence of matrimony, nevertheless much it is still disregarded in pattern in some quarters. Muslim legal experts frequently in fact employ the simile of sale, and see the dowry as consideration for matrimonial rights-a consideration that constitutes an indispensable component in every Muslim matrimony. Nor is this dowry repayable on divorce, in Islamic jurisprudence, one time the matrimony has been consummated, even where the married woman is chiefly at mistake, except by her ain voluntary understanding. Hanafis, on the other manus, see that an grownup adult female may contract herself in matrimony provided she chooses a hubby who is her equal in regard of household, trade, faith, and so forth ; that merely bush leagues may be given in matrimony without their consent ; and that even bush leagues have an option of disowning such a matrimony when they reach bulk I all instances in which the defender who acted for them was other than male parent or gramps.[ 2 ]The other Sunni schools exclude matrimony by irresistible impulse by any except the male parent or male parent s male parent ( or, in the instance of the Malikis, the male parent or male parent or his executor ) ; but they extend such irresistible impulse, in regard of virgins girls, far beyond bulk. In add-on, a adult male is prohibited from being married, at one and the same clip, to two adult females who would be debarred, were one of them a male, from get marrieding each other ;[ 3 ] An Overview of Concept of Marriage in Muslim Law Islam, unlike other faiths is a strong advocator of matrimony. There is no topographic point of celibacy in Islam like the Roman Catholic priests A ; nuns. The Prophet has said There is no Celibacy in Islam . Marriage acts as an mercantile establishment for sexual demands A ; regulates it so one does nt go break ones back to his/her desires. It is a societal demand because through matrimony, households are established and the households are the cardinal entity of our society. Furthermore matrimony is the lone legitimate or halal manner to indulge in familiarity between a adult male and adult female. Islamic matrimony although licenses polygamy but it wholly prohibits polyandry. Polygamy though permitted was guarded by several conditions by Prophet but these conditions are non obeyed by the Muslims in toto. Marriage: -Pre Islamic Position Before the birth of Islam there were several traditions in Arab. These traditions were holding several unethical procedures like: ( I ) Buying of miss from parents by paying a amount of money. ( two ) Temporary matrimonies. ( three ) Marriage with two existent sisters at the same time. ( four ) Freeness of giving up and once more accepting adult females. These unethical traditions of the society needed to be abolished ; Islam did it and brought a drastic alteration in the construct of matrimony. Marriage Defined It is quiet relevant to cognize whether the Muslim matrimony is a sacrament like the Hindu matrimony, for this Lashkar-e-Taiba us acquire acquainted with some of the definitions of Muslim matrimony. ( a ) A Hedaya[ 4 ]: Marriage is a legal procedure by which the several procedure and reproduction and legitimation of kids between adult male and adult females is absolutely lawful and valid. ( B ) A Bailies Digest[ 5 ]: A Nikah in Arabic means Union of the series and carries a civil contract for the intents of legalising sexual intercourse and legitimate reproduction of kids. ( degree Celsius ) A Ameer AliA[ 6 ]: Marriage is an organisation for the protection of the society. This is made to protect the society from foulness and unchestity. ( vitamin D ) A Abdur Rahim[ 7 ]: The Mahomedan priests regard the establishment of matrimony as par taking both the nature of Ibadat or devotional humanistic disciplines and Muamlat or traffics among work forces. ( vitamin E ) A Mahmood J.[ 8 ]: Marriage harmonizing to the Mahomedan jurisprudence is non a sacrament but a civil contract. ( degree Fahrenheit ) Under Section 2 of Muslim Women ( Protection of Rights on Divorce ) Act, 1986 Marriage or Nikah among Muslims is a Solemn Pact or Mithaq-e-ghalid between a adult male A ; a adult female beging each others life company, which in jurisprudence takes the signifier of a contract or aqd. It s a affair of question still bing whether Muslim matrimony is merely a civil contract or an Ibadat A ; Muamlat. While unleashing the assorted definitions it s rather a large job to state which 1 is the most appropriate, in my sentiment although the necessities of a contract is fulfilled yet matrimony can neer be said to be a contract because matrimony ever creates a bondage between the emotions and thought of two individual. .J Sarsah Sulaiman[ 9 ]has said In Islam, matrimony is non merely a civil contract but besides a sacrament. Muslim matrimony can besides be differentiated from a civil contract on the footing of following points: ( a ) It can non be done on the footing of future occurrences unlike the contingent contracts. ( B ) Unlike the civil contract it can non be done for a fixed period of clip. ( Muta Marriage being an exclusion. ) Purpose of Marriage The word Zawj is used in the Quran to intend a brace or a mate. The general intent of matrimony is that the sexes can supply company to one another, procreate legitimate kids A ; unrecorded in peace A ; repose to the commandments of Allah. Marriage serves as a mean to emotional amp ; sexual satisfaction and as a mean of tenseness decrease. Marriage compulsory or non? Harmonizing to Imams Abu Hanifa, Ahmad ibn Hanbal A ; Malik ibn Anas, matrimony in Islam is recommendatory, nevertheless in certain persons it becomes Wajib or obligatory. Imam Shafi considers it to Nafl or Mubah ( preferred ) . The general sentiment is that if a individual, male or female frights that if he/she does non get married they will perpetrate fornication, so matrimony becomes Wajib . However, one should non get married if he does non possess the agencies to keep a married woman and future household or if he has no sex thrust or if dislikes kids, or if he feels matrimony will earnestly impact his spiritual duties. Prophet said: When a adult male marries he has fulfilled half of his faith, so allow him fear Allah sing the staying half. This really diction of Prophet marks the importance of matrimony, therefore it could be good concluded that matrimony in Islam is must. Capacity for Marriage The general necessities for matrimony under Islam are as follows: ( I ) Every Mahomedan of sound head and holding attained pubescence can get married. Where there is no cogent evidence or grounds of pubescence the age of pubescence is 15 old ages. ( two ) A minor and insane ( moonstruck ) who have non attained pubescence can be validly contracted in matrimony by their several defenders. ( three ) Consent of party is must. A matrimony of a Mahomedan who is of sound head and has attained pubescence, is null, if there is no consent. Requirements of Muslim Nikah The celebration of a Muslim matrimony requires attachment to certain signifiers and expressions. They are called the necessities of a valid matrimony. If any of these demands is non fulfilled the matrimony becomes either nothingness or irregular, as the instance may be. The necessities are as follows: Proposal and Acceptance Competent Parties No legal Disability Absolute Prohibition There is absolute prohibition of matrimony in instance or relationship of blood kinship which means the relationship of the individual through his/her male parent or female parent on the ascending side, or through his or her ain on the descending side. Marriage among the individuals related by affinity, Internet Explorer, through the married woman is non permitted. Marriage with surrogate female parent and other related through such surrogate female parent is besides null. Relative Prohibitions: Improper concurrence Marrying a 5th married woman Marrying a adult female undergoing iddat Marrying non-Muslim Absence of proper informants Woman undertaking a 2nd matrimony during the subsistence of the first matrimony. The undermentioned matrimonies are besides prohibited: Marrying pregnant adult females Marrying ain divorced married woman Marrying during pilgrims journey Necessities of Marriage The necessities of a valid matrimony are as follows: ( I ) There should be a proposal made by or on behalf of one of the parties to the matrimony, and an credence of the proposal by or on behalf of the other party. ( two ) The proposal and credence must both be expressed at one time meeting. ( three ) The parties must be competent. ( four ) There must be two male or one male A ; two female informants, who must be sane and big Mahomedan nowadays A ; hearing during the matrimony proposal and credence. ( Not needed in Shia Law ) ( V ) Neither composing nor any spiritual ceremonial is needed. Necessities Explored ( I ) A Muslim matrimony requires proposal Ijab from one party and credence Qubul from the other side. This must be done in one posing. ( two ) The credence must be matching to what is being offered. ( three ) The matrimony must be efficaciously immediate. If the Wali says I will get married her to you after two months , there is no matrimony. ( four ) The two parties must be lawfully competent ; i.e. they must be sane and grownup. ( V ) The adult females must non be from the out category. ( six ) The consent given must be free consent, . It must non be an result of irresistible impulse, duess, coercion or undue influence. Kinds of Marriage Under Muslim by and large two types of matrimony is recognizedA ( I ) Regular Marriage ( necessities discussed earlier ) ( two ) Muta matrimony Muta Marriage: Muta matrimony is a impermanent matrimony. Muta matrimony is recognized in Shia merely. Sunni jurisprudence does nt acknowledge it. ( Baillie, 18 ) . A Shia of the male sex may contract a Muta matrimony with a adult female professing the Mahomedan, Christian or Jewish faith, or even with a adult female who is a fire believer but non with any adult female following any other faith. But a Shia adult female can non contract a Muta matrimony with a non Muslim. The necessities of Muta matrimony are: ( 1 ) The period of cohabitation should be fixed. ( 2 ) Dower should be fixed. ( 3 ) If dowry specified, term non specified, it could amount to permanent or regular matrimony. ( 4 ) If term fixed dower