Key challenges for European logistics companies and implications for their M&A strategy

Key challenges for European logistics companies and implications for their M&A strategy PDF

Author: Hannes Mungenast

Publisher: GRIN Verlag

Published: 2013-07-09

Total Pages: 108

ISBN-13: 3656457867

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Diploma Thesis from the year 2008 in the subject Business economics - Business Management, Corporate Governance, University of Applied Sciences Kufstein Tirol, language: English, abstract: The world is constantly changing, particularly in booming industries such as logistics. Globalisation, increased outsourcing, customers’ demand for global coverage and integrated services are just a few examples of how the external environment affects logistics companies. Based on an external audit for logistics companies with focus on competitive forces, the thesis answers three main questions, which step-by-step answer the main question of how logistics companies should react to the changes in the external environment. Firstly, based on market estimates about future growth rates of the industry it is assessed whether a growth strategy is a feasible grand strategy for logistics companies. The outcome is that the logistics industry is booming and therefore a growth strategy is feasible. Secondly, it is assessed whether mergers and acquisitions (M&A) are a feasible growth option by conducting an event study of logistics M&A transactions for the past decade. The results show that it can not be proven that logistics M&A destroy value for the acquirer and in some cases it can even be proven that they enhance the value of the acquirer. Therefore, it can be concluded that M&A are a feasible growth option for logistics companies. Thirdly, the main challenges for logistics companies from the external environment and the implications for their M&A strategy are discussed. The largest challenges within the industry include the rise of BRIC countries and the integration of freight forwarding and contract logistics. An expansion to China for example is mainly done organically due to the lack of suitable takeover targets, while the combination of freight forwarding and contract logistics is often done through M&A. Capital markets react positively to an integration of the two industries and strategic reasons support this combination too. Shipping lines and railway companies are expanding into logistics competing with logistics companies for the business as well as in M&A tenders. A key in the logistics industry is to get direct access to customers. Shipping lines and railways expanding into logistics and freight forwarders expanding into contract logistics are examples of securing access to customers to realise cross-selling potentials.

Key Challenges for European Logistics Companies and Implications for Their M&A Strategy

Key Challenges for European Logistics Companies and Implications for Their M&A Strategy PDF

Author: Hannes Mungenast

Publisher:

Published: 2013-07

Total Pages: 112

ISBN-13: 9783656458302

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Diploma Thesis from the year 2008 in the subject Business economics - Business Management, Corporate Governance, grade: -, University of Applied Sciences Kufstein Tirol, language: English, abstract: The world is constantly changing, particularly in booming industries such as logistics. Globalisation, increased outsourcing, customers' demand for global coverage and integrated services are just a few examples of how the external environment affects logistics companies. Based on an external audit for logistics companies with focus on competitive forces, the thesis answers three main questions, which step-by-step answer the main question of how logistics companies should react to the changes in the external environment. Firstly, based on market estimates about future growth rates of the industry it is assessed whether a growth strategy is a feasible grand strategy for logistics companies. The outcome is that the logistics industry is booming and therefore a growth strategy is feasible. Secondly, it is assessed whether mergers and acquisitions (M&A) are a feasible growth option by conducting an event study of logistics M&A transactions for the past decade. The results show that it can not be proven that logistics M&A destroy value for the acquirer and in some cases it can even be proven that they enhance the value of the acquirer. Therefore, it can be concluded that M&A are a feasible growth option for logistics companies. Thirdly, the main challenges for logistics companies from the external environment and the implications for their M&A strategy are discussed. The largest challenges within the industry include the rise of BRIC countries and the integration of freight forwarding and contract logistics. An expansion to China for example is mainly done organically due to the lack of suitable takeover targets, while the combination of freight forwarding and contract logistics is often done through M&A. Capital markets react positively to an integration of the two industrie

European Logistics

European Logistics PDF

Author: Jim Cooper

Publisher: Wiley-Blackwell

Published: 1994-05-09

Total Pages: 344

ISBN-13: 9780631192268

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Based on five years fieldwork it is a timely analysis of the current status of logistics and its future role in European business.

Future Logistics Challenges

Future Logistics Challenges PDF

Author: Leif Enarsson

Publisher: Copenhagen Business School Press DK

Published: 2006

Total Pages: 404

ISBN-13: 9788763001700

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This book presents a perspective for the future development of logistics, especially in an European context. The structure is a flow from inbound to reverse logistics with emphasis on logistics development, as well as transportation and information systems. The book is strategic, both external and internal, with special emphasis on the many new and important fields of logistics management. The book provides an understanding between the various logistics activities, and it shows how business logistics is connected to the overall strategy of a company. Some descriptions are on a more general level, while others look more closely at special logistics activities as part of a supply chain.

Global Logistics And Distribution Planning

Global Logistics And Distribution Planning PDF

Author: Donald Waters

Publisher: Routledge

Published: 2018-05-02

Total Pages: 416

ISBN-13: 1351444743

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The fully revised new edition of this well known and respected book is characterized by the more international perspective it has taken on through contributions from internationally known authors and a final section on international logistics which examines in turn strategies for West and East Europe, the Far East and North America. Logistics has a key strategic role to play in the long-term plans of major companies, and is recognized as a vital part of every organization. To a large extent this crucial new role is due to an expanded view of logistics, which now includes all the activities related to the supply chain from initial suppliers through to final customers. This book provides a wealth of useful ideas and practical information on all the current and future trends in logistics and distribution. Written by a host of contributors drawn from industry, constancy and education, this book provides new insights into the most significant aspects of logistics, including: developments in logistics supply chain strategies lean logistics efficient customer response logistics in different countries partnering and strategic alliances re-engineering the logistics function From logistics professionals, consultants, professors and students to managers from different backgrounds who want an appreciation of current trends in the subject, this book is essential reading. About the author: Donald Waters, a past member if the Institute of Logistics and currently a member of the Canadian Association of Logistics Management, has lectured weekly on logistics, operational research and management science, and has brought his academic career to fruition as Professor of Operations Management at the University Calgary, Canada. He is also the author of Operations Management in the Kogan Page Fast Track MBA Series. Features

Strategic Logistics Management - Decision-Making in Times of Great Uncertainty

Strategic Logistics Management - Decision-Making in Times of Great Uncertainty PDF

Author: Heiner Offenbächer

Publisher: GRIN Verlag

Published: 2007-07

Total Pages: 64

ISBN-13: 3638669777

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Seminar paper from the year 2006 in the subject Business economics - Supply, Production, Logistics, grade: 1,0, European Business School - International University Schlo Reichartshausen Oestrich-Winkel (SMI - Supply Management Institute), course: Seminararbeit Logistics and Business Engineering, 75 entries in the bibliography, language: English, abstract: In the light of the ongoing globalization and evolution of today's business world logistics has gained significant visibility and is regarded as a critical link to improved corporate performance. The value of the global logistics market accounted for $591.1 billion in 2005 and is expected to further grow by 22.1% until 2010. Apart from a constant pressure to reduce costs and improve efficiency, logistics increasingly serves as a differentiating feature for products and an important lever for improving customer satisfaction. Coordination with other departments also plays a crucial role. The increasing complexity and dynamics of the business world did not leave logistics unaffected. Key drivers of uncertainty include globalization of supply and customer bases, shortening of product life cycles, increasing competition and more demanding customers. Thus, the challenge for logistics managers nowadays is to constantly balance a need to perform well on hard measures of performance, while responding to a constantly changing environment. With respect to logistics increasing importance for corporate success, reacting to contingencies by crisis management and firefighting is no longer an option. Instead, logistics managers must proactively and strategically plan for the future and prepare for change.