non specified, it amounts to invalidate matrimony. Aspects of Marriage ( I ) Valid or Sahih ( two ) Irregular or Fasid ( three ) Void or Batil ( I ) Valid or Sahih Marriage: -A Under the Muslim jurisprudence, a valid matrimony is that which has been constituted in conformity with the indispensable conditioned prescribed earlier. It confers upon the married woman ; the right of dowry, care and abode, imposes on her duty to be faithful and obedient to her hubby, admit sexual intercourse with him A ; observe Iddat. ( two ) Irregular or Fasid Marriage: A Those matrimonies which are result of failures on portion of parties in non fulfilment of requirements but so besides are matrimonies ; to be terminated by one of he party is termed to be Irregular matrimonies. They are outcome of- ( a ) A matrimony without informant ( Not under Shia Law ) ( B ) Marriage with 5th married woman. ( degree Celsius ) Marriage with a adult females undergoing Iddat. ( vitamin D ) Marriage with a fire-worshipper. ( vitamin E ) Marriage result of saloon of improper concurrence. An irregular matrimony has no legal consequence before consummation but when consummated give rise to several rights A ; duties. ( three ) Void or Batil Marriage: A matrimony which is improper from it s get downing. It does non make any civil rights or duties between the parties. The progeny of a null matrimony is illicit. They are outcome of- ( a ) Marriage through forced consent. ( B ) Plurality of hubby. ( degree Celsius ) Marriage prohibited on the land of blood kinship. ( vitamin D ) Marriage prohibited on the land of affinity. ( vitamin E ) Marriage prohibited on the land of fostering. Consequence of Marriage ( Sahih ) The lawful duties which arise after matrimony are as follows- ( I ) Mutual intercourse legalized and the kids so born are legitimate. ( two ) The married woman gets power to acquire Mahr ( three ) The married woman entitles to acquire care. ( four ) The hubby gets right to steer and forbid the married woman s motion ( for valid grounds merely ) ( V ) Right of sequence develops. ( six ) Prohibition of matrimony due to affinity. ( seven ) Women edge to finish Iddat period A ; non to get married during Iddat period ; after divorce or decease of hubby. The ob ligations and rights set between the two parties during and after the matrimony are to be enforced till legality. On the footing of a matrimony hubby and married woman do non acquire the right on one another s belongings. THE MARRIAGE CEREMONY: 1. Battle or Mangni: Does non measure up the hereafter spouses to travel out together, even if the parents consent. Man and adult female become allowable for each other merely after the public presentation of Nikah. 2. Dowry: The unislamic system of demanding and accepting dowery must be avoided at all costs. Shariah does non do any expense officeholder on the bride/bride s parents. Even the matrimony disbursals, it is recommended to be borne by the bridegroom. However, the bride can convey whatever she wants of her free will, and it will ever belong to her. 3. Other Unislamic Customss: Many other unislamic imposts have crept into the matrimony ceremonial of some Muslims. These imposts are either borrowed from non-Muslim civilizations or go on because they are established in past coevalss. One must avoid them if they are against the Shariah, even if some people are displeased. Other imposts like the breakage of coconut etc. besides do non have among the Islamic rites. All actions, imposts etc. , which show discourtesy to Islam or weaken the importance of Islam, have to be avoided. 4. Haraam Acts: Some of the rites in matrimony ceremonials are perfectly Haraam like the playing of music. It is besides Haraam for ladies to travel for assorted assemblages without proper Hijab. Such things invite godly wrath and take away the approvals of this auspicious juncture. In the Islamic Law, matrimony is an Aqd, a contract. The constituents of this contract are as follows: A. Proposal: In Islam the procedure of proposal by a adult male to a adult female for her manus in matrimony, or for that affair, to her household, is encouraged. Islam considers this natural, and recommends it as an act of reputability and self-respect for adult females. B. Mahr: And the intending hubby is asked to offer a Mahr to the bride. Holy Quran says, And give adult females their Mahr as a free gift, but if they of themselves be pleased to give up to you a part of it, so eat it with enjoyment and with wholesome consequence. ( Surah Nisa 4:4 ) The undermentioned points are worthy of consideration: a ) Mahr must be agreed upon by the get marrieding spouses themselves, non by parents. B ) Mahr is her right, to which her hubby remains indebted. degree Celsius ) It is a free gift and non her monetary value. The Mahr may be hard currency, sort or non-material ( like preparation or learning something ) . It can be paid up front or can be in signifier of promise to pay upon demands decided prior to the celebration of matrimony. Moajjal ( immediate ) , Muwajjal and Indat-talab ( on demand ) . However, it is much recommended to pay it before or at the clip of Nikah itself. C. The Nikah Ceremony: Harmonizing to Shariah, the wife-to-be says, An Kahtu nafsaka alal mahril maloom . ( I have given away myself in Nikah to you, on the agreed Mahr. ) .Immediately, the adult male ( bridegroom ) says, Qabiltun Nikaha . ( I have accepted the Nikah. ) .With these dictums, they become hubby and married woman. If the marrying spouses are non able to declaim the expression in Arabic, one or two individuals or priests are appointed and authorized to officiate. One who represents the bride would foremost seek her expressed consent to officiate on her behalf, and so would the other who acts on behalf of the groom. Naturally, there would be a little fluctuation in the dictums, because the individuals declaiming them are appointees. A individual who represents the bride would originate by stating, Ankahtu muwakkilati muwakkilaka alal mahril maloom. ( I give off in Nikah the adult female who has therefore appointed and authorized me, to the adult male who has authorized you, on an in agreement Mahr. ) The groom s representative would react, Qabiltunnikaaha limuwakkili alal mahril maloom. ( I accept the Nikah on behalf of the 1 who has appointed me, on the agreed Mahr. ) It is mustahab to declaim a brief discourse or Khutba before the Nikah expression is enunciated. In this Khutba, Allah is praised for His Wisdom in modulating the lawful procedure of reproduction, and so the traditions from Holy Prophet Muhammad ( s.a.w. ) are besides recited. D. Time of Marriage Ceremony: Though fundamentally matrimony is allowed at all times, there are some yearss on which matrimony is non recommended ; some of these are based on ahadith and some on cultural, historical reasons.Generally, we can categorise these yearss into three: ( a ) There are some ahadith which say that it is makruh ( non recommended ) to hold a matrimony ceremonial on the yearss when the Moon is in the configuration of Scorpio ( this is known as al-qamar fil aqrab or qamar dar aqrab ) , during the last two or three yearss of the lunar months, and on Wednesdays. ( B ) There are certain yearss of the Islamic calendar, which have become associated with the early events of the Islamic history ; for illustration, the 10th of Muharram is the twenty-four hours of mourning for the slaughter at Karbala or the twenty-four hours of Holy Prophet Muhammad s ( s.a.w. ) decease in Safar, etc. Since such yearss are commemorated by the Muslims as yearss of bereavement, it is sociall y and, to some extent, sacredly non recommended to hold a matrimony ceremonial on such yearss. Shia Ithna Ashari ( Twelver Shias ) , particularly in India and Pakistan, seldom perform matrimony ceremonial between the 1st of Muharram and the 8th of Rabi al-Awwal as this period includes the bereavement yearss of Muharram culminating in the martyrdom of Imam Askari ( a.s. ) . The 9th Rabi al-Awwal is celebrated as Eid-e-Zahra..If there is a demand, nevertheless, Nikah, can be performed at any clip. E. Permission of the Bride-to-be/Father: The miss s consent is necessary and has to be taken by her representative, straight. In instance of a virgin/spinster the male parent s or the gramps s permission is besides necessary. However if the permission is unreasonably withheld under some conditions or the miss has no father/paternal gramps it is non necessary. However, a adult female who is non a virgin, does non necessitate any permission in instance of remarriage. Decision Marriage is a spiritual responsibility of every Muslim and it is considered to be a moral precaution and a societal demand. The Prophet has besides said Marriage is my tradition whosoever keeps off there from is non from amongst me. Holy Quran says: And marry those among you who are individual and those who are fit among your male slaves and your female slaves ; if they are destitute, Allah will do them free from want out of His grace ; and Allah is Ample-giving, Knowing. ( Surah Nur 24:32 ) .The above ayat begins with the words Wa Ankehoo ( And get married ) The imperative signifier of the word nikah implies that either it is obligatory or extremely recommended. Harmonizing to bookmans, though matrimony is a extremely recommended act, it becomes obligatory when there is a opportunity of falling into sin.Holy Prophet Muhammad ( s.a.w. ) says, No house has been built in Islam more beloved in the sight of Allah than through matrimony. On another juncture Holy Prophet Muhammad ( s.a.w. ) said: The best people of my state ( Ummat ) are those who get married and have chosen their married womans, and the worst people of my state are those who have kept off from matrimony and are go throughing their lives as unmarried mans. Imam Ali ( a.s. ) exhorts, Marry, because matrimony is the tradition of Holy Prophet Muhammad ( s.a.w. ) . Holy Prophet Muhammad ( s.a.w. ) besides said, Whosoever likes to follow my tradition, so he should cognize that matrimony is from my tradition. Unlike Hindu where the matrimony is a sacrament, matrimonies in Muslims have a nature of civil contract. Marriage is necessary for the legitimization of a kid. When the matrimony is done in conformity to the prescribed norms it creates assorted rights and duties on both the parties.

Small Business in Nigeria Essay Example | Topics and Well Written Essays - 4000 words

Small Business in Nigeria - Essay Example A short history of Nigeria's business and political changes is given. Environmental scans show that because of government intervention at many levels of business, and the favoring of large business by government, small business suffers from a lack of resources and funding. Because of political upheavals and tensions between factions of Nigeria, there has been a lack on economic stability or long-term economic policy. This paper relies upon information found in previous surveys. There is a severe lack of information available from Nigerian government sources. The postal system in Nigeria is deficient, and a third factor of difficulty is the unwillingness on the part of many Nigerians to 'share' information with outsiders. Personal visits by the sources to many companies were used to correlate information. Findings have been combined to develop an overall picture. While there are serious cultural differences WITHIN Nigeria, as well as without, the impact on business in Nigeria is becoming less important. ... The largest cultural difference within the country is from the North, the Huasas territory which is Muslim and very traditional, eschewing the English language, but still dominating the government policies. Another cultural situation is the paternalistic management of companies that follow traditional ways, using the older males of the family to manage the business. The impact of bribery and corruption has been shown to be negative on business in countries all over the world. Evidence of this is given in this paper. Communitarian virtue ethics theory is briefly discussed to the ethical context of Nigerian business. Cultural challenges as well as government changes suggest the need for a "mediating institutions approach" (Mambula 2004). The Enterprise Promotions Act of 1972 helped use more indigenous people in the management of foreign operations. These business philosophies may help reorganize Nigerian economics. The role of women in the workplace in Nigeria is examined, as it has become a growing part of the business world. Previous cultural restrictions have caused women to get less schooling and technical training, and own fewer businesses. But recent economic needs have pushed women into business where they often run their own business as well as take care of dometic chores. The constraints of banking practices on small business is discussed briefly. The overall viewpoint leads to considerations American business might need in deciding whether to engage in business in Nigeria or not. Leadership styles are also highlighted to show which has been more effective. And ethical business theories are focused upon. Common variables of research articles for direction and future research A paragraph from Babarinde (1997) states that

Careers in accounting Assignment Example | Topics and Well Written Essays - 500 words

Careers in accounting - Assignment Example Information prepared is for internal use not general public. Helps organization’s plan the cost of doing business, work on budgeting and performance evaluation. Most researched accounting position is accountant, both in public/private sectors. Skills required for success in accounting that will not only increase ones job satisfaction but build towards long term career goals include the following; Organization; being organized is a way of demonstrating to fellow workers/supervisors /managers that you are reliable/competent /able to get a job done. For good accountant one needs to have a system to keep track of those responsibilities they manage to ensure that they fulfill all duties to the best of ability. Tools like calendars, day planners can be used. Time management; good time management skills are essential.one needs to effectively budget their time to be able to manage their workload. Should be able to manage competing priorities while completing everything in time. This therefore aids in healthy work/life balance. Adaptability; since accounting industry is dynamic, one who is able to adapt quickly have an added advantage over others an d able to embrace change.one should focus on their strengths and use in tight situations. Communication skills; strong communication skills are extremely valuable.to communicate well in writing and in person will help you get a job, work as a team with co-workers, interact with clients. Good interpersonal skills vital for networking. Leadership; one needs to balance being a role model and person in charge while still being part of a team.in accounting, leadership skills include long term planning and strategic thinking thus ability to look ahead is key.leardership involves being visionary-making decisions that involves creativity. How the researched accounting position can add value to the company, seeking candidate; the accountant is able

Analysis of the Daimler-Benz and Chrysler Merger

Analysis of the Daimler-Benz and Chrysler Merger ABSTRACT Globalisation has changed the appearance of the economy. Especially in the 1990s firms expanded into new markets to operate more global and to develop their business. To do so, many companies choosed to expand via corporations with other companies to make the market entry easier or simply to strenghten their market position. Mergers and acquisition became one of the most used tools for development, whereas a merger between well known and successful companies always caused a sensation. Mergers caused such a stir as the companies involved in a merger faced a complete new identitiy and innovations were about to alter the company. The research project proves the decision for a merger rather than an alliance and the synergies gathered due to this tool of development. Two companies, Daimler-Benz and Chrysler, are investigated to illustrate the academic frameworks in practice to come to a conclusion why they merged. Methodology includes analysis of secondary data which has been published on the subject area. The findings and analysis of the research conducted, concluded that synergy is the most important aspect when companies grow through mergers. Furthermore, the results show that internationalisation due to globalisation is the key driver of mergers. The paper concludes with an evaluation of the study and recommendations for further research. CHAPTER ONE 1.1. Reason for Choice of Topic Companies come and go, chief executives rise and fall, industry sectors wax and wane, but an outstanding feature of the past decade has been the rise of mergers and acquisitions (MA). Whether in times of boom or bust, MAs continue to be the preferred option for businesses seeking to grow rapidly. A company has several options to choose from when it comes to growth strategies. One option is to grow organically by increasing sales personnel, new product developments and by expanding into new geographical areas. Alternative options to achieve the desired growth, companies traditionally build, buy, merge with other companies or co-operate through alliances. However, the best example of how to grow inorganic is to merge or aquire (Sherman, 2005). MAs are mainly about growth according to Lees (2003) and Sudarsanam (2003). Internal or organic growth is in most cases a slow process and MAs is another option that will increase the growth process. By doing an MA deal, the acquiring company or the merged companies can get instant access to new markets, technology and operations can be completed more efficiently. Several reasons and motives exist why a company chooses to grow through MA. According to Gaughan (2002) the most common motive for MA is to create synergy. However, other motives play also an important role, like diversification, improved management, market power or tax motives. Johnson and Scholes (1997) state that MAs are a quick way of entering new markets or products. The company can also gain competences or resources through this way. Knowledge about the market situation is also a significant cause why companies choose to develop through MA. Another reason for companies to develop through MA is that they are actively s earching for benefits arising from synergies. The author has chosen the topic to gain further knowledge about the topic of why do companies actually merge to gain synergy. The reasons for attempting to gain further knowledge are based on the authors fascination on MA in general and to the extend why Daimler-Benz and Chrysler did actually merge. The split between those two has not been long ago and therefore the author was particularly interested in this merger. Furthermore, the author is interested what type of synergies were the most relevant in this merger of equals. 1.2. Academic Obejctives of Dissertation This research aims to point out that synergies play an important role when two companies are doing a corporation in order to grow. The author has chosen the following objectives in order to support the research hypothesis: To discover why companies select mergers instead of strategic alliances as tool for development To investigate to what extend synergies play an important role when merging To explore the importance of internationalisation in times of globalisation 1.3. Outline of Chapters Introduction: Introduces the topic of this research and explains the aims and objectives of the study. Setting the scene: This chapter is to set the scene for the study. It presents background information about the two companies and what actually did happen. Literature review: Discusses the academic literature on mergers and acquisition and synergies concentrating on several approaches to be applied to the case study. Methodology: Discusses how the research was conducted and recognizes any limitations and biases of the chosen methods. It involves a description of how the research and data was analysed. Findings: Presentaion of the case study including important information for the research Analysis: The findings from the secondary research are analysed against the earlier literature and research from chapter three. Conclusion: The research project is finally concluded, commenting on the initial objectives of the study. The limitations and recommendations for further research are also discussed in this chapter. CHAPTER TWO 2.1. Background of Daimler-Benz AG As Jurgen Schrempp became the new CEO of Daimler-Benz AG in May 1995, one of his first jobs was the promulgation of a new strategic concept containig five points to strenghten their market position and to expand further. Mercedes considered the US market to be the important and competitive automobile market in the world. They established a greenfield plant in Tuscaloosa in 1994 already to strenghten their position in the US market and were supposed to be market openers. Those were the first signs that Daimler-Benz wanted to expand. 2.2. Background of the Chrysler Corporation From 1994 to 1997 Chrysler beat one historical record after another, where even some models were selected as cars of the year. It was even crowned by Forbes as the company of the year 1996. Bad labour relations have been improved through corporatist agreements. However, most cars were sold in the home market and plans to expand to other non-american countries have been scattered more or less. Nevertheless, the frequent crises and the internationalisation deficits of the company had planted the idea of a partner in the minds of the Chrysler executives. 2.3. The Merger When in May 1998 the CEO of Daimler Benz, Jurgen Schrempp and Robert Eaton, CEO of Chrysler signed the contract for a merger between those two companies, they made the biggest industrial merger in history. Both partners expected great value and advantages, as both companies seemed to complement well with each other. As a matter of fact, the company did not develop as good as anticipated. From the beginning on DaimlerChrysler could only announce little profits and losses, in the year 2001 it was even the biggest loss in history of all German companies. By mid 2004 the market value of the company has been less than half of what the value has been of both companies before the merger. By the same time the sales figures and business numbers of competitors increased. In May 2007, not even ten years after the merger, the dream of a super company bursted like a bubble. CHAPTER THREE 3.1. Reasons for Internationalisation As Kwon Kopona (1993) state in their theory the choice of market entry should relate to the companys corporate strategy and the extent, depth and geographical coverage of the present and intended foreign activities. Furthermore, the decision for growing should be made when there is a sufficient understanding of the different types of entry. On the one hand companies could gather experience through alliances and on the other hand fail to see that in particular cases an acquisition would be more successful (Clark, 2005). Dyer et al. (2004) state that a specific advice is needed about when to apply each strategy that is based on internal and external circumstances. Especially internally, the companies should focus on resources that are to be combined, the extent of unnecessary resources and the type of synergy which the firms seek. Externally, important factors are the degree of market uncertainty and the level of competition. As experience and interests of the company are different, t hese factors will have different degrees of importance. In Porters (1987) point of view entering a new market must be attractive for the expanding company. It needs feasibility of making profits in the target organisation. The costs of entry must be taken into account. These include direct costs as the cost of shares and advisors and indirect costs include such costs as integration costs. According to Dunning (1988) where he argues with the eclectic theory that additional costs can occur because of the failure of knowledge about market conditions, the legal and cultural diversities and the increased costs of operating at a distance. It also must be taken into consideration if the possibility of gaining synergies exists and what the opportunity of benefiting from the target companys core competences is. The local advantages of countries play an important role. The main country advantages can be classified as economic advantages, consisting of quantity and quality factors such as transportation, production, scope and the size of the market. Then there are political advantages that include government policies which have a positive influence on the market entry. And finally there are social and cultural advantages, which implicate the physical distance between the home country and the foreign country, language and cultural diversities and the general attitude towards foreigners. Dunning (1988) declared that companies have to be aware that relative attractiveness of locations can change over the year. He also declares that particular know-how and specific core abilities which count as an internalisation advantage can have a positive impact on the general business performance. 3.2. Methods of Development 3.2.1. Merger and Acquisitions As De Witt Meyer (1998) state in their thesis, mergers and acquisition are the most popular and influential form of discretionary foreign direct investment. Acquiring of another company is a takeover, be it friendly or hostile, while mergers only represent the share in a company according to Douglas Craig (1995). A non-adversarial approach benefits not only buyers but vendors as well, claimed by Beckett (2005). Mergers and acquisitions are significant alternatives to internal growth of companies as they enable companys fast penetration of new and foreign markets, acquire necessary know-how and skilled personal and obtain economies of scale and scope, according to Jackson (1995). Companies that merge gain access to supply and distribution channels through an upstream alliance. Furthermore Contractor Lorange (1998) state that enhancing their reputation and reducing competition if the integrated company is a competitor might be seen as an advantage. MAs are a well developed strategy and not a reaction to the first apparent opportunity as Simmons (1988) argued. As Coyle (2000) states, MA can be the outcome of either an aggressive or defensive strategy. Aggressive would mean that the company will seek to improve its market position to create a bigger company and finally to produce on a bigger scale and more cheaply through economies of scale. Defensive strategies on the other hand are made in order to survive in changing industry. A totally different reason for doing MA claimed Beckett (2005) as he said that companies may benefit from MAs when they acquire a company at a certain value and sell it later at a higher value. Through increasing shareholder value by providing a higher level of dividend and capital gain return and securing a higher return on the investment. This paper is mainly looking for the purposes for a merger and therefore for the realisation of potential synergy effects, as the purpose of most MAs is to achieve some kind of synergy. The belief is that two comparable companies together will achieve far better results than independently. Cost cuttings and savings will often lead to this effect. A successful MA can be classified as one where the potential synergies identified are to be utilised best as Coyle (2000) states. 3.2.2. Strategic Alliances Johnson (1999) has declared that defining strategic alliances are difficult to define as various forms exist. Clark (2005) defines it as two companies which are brought together with similar interest but with different strengths to work on particular projects, developmental approaches and marketing agreements which will offer benefits for both companies. Lorange and Ross (1992) even came to the conclusion as strategic alliances entail a very broad definition that it incorporates MA. Strategic alliances can be separated into three different types as Contractor and Lorange (1988) state: Joint ventures, Non-equity alliances and Minority equity alliances. Preece (1995) recognised 6 main reasons for strategic alliances, starting all with the letter L, therefore they can be named as the 6 Ls. Learning is the first one of them, as he argues that knowledge will be acquired. Leaning is meant as replacing the value chain activities and filling in the missing infrastructure. Leveraging will fully integrate the firms operation. Linking suggests that the links between supplier and customer should be build closer. Leaping pursues a radically new area of endeavour. And finally Locking out, which means reducing competitive pressure from non-partners. 3.2.3. MA versus Alliances The main difference between MA and alliances is the power of control according to Lorange Roos (1992). A pure acquisition would mean that the brought up company is under the control of the ones who bought it. To achieve growth due to acquisition and remain in control, huge financial resources are needed. Rather than buying a whole company, a corporation can propose a joint venture with a specific division in which the corporation is interested in. In case this joint venture works well, a multi-activity alliance could be grown. Equity swaps can be conducted for long-term stabilisation. However, without full control the corporation cannot decide for its own how the alliance or the merger will develop or if it will continue. A company with two equal CEOs does not work out well due to different interest and objects as Lorange Roos (1992) state. And Clark (2005) stated earlier that companies could gather experience through alliances but fail to see later that in particular cases an acquisition would be more successful. 3.3. Mergers 3.3.1. Types of mergers In a merger, the assets of two previously separate firms are combined to establish a new legal entity. In fact, the number of mergers in mergers and acquisition is almost vanishingly small. Less than 3 percent of cross border mergers and acquisitions by number are mergers. In reality, even when the mergers are supposedly between equal partners, most are acquisitions where one company controls the other. When there is a merger between two competing firms in the same industry, it is called a horizontal merger. (Buckley and Ghauri, 2002). When there is a vertical merger, two companies merge that have a buyer-seller relationship. Then there are the three conglomerate types. Pure conglomerate will be a merger where there are different markets and different products, so totally unrelated. Then there is conglomerate market extension, where it is a merger between a company that offers the same products but in a different geographical market. The last type is the conglomerate product extensio n, where the merged company sells non-competing products, but functionally related in production and distribution. In the case of the dissertation, it focuses on horizontal mergers which operate on overlapping markets and segments. Cartwright Cooper (1996) claimed that the definitions and intentions of MAs often read like a cheesy novel with a likeness to a more or less welcomed dating or courtship. The following four approaches are made: Pillage and Plunder One-night stand Courtship/Just Friends Love and Marriage Love and Marriage would certainly best fit to the focus of this paper, as the aim is to achieve a positive long term international growth. The fourth category is aiming for long term integration through assimilation and blending. 3.3.2. Cross-Border Mergers One important aspect of understanding cross-border MA is to examine the logic driving the deals. Strategic motives for a cross-border merger involve acquisitions that improve the strength of a firms strategy. Examples would include mergers intended to create synergy, capitalize on firms core competence, increase market power, provide the firm with complimentary resources, products and strengths, or finally to take advantage of a parenting advantage. However, in a recent book by Mark Sirower (1997) he argues that synergy rarely justifies the premium paid. Sirower declares, many acquisitions premiums require performance improvements that are virtually impossible to realize even for the best managers in the best of industry conditions (p.14). In exploiting a core competence a firm takes an intangible skill, expertise, or knowledge and leverages it by expanding its use to additional industries where it may create a competitive advantage in several different businesses. One strategic reas on to acquire is to gain complimentary products, resources or strengths. Research shows that one important driver of cross-border mergers and acquisitions may be undervaluation (Gonzalez et al., 1998). A driver of cross-border mergers might be differences in the macro-economic conditions in two countries. That is, one country might have a higher growth rate and more opportunity than some other country. Thus, it would seem reasonable to expect the slower growth country to be more often home to acquirers whereas the faster growth country is likely to more often home to target firms as Hitt et al. (2001) stated. Reasons for cross-border acquisitions include market power, overcoming market entry barriers, covering the cost of new product development, increasing the speed of entry into a market, and greater diversification. Cross-border acquisitions can produce both economies of scale and economies of scope. They help a firm enter new international markets and thereby enhance their ability to complete in global markets. Of course, cross-border acquisitions are even more challenging to complete successfully than acquisitions of domestic firms according to Hitt et al. (2001). In fact, some research studies suggests that with the right strategy and the right approach to post-merger integration, cross-border acquisitions can create value for the acquiring firm according to Belcher and Nail (2000). 3.4. Motives and Objectives for Merging The literature on motives for MA has placed a significant amount of different sources and theories by several authors. The merits of using mergers to reduce costs are disputed by managers and by practitioners. For example, managers have been heard to comment that costs reductions are the merger benefit that is most likely to be achieved whereas the achievement of synergy is highly uncertain. On the other hand, Michael Porter argues that what passes for strategy today is simply improving operational effectiveness. Porter (1998) argues, In many companies, leadership has degenerated into orchestrating operational improvements and making deals (p.70). It is understandable how operational effectiveness may have come to be the driving motive for many mergers, however. Often at the same time a merger is announced, there will be an announcement of a cost reduction target. Merging in order to create synergy is probably the most often cited justification for an acquirer to pay a premium for a target company. Synergy effects can be created by redeploying assets. This can mean two different things. In the first case, the acquiring company may transfer a resource belonging to the target company to the acquiring company. Colombo et al. (2007) also found out that a strong predictor of acquisition performance was the extent of asset redeployment from the target to the bidder. Weston and Weaver (2001) stated that the first category is synergy or efficiency for a merger, in which total value from the combination is greater than the sum of the values of the component firms operating independently. Hubris is the result of the winners curse, causing bidders to overpay; it postulates that value is unchanged. Of course, in a synergistic merger, it would be possible for the bidder to overpay as well. The third class of mergers comprises those in which total value is decreased as a result of mistakes or managers who put their own preferences above the well-being of the firm, the agency problem. Economic motives are an important subcategory creating strategic logic for a merger. One example is to establish economies of scale. A second closely related reason is to be able to reduce costs due to redundant resources of two firms in the same or closely related industry. Thus if the company acquires a company that is in the same or a closely related industry and there is substantial overlap between the two businesses there may be ample opportunities to reduce costs. Another reason is that the stock of the firms from a particular country may be undervalued. A fourth reason is the macroeconomic difference between countries such as different growth rates. Finally, the exchange rates may play a role. Recent research did show that acquiring a foreign company when the home country currency has appreciated in relation to the target companys currency has great benefits for the acquiring company when the industry is highly technological (Georgopoulos, 2008). Firms engage in merger and acquisition activity for many reasons. Effective mergers and acquisitions can, for example: serve as a platform for corporate growth, lead to increased market share, provide the foundations required to generate and gain advantages from economies of scale (these are benefits that occur when the firm is able to use its resources to drive costs lower across multiple products; scale economies are acquired primarily at the operational level) and economies of scope (these are benefits realised through using one units resources in the operations of another unit), and reduce organizational expenses by eliminating duplication and transferring knowledge between and among business units and/or individual product lines (Collins and Montgomery, 1999). One of the most important motives for MA activities, as seen from the experience of the last decade, has been economies of scale and scope. Companies aim to achieve economies of scale by combining resources of two merging companies or create economies of scope by acquiring a company allowing product/market diversification. Other motives include access to each others technology or market reach, achieving a dominant position in the industry, consolidation of the industry, and manipulating rules of competition and antitrust as Buckley and Ghauri (2002) state. The question as to whether merge primarily concerns the identification of the corporate objects and which of these objects are to be pursued through organic growth and which through MA in the form of participations or a full takeover. At the same time, the consequences of the growth strategy and its economic or financial effects in the light of the competition situation and the extension of the value added chain must be carefully examined. Empirically, in approximately 85 per cent of all concentrations between undertakings and acquisitions, the question as to whether is answered with a view to the object of achieving growth in the core business (Picot, 2002). However, Buckley and Ghauri (2002) stated also that mergers and acquisition have become the most dramatic demonstration of vision and strategy in the corporate world. More than 50 percent of the mergers so far have led to a decrease in share value and another 25 percent have shown no significant increase. When coming to a conclusion what is now the main purpose to merge, the author would conclude that it depends on the companys expansion strategy and the different motivation to form alliances. However, effective mergers and acquisitions can serve as a platform for corporate growth, lead to increased market share, provide the foundations required generating and gaining advantages from economies of scale and scope as Collins and Montgomery (1999) concluded. These factors are seen as the most important motives to form a merger and to believe that it would help the effected corporations to strengthen their market position and even gain more market share. 3.4.1. Synergy According to Coyle (2000) synergy is the additional benefit that can be derived from combining the resources of the bidding and target companies. Synergy has been described as the two and two makes five effect. It can also be classified as Gaughan (2002) put it, as synergy and value creation are a synonymous and synergy is when the value of the MA exceeds the value of the two separate firms put together. According to Habeck et al. (2000) the term synergy is used as a synonym for cost cutting. However, in his book he argues that those companies that understand this definition of synergy as cost cutting need to redefine it as it also includes the positive aspects of the MA such as growth and knowledge sharing. Furthermore, he states that it is important to capture growth synergies as quickly as possible and favour those areas where cost efficiencies can be gained. Therefore synergy is an important part in a successful merger. Ansoff (1986) classified different types of synergies. Manag ement synergy occurs when the top management of one of the companies resolves problems of the other company through their experience. Investment synergy can occur from the joint use of plant and equipment, joint research and development efforts, and having common raw materials inventories. Operating synergy can arise from better utilization of facilities and personnel and bulk-order purchasing to reduce upcoming material costs. And finally sales synergy where a merged organization can benefit from common sales administration, distribution channels, warehousing and sales promotion. 3.4.2. Creating Synergy through Mergers Hitt et al. (2001) states that there are four foundations in the creation of synergy which are called strategic fit, organisational fit, managerial actions and value creation. As all four foundations exist the chance of creating synergy is substantially better. Strategic fit can be defined as the match between the two companies organisational capabilities. As two companies with similar capabilities and the same strengths and weaknesses merge the chances of creating synergy is reduced. Organisational fit means that the two companies are highly compatible, meaning that these have similar management processes, cultures, systems and structures. This makes it easier for the firms to share resources, knowledge, skills and effectively communicate. Companies without organisational fit could find that the integration process will be hard to implement. Managerial actions is that creating synergy requires the active management of the acquisition process, in order to realize the different synerg ies and the benefits they convey. To create synergy an active management is needed that recognises the international issues and other problems connected with the MA process. Value creation is the last of the four synergy creation foundations. It is based on the fact that the benefits from the synergy need to exceed the cost of creating and capturing synergy. The costs that should be less than the value of the synergy that is created include those associated with a purchasing premium, financing of the transaction and the set of implementation actions required to integrate the acquired unit into the existing organisational structure. Synergy will add no value as creating it outweighs the value of the synergy. Gaughan (2002) has compiled a model of the process of realizing synergistic gains. The management needs to carefully deal with the strategic planning since the better planned MA is a better chance to succeed. Secondly the management needs to integrate the two companies into one. Finally the synergy can be separated into revenue enhancing synergies or cost cutting synergies. Ficery et al. (2007) furthermore points out that synergy created through MA, the targeted company has access to new geographic market or access to a new customer segment allowing the acquiring company to reach those new markets and segments at a faster pace and at a lower cost. CHAPTER FOUR 4.1. Introduction In this chapter, the author examines the most suitable methodology for the research area and justifies the different methods chosen. It outlines the authors main decisions on methods and data collection and considers their implications for the research findings. It also includes details for the sources used for information collection and explanations why other research methods were rejected. Furthermore, this chapter will give an insight into how secondary research has been gathered, discuss advantages and limitations of research methods and illustrate ethical issues. 4.2. Research strategy This chapter examines the most suitable methodology for the research area and justifies the methods chosen. The author explains how the linkage between the academic literature and reality was explored by using research methods. Furthermore, it will give an insight into how secondary research has been gathered, discuss advantages and limitations of research methods and illustrate ethical issues for this thesis. According to Jankowicz (2000) there are four research strategies that can be used for conducting: the archival method, the case study, the survey and the field experiment. By using the archival method, the companys present and future performance can be analysed by using past financial figures. Using the case study as a research method, a specific organisation can be analysed by researching the internal and external situation of the organisation to find conclusion for a specific subject. Through surveys, human input can be used to find representing input out of the population to a specific topic. A field experiment applies the scientific method to experimentally examine an intervention in the real world. The case study is the most suitable research method to use, as the objective of this research is to analyse and investigate the external situation within a real-life Analysis of the Daimler-Benz and Chrysler Merger Analysis of the Daimler-Benz and Chrysler Merger ABSTRACT Globalisation has changed the appearance of the economy. Especially in the 1990s firms expanded into new markets to operate more global and to develop their business. To do so, many companies choosed to expand via corporations with other companies to make the market entry easier or simply to strenghten their market position. Mergers and acquisition became one of the most used tools for development, whereas a merger between well known and successful companies always caused a sensation. Mergers caused such a stir as the companies involved in a merger faced a complete new identitiy and innovations were about to alter the company. The research project proves the decision for a merger rather than an alliance and the synergies gathered due to this tool of development. Two companies, Daimler-Benz and Chrysler, are investigated to illustrate the academic frameworks in practice to come to a conclusion why they merged. Methodology includes analysis of secondary data which has been published on the subject area. The findings and analysis of the research conducted, concluded that synergy is the most important aspect when companies grow through mergers. Furthermore, the results show that internationalisation due to globalisation is the key driver of mergers. The paper concludes with an evaluation of the study and recommendations for further research. CHAPTER ONE 1.1. Reason for Choice of Topic Companies come and go, chief executives rise and fall, industry sectors wax and wane, but an outstanding feature of the past decade has been the rise of mergers and acquisitions (MA). Whether in times of boom or bust, MAs continue to be the preferred option for businesses seeking to grow rapidly. A company has several options to choose from when it comes to growth strategies. One option is to grow organically by increasing sales personnel, new product developments and by expanding into new geographical areas. Alternative options to achieve the desired growth, companies traditionally build, buy, merge with other companies or co-operate through alliances. However, the best example of how to grow inorganic is to merge or aquire (Sherman, 2005). MAs are mainly about growth according to Lees (2003) and Sudarsanam (2003). Internal or organic growth is in most cases a slow process and MAs is another option that will increase the growth process. By doing an MA deal, the acquiring company or the merged companies can get instant access to new markets, technology and operations can be completed more efficiently. Several reasons and motives exist why a company chooses to grow through MA. According to Gaughan (2002) the most common motive for MA is to create synergy. However, other motives play also an important role, like diversification, improved management, market power or tax motives. Johnson and Scholes (1997) state that MAs are a quick way of entering new markets or products. The company can also gain competences or resources through this way. Knowledge about the market situation is also a significant cause why companies choose to develop through MA. Another reason for companies to develop through MA is that they are actively s earching for benefits arising from synergies. The author has chosen the topic to gain further knowledge about the topic of why do companies actually merge to gain synergy. The reasons for attempting to gain further knowledge are based on the authors fascination on MA in general and to the extend why Daimler-Benz and Chrysler did actually merge. The split between those two has not been long ago and therefore the author was particularly interested in this merger. Furthermore, the author is interested what type of synergies were the most relevant in this merger of equals. 1.2. Academic Obejctives of Dissertation This research aims to point out that synergies play an important role when two companies are doing a corporation in order to grow. The author has chosen the following objectives in order to support the research hypothesis: To discover why companies select mergers instead of strategic alliances as tool for development To investigate to what extend synergies play an important role when merging To explore the importance of internationalisation in times of globalisation 1.3. Outline of Chapters Introduction: Introduces the topic of this research and explains the aims and objectives of the study. Setting the scene: This chapter is to set the scene for the study. It presents background information about the two companies and what actually did happen. Literature review: Discusses the academic literature on mergers and acquisition and synergies concentrating on several approaches to be applied to the case study. Methodology: Discusses how the research was conducted and recognizes any limitations and biases of the chosen methods. It involves a description of how the research and data was analysed. Findings: Presentaion of the case study including important information for the research Analysis: The findings from the secondary research are analysed against the earlier literature and research from chapter three. Conclusion: The research project is finally concluded, commenting on the initial objectives of the study. The limitations and recommendations for further research are also discussed in this chapter. CHAPTER TWO 2.1. Background of Daimler-Benz AG As Jurgen Schrempp became the new CEO of Daimler-Benz AG in May 1995, one of his first jobs was the promulgation of a new strategic concept containig five points to strenghten their market position and to expand further. Mercedes considered the US market to be the important and competitive automobile market in the world. They established a greenfield plant in Tuscaloosa in 1994 already to strenghten their position in the US market and were supposed to be market openers. Those were the first signs that Daimler-Benz wanted to expand. 2.2. Background of the Chrysler Corporation From 1994 to 1997 Chrysler beat one historical record after another, where even some models were selected as cars of the year. It was even crowned by Forbes as the company of the year 1996. Bad labour relations have been improved through corporatist agreements. However, most cars were sold in the home market and plans to expand to other non-american countries have been scattered more or less. Nevertheless, the frequent crises and the internationalisation deficits of the company had planted the idea of a partner in the minds of the Chrysler executives. 2.3. The Merger When in May 1998 the CEO of Daimler Benz, Jurgen Schrempp and Robert Eaton, CEO of Chrysler signed the contract for a merger between those two companies, they made the biggest industrial merger in history. Both partners expected great value and advantages, as both companies seemed to complement well with each other. As a matter of fact, the company did not develop as good as anticipated. From the beginning on DaimlerChrysler could only announce little profits and losses, in the year 2001 it was even the biggest loss in history of all German companies. By mid 2004 the market value of the company has been less than half of what the value has been of both companies before the merger. By the same time the sales figures and business numbers of competitors increased. In May 2007, not even ten years after the merger, the dream of a super company bursted like a bubble. CHAPTER THREE 3.1. Reasons for Internationalisation As Kwon Kopona (1993) state in their theory the choice of market entry should relate to the companys corporate strategy and the extent, depth and geographical coverage of the present and intended foreign activities. Furthermore, the decision for growing should be made when there is a sufficient understanding of the different types of entry. On the one hand companies could gather experience through alliances and on the other hand fail to see that in particular cases an acquisition would be more successful (Clark, 2005). Dyer et al. (2004) state that a specific advice is needed about when to apply each strategy that is based on internal and external circumstances. Especially internally, the companies should focus on resources that are to be combined, the extent of unnecessary resources and the type of synergy which the firms seek. Externally, important factors are the degree of market uncertainty and the level of competition. As experience and interests of the company are different, t hese factors will have different degrees of importance. In Porters (1987) point of view entering a new market must be attractive for the expanding company. It needs feasibility of making profits in the target organisation. The costs of entry must be taken into account. These include direct costs as the cost of shares and advisors and indirect costs include such costs as integration costs. According to Dunning (1988) where he argues with the eclectic theory that additional costs can occur because of the failure of knowledge about market conditions, the legal and cultural diversities and the increased costs of operating at a distance. It also must be taken into consideration if the possibility of gaining synergies exists and what the opportunity of benefiting from the target companys core competences is. The local advantages of countries play an important role. The main country advantages can be classified as economic advantages, consisting of quantity and quality factors such as transportation, production, scope and the size of the market. Then there are political advantages that include government policies which have a positive influence on the market entry. And finally there are social and cultural advantages, which implicate the physical distance between the home country and the foreign country, language and cultural diversities and the general attitude towards foreigners. Dunning (1988) declared that companies have to be aware that relative attractiveness of locations can change over the year. He also declares that particular know-how and specific core abilities which count as an internalisation advantage can have a positive impact on the general business performance. 3.2. Methods of Development 3.2.1. Merger and Acquisitions As De Witt Meyer (1998) state in their thesis, mergers and acquisition are the most popular and influential form of discretionary foreign direct investment. Acquiring of another company is a takeover, be it friendly or hostile, while mergers only represent the share in a company according to Douglas Craig (1995). A non-adversarial approach benefits not only buyers but vendors as well, claimed by Beckett (2005). Mergers and acquisitions are significant alternatives to internal growth of companies as they enable companys fast penetration of new and foreign markets, acquire necessary know-how and skilled personal and obtain economies of scale and scope, according to Jackson (1995). Companies that merge gain access to supply and distribution channels through an upstream alliance. Furthermore Contractor Lorange (1998) state that enhancing their reputation and reducing competition if the integrated company is a competitor might be seen as an advantage. MAs are a well developed strategy and not a reaction to the first apparent opportunity as Simmons (1988) argued. As Coyle (2000) states, MA can be the outcome of either an aggressive or defensive strategy. Aggressive would mean that the company will seek to improve its market position to create a bigger company and finally to produce on a bigger scale and more cheaply through economies of scale. Defensive strategies on the other hand are made in order to survive in changing industry. A totally different reason for doing MA claimed Beckett (2005) as he said that companies may benefit from MAs when they acquire a company at a certain value and sell it later at a higher value. Through increasing shareholder value by providing a higher level of dividend and capital gain return and securing a higher return on the investment. This paper is mainly looking for the purposes for a merger and therefore for the realisation of potential synergy effects, as the purpose of most MAs is to achieve some kind of synergy. The belief is that two comparable companies together will achieve far better results than independently. Cost cuttings and savings will often lead to this effect. A successful MA can be classified as one where the potential synergies identified are to be utilised best as Coyle (2000) states. 3.2.2. Strategic Alliances Johnson (1999) has declared that defining strategic alliances are difficult to define as various forms exist. Clark (2005) defines it as two companies which are brought together with similar interest but with different strengths to work on particular projects, developmental approaches and marketing agreements which will offer benefits for both companies. Lorange and Ross (1992) even came to the conclusion as strategic alliances entail a very broad definition that it incorporates MA. Strategic alliances can be separated into three different types as Contractor and Lorange (1988) state: Joint ventures, Non-equity alliances and Minority equity alliances. Preece (1995) recognised 6 main reasons for strategic alliances, starting all with the letter L, therefore they can be named as the 6 Ls. Learning is the first one of them, as he argues that knowledge will be acquired. Leaning is meant as replacing the value chain activities and filling in the missing infrastructure. Leveraging will fully integrate the firms operation. Linking suggests that the links between supplier and customer should be build closer. Leaping pursues a radically new area of endeavour. And finally Locking out, which means reducing competitive pressure from non-partners. 3.2.3. MA versus Alliances The main difference between MA and alliances is the power of control according to Lorange Roos (1992). A pure acquisition would mean that the brought up company is under the control of the ones who bought it. To achieve growth due to acquisition and remain in control, huge financial resources are needed. Rather than buying a whole company, a corporation can propose a joint venture with a specific division in which the corporation is interested in. In case this joint venture works well, a multi-activity alliance could be grown. Equity swaps can be conducted for long-term stabilisation. However, without full control the corporation cannot decide for its own how the alliance or the merger will develop or if it will continue. A company with two equal CEOs does not work out well due to different interest and objects as Lorange Roos (1992) state. And Clark (2005) stated earlier that companies could gather experience through alliances but fail to see later that in particular cases an acquisition would be more successful. 3.3. Mergers 3.3.1. Types of mergers In a merger, the assets of two previously separate firms are combined to establish a new legal entity. In fact, the number of mergers in mergers and acquisition is almost vanishingly small. Less than 3 percent of cross border mergers and acquisitions by number are mergers. In reality, even when the mergers are supposedly between equal partners, most are acquisitions where one company controls the other. When there is a merger between two competing firms in the same industry, it is called a horizontal merger. (Buckley and Ghauri, 2002). When there is a vertical merger, two companies merge that have a buyer-seller relationship. Then there are the three conglomerate types. Pure conglomerate will be a merger where there are different markets and different products, so totally unrelated. Then there is conglomerate market extension, where it is a merger between a company that offers the same products but in a different geographical market. The last type is the conglomerate product extensio n, where the merged company sells non-competing products, but functionally related in production and distribution. In the case of the dissertation, it focuses on horizontal mergers which operate on overlapping markets and segments. Cartwright Cooper (1996) claimed that the definitions and intentions of MAs often read like a cheesy novel with a likeness to a more or less welcomed dating or courtship. The following four approaches are made: Pillage and Plunder One-night stand Courtship/Just Friends Love and Marriage Love and Marriage would certainly best fit to the focus of this paper, as the aim is to achieve a positive long term international growth. The fourth category is aiming for long term integration through assimilation and blending. 3.3.2. Cross-Border Mergers One important aspect of understanding cross-border MA is to examine the logic driving the deals. Strategic motives for a cross-border merger involve acquisitions that improve the strength of a firms strategy. Examples would include mergers intended to create synergy, capitalize on firms core competence, increase market power, provide the firm with complimentary resources, products and strengths, or finally to take advantage of a parenting advantage. However, in a recent book by Mark Sirower (1997) he argues that synergy rarely justifies the premium paid. Sirower declares, many acquisitions premiums require performance improvements that are virtually impossible to realize even for the best managers in the best of industry conditions (p.14). In exploiting a core competence a firm takes an intangible skill, expertise, or knowledge and leverages it by expanding its use to additional industries where it may create a competitive advantage in several different businesses. One strategic reas on to acquire is to gain complimentary products, resources or strengths. Research shows that one important driver of cross-border mergers and acquisitions may be undervaluation (Gonzalez et al., 1998). A driver of cross-border mergers might be differences in the macro-economic conditions in two countries. That is, one country might have a higher growth rate and more opportunity than some other country. Thus, it would seem reasonable to expect the slower growth country to be more often home to acquirers whereas the faster growth country is likely to more often home to target firms as Hitt et al. (2001) stated. Reasons for cross-border acquisitions include market power, overcoming market entry barriers, covering the cost of new product development, increasing the speed of entry into a market, and greater diversification. Cross-border acquisitions can produce both economies of scale and economies of scope. They help a firm enter new international markets and thereby enhance their ability to complete in global markets. Of course, cross-border acquisitions are even more challenging to complete successfully than acquisitions of domestic firms according to Hitt et al. (2001). In fact, some research studies suggests that with the right strategy and the right approach to post-merger integration, cross-border acquisitions can create value for the acquiring firm according to Belcher and Nail (2000). 3.4. Motives and Objectives for Merging The literature on motives for MA has placed a significant amount of different sources and theories by several authors. The merits of using mergers to reduce costs are disputed by managers and by practitioners. For example, managers have been heard to comment that costs reductions are the merger benefit that is most likely to be achieved whereas the achievement of synergy is highly uncertain. On the other hand, Michael Porter argues that what passes for strategy today is simply improving operational effectiveness. Porter (1998) argues, In many companies, leadership has degenerated into orchestrating operational improvements and making deals (p.70). It is understandable how operational effectiveness may have come to be the driving motive for many mergers, however. Often at the same time a merger is announced, there will be an announcement of a cost reduction target. Merging in order to create synergy is probably the most often cited justification for an acquirer to pay a premium for a target company. Synergy effects can be created by redeploying assets. This can mean two different things. In the first case, the acquiring company may transfer a resource belonging to the target company to the acquiring company. Colombo et al. (2007) also found out that a strong predictor of acquisition performance was the extent of asset redeployment from the target to the bidder. Weston and Weaver (2001) stated that the first category is synergy or efficiency for a merger, in which total value from the combination is greater than the sum of the values of the component firms operating independently. Hubris is the result of the winners curse, causing bidders to overpay; it postulates that value is unchanged. Of course, in a synergistic merger, it would be possible for the bidder to overpay as well. The third class of mergers comprises those in which total value is decreased as a result of mistakes or managers who put their own preferences above the well-being of the firm, the agency problem. Economic motives are an important subcategory creating strategic logic for a merger. One example is to establish economies of scale. A second closely related reason is to be able to reduce costs due to redundant resources of two firms in the same or closely related industry. Thus if the company acquires a company that is in the same or a closely related industry and there is substantial overlap between the two businesses there may be ample opportunities to reduce costs. Another reason is that the stock of the firms from a particular country may be undervalued. A fourth reason is the macroeconomic difference between countries such as different growth rates. Finally, the exchange rates may play a role. Recent research did show that acquiring a foreign company when the home country currency has appreciated in relation to the target companys currency has great benefits for the acquiring company when the industry is highly technological (Georgopoulos, 2008). Firms engage in merger and acquisition activity for many reasons. Effective mergers and acquisitions can, for example: serve as a platform for corporate growth, lead to increased market share, provide the foundations required to generate and gain advantages from economies of scale (these are benefits that occur when the firm is able to use its resources to drive costs lower across multiple products; scale economies are acquired primarily at the operational level) and economies of scope (these are benefits realised through using one units resources in the operations of another unit), and reduce organizational expenses by eliminating duplication and transferring knowledge between and among business units and/or individual product lines (Collins and Montgomery, 1999). One of the most important motives for MA activities, as seen from the experience of the last decade, has been economies of scale and scope. Companies aim to achieve economies of scale by combining resources of two merging companies or create economies of scope by acquiring a company allowing product/market diversification. Other motives include access to each others technology or market reach, achieving a dominant position in the industry, consolidation of the industry, and manipulating rules of competition and antitrust as Buckley and Ghauri (2002) state. The question as to whether merge primarily concerns the identification of the corporate objects and which of these objects are to be pursued through organic growth and which through MA in the form of participations or a full takeover. At the same time, the consequences of the growth strategy and its economic or financial effects in the light of the competition situation and the extension of the value added chain must be carefully examined. Empirically, in approximately 85 per cent of all concentrations between undertakings and acquisitions, the question as to whether is answered with a view to the object of achieving growth in the core business (Picot, 2002). However, Buckley and Ghauri (2002) stated also that mergers and acquisition have become the most dramatic demonstration of vision and strategy in the corporate world. More than 50 percent of the mergers so far have led to a decrease in share value and another 25 percent have shown no significant increase. When coming to a conclusion what is now the main purpose to merge, the author would conclude that it depends on the companys expansion strategy and the different motivation to form alliances. However, effective mergers and acquisitions can serve as a platform for corporate growth, lead to increased market share, provide the foundations required generating and gaining advantages from economies of scale and scope as Collins and Montgomery (1999) concluded. These factors are seen as the most important motives to form a merger and to believe that it would help the effected corporations to strengthen their market position and even gain more market share. 3.4.1. Synergy According to Coyle (2000) synergy is the additional benefit that can be derived from combining the resources of the bidding and target companies. Synergy has been described as the two and two makes five effect. It can also be classified as Gaughan (2002) put it, as synergy and value creation are a synonymous and synergy is when the value of the MA exceeds the value of the two separate firms put together. According to Habeck et al. (2000) the term synergy is used as a synonym for cost cutting. However, in his book he argues that those companies that understand this definition of synergy as cost cutting need to redefine it as it also includes the positive aspects of the MA such as growth and knowledge sharing. Furthermore, he states that it is important to capture growth synergies as quickly as possible and favour those areas where cost efficiencies can be gained. Therefore synergy is an important part in a successful merger. Ansoff (1986) classified different types of synergies. Manag ement synergy occurs when the top management of one of the companies resolves problems of the other company through their experience. Investment synergy can occur from the joint use of plant and equipment, joint research and development efforts, and having common raw materials inventories. Operating synergy can arise from better utilization of facilities and personnel and bulk-order purchasing to reduce upcoming material costs. And finally sales synergy where a merged organization can benefit from common sales administration, distribution channels, warehousing and sales promotion. 3.4.2. Creating Synergy through Mergers Hitt et al. (2001) states that there are four foundations in the creation of synergy which are called strategic fit, organisational fit, managerial actions and value creation. As all four foundations exist the chance of creating synergy is substantially better. Strategic fit can be defined as the match between the two companies organisational capabilities. As two companies with similar capabilities and the same strengths and weaknesses merge the chances of creating synergy is reduced. Organisational fit means that the two companies are highly compatible, meaning that these have similar management processes, cultures, systems and structures. This makes it easier for the firms to share resources, knowledge, skills and effectively communicate. Companies without organisational fit could find that the integration process will be hard to implement. Managerial actions is that creating synergy requires the active management of the acquisition process, in order to realize the different synerg ies and the benefits they convey. To create synergy an active management is needed that recognises the international issues and other problems connected with the MA process. Value creation is the last of the four synergy creation foundations. It is based on the fact that the benefits from the synergy need to exceed the cost of creating and capturing synergy. The costs that should be less than the value of the synergy that is created include those associated with a purchasing premium, financing of the transaction and the set of implementation actions required to integrate the acquired unit into the existing organisational structure. Synergy will add no value as creating it outweighs the value of the synergy. Gaughan (2002) has compiled a model of the process of realizing synergistic gains. The management needs to carefully deal with the strategic planning since the better planned MA is a better chance to succeed. Secondly the management needs to integrate the two companies into one. Finally the synergy can be separated into revenue enhancing synergies or cost cutting synergies. Ficery et al. (2007) furthermore points out that synergy created through MA, the targeted company has access to new geographic market or access to a new customer segment allowing the acquiring company to reach those new markets and segments at a faster pace and at a lower cost. CHAPTER FOUR 4.1. Introduction In this chapter, the author examines the most suitable methodology for the research area and justifies the different methods chosen. It outlines the authors main decisions on methods and data collection and considers their implications for the research findings. It also includes details for the sources used for information collection and explanations why other research methods were rejected. Furthermore, this chapter will give an insight into how secondary research has been gathered, discuss advantages and limitations of research methods and illustrate ethical issues. 4.2. Research strategy This chapter examines the most suitable methodology for the research area and justifies the methods chosen. The author explains how the linkage between the academic literature and reality was explored by using research methods. Furthermore, it will give an insight into how secondary research has been gathered, discuss advantages and limitations of research methods and illustrate ethical issues for this thesis. According to Jankowicz (2000) there are four research strategies that can be used for conducting: the archival method, the case study, the survey and the field experiment. By using the archival method, the companys present and future performance can be analysed by using past financial figures. Using the case study as a research method, a specific organisation can be analysed by researching the internal and external situation of the organisation to find conclusion for a specific subject. Through surveys, human input can be used to find representing input out of the population to a specific topic. A field experiment applies the scientific method to experimentally examine an intervention in the real world. The case study is the most suitable research method to use, as the objective of this research is to analyse and investigate the external situation within a real-life