Economics Assignment Essay Example | Topics and Well Written Essays - 2250 words

Economics Assignment - Essay Example Based on the fact that within the market place the root of everything litereally comes down to supply and demand, this is altered by monopolistic practices and therefore society tends to disfavor monopolies as practicing on an unfair basis, and creating barriers of entry to firms wishing to enter the market for profit generation, as well as from the perspective of the consumer, being that the monopoly is unfairly regulating prices, by restricting output and therefore is extracting a price without allowing market forces to determine the correct supply and demand balance of the given commodity. Essentially when dealing with a monopoly consumers are at the mercy of the price determination of that monopoly, which they control via total output restriction and subsequent economic welfare reduction. The monopoly comes about when there is little or no competition, normally the latter. The monopoly will always persist based on the barriers to entry for any rival company or concern attempting to enter the market place. Barriers to entry protect a monopoly and at times can even be state sponsored, via legal framework or even finance. The barriers to entry for rival firms include: Legal Ba... Legal Barriers - these take the form of legal framework where a government will only allow a producer to supply a product, for example if one considers the first class mail deliver in the United States which USPS is the only allowed deliverer. Patents - similar to legal barriers due to the legal framework that will support a holder of a patent, although this issue is debatable around the cost of research and development in the patent creation process. A certain school of thought agreeing with the patent barrier, claims government encouraged innovation incentive, whilst others will claim consumer deprivation due to excessive price fixing. Examples would be the pharmaceutical companies that hold patents on medical drugs, Pfizer who manufactures Viagra - they are the patent holders and are therefore the only company entitled to produce and sell the drug. Control of strategic resources - this would entail a holder of mineral rights or mining rights of a commodity that must be present in order to produce the end product. An example is De Beers controlling 90% of the world's diamond production (Wessels, W.J). Natural Barriers - also called economies of scale. This is related to the mere cost of establishment within a given industry. It is too expensive and capital intensive to enter the market on a profitable basis. An example of this would be the various utility companies in any given economy. One can safely deduce that monopolies will continue to exist, as long as there are governments who sponsor such activity, as well as when companies are in the position to be able to create a barrier to entry, via market power or anti competitive behavior, this in turn can be negated by anti trust regulation or competition law. The Economists vs. The

Integrated Marketing communication Assignment Example | Topics and Well Written Essays - 500 words

Integrated Marketing communication - Assignment Example have to be included to create space or new roles and responsibilities brought in by the new concept brought about by the Girls next-door TV show (Clow & Baack, 2012). The external stakeholders include customers, those who watch the TV show and those who are against it. All these people will be affected by the new events because some customers will like the idea and some may not want to be associated with it. The show lovers could be attracted to the Olive Gardens’ restaurants while those who are against the show may decide to cut their link with the restaurants (Clow & Baack, 2012). For casual observers of media, the Sexiest Girls of Olive Garden will appear to be a sponsorship because of several factors. First, the show will feature the name of the restaurant, which to them will mean that it is sponsored by Olive Gardens. Secondly, Olive Garden had not accepted or denied whether it funds the show or not. Therefore, for casual observers of the media, they would ride on the notion that the show is funded by the restaurant. This event is an instance in which damage-control programs were in order. Olive Garden is understood through a brand and image of family, friends and fun. However, despite the fact that Kendra Wilkinson mentioned Olive Garden as a genuine fan and with sincerity, it came as a promotion strategy. This is the damage that the Sexiest Girls of Olive Garden show seems to control. This show is a follow up event of what had already occurred (James, 2007). I agree with Kendra Wilkinson that Olive Garden could afford to appear a little edgy without detracting from its family friendly brand. Olive Garden is not just about family but also about friends and fun. Therefore, appearing edgy would center on the fun part of its brand. Olive Garden will be able to attract the people who watch The Girls Next Door who are not its customers yet. They could join the Olive Garden fraternity as friends or even family because these groups exist among the watchers.

Misconception of Identifying Ethnic Groups by Cultural Elements Essay Example for Free

Misconception of Identifying Ethnic Groups by Cultural Elements Essay Misconception of Identifying Ethnic Groups by Cultural Elements The common misconception in relating ethnicity and culture is to define ethnic groups by cultural elements. Firstly, ethnic group is a category of people which is bound together by common characteristics that differentiate them from other groups. On the other hand, culture is a system of knowledge shared by a relatively large group of people. Culture consists of values, beliefs, religion, experiences, behaviours and traditions acquired by a group of people that is passed down generations by generations (Browaeys Price, 2008). In my essay, I would like to clarify that ethnic groups cannot be defined by their cultural elements with several examples. Commonly, characteristics and traits of an ethnic group is identified by its cultural elements. Elements such as language, religion and customs are used to differentiate a group and another. Specified cultural elements are categorized to represent different types of ethnic groups. However this assumption is not suitable to apply in many situations. It is troublesome to identify ethnic group by cultural elements. This is because the people within an ethnic group does not necessarily possess the identical cultural elements. For instance, the Cham people in Vietnam belong to one ethnic entity, however in different areas this group of people possess different cultural elements. The Cham people in south central of Vietnam and in Mekong Delta have distinctive differences in religion, language and customs. In the south central Vietnam, the Cham practise localized Hinduism and Islam as religion. They speak south central dialect and their writing is originated from a script in Sanskrit. In term of custom, these Cham people are considered matrilineal and practice exogamy. On the contrary, the Cham in Mekong Delta majorly practise Islam. They speak in Mekong Delta dialect and their writing derived from the Jawi script. In their custom, they are loosely matrilineal and practice endogamy(1). This shows that cultural elements are not suitable to determine an ethnic group. People of the same ethnic group may not necessarily practice the same culture. In the study of the Kachin people from Burma, Edmund Leach mentioned â€Å"the mere fact that two groups of people are of different culture does not necessarily imply – as has nearly always been assumed – that they belong to two quite different social systems (Leach 1954: 17)(2). To consider ethnic group as cultural group will fail to address many aspects of ethnic phenomena. Large population of the Kachin people lives in the Kachin Hill in northern Burma’s Kachin State and in neighbouring areas of China and India. They speak different languages and dialects; there is a wide difference in cultures between the same ethnic group in different area. To support this statement, I would like to provide an example; the Malay people who belonged to one ethnic entity in Malaysia are influenced by different customs. Malay people practice two distinct types of customs, the Adat Temenggung and Adat Pepatih. The former is originated from Minangkabau and widely practiced by most of the Malay states. Adat Temenggung emphasizes on patrilineal kinship structure in matters such as inheritance. In contrast, the Adat Pepatih is only practiced in Negeri Sembilan. It emphasizes more on matrilineal kinship structure, in which women gain benefit in matters such as inheritance and marriage (Shuid, Osman Othman, 2006). This depicts that people of the same ethnic group practise various and wide range of customs. Thus, it is difficult to define ethnic group by cultural elements. In the 19th and 20th century, large wave of immigrants from China came to Malaya. Now, Chinese people are the second largest ethnic in Malaysia. Majority of these Chinese are Han Chinese. There is wide spread of Chinese people in every state of Malaysia, espeacially in the town areas. Even though they are grouped as one ethnic entity, their cultural elements varied widely. Most of the local Chinese practise Buddhism and a small number of them have faith in Christianity and Islam. Futhermore, they speak variety of dialects such as Mandarin, Hokkien, Cantonese, Hakka, Teochew and many more. For example, most of the Chinese in Penang speak Hokkien whereas most of the Chinese in Kuala Lumpur speak Cantonese. Thus, the cultural elements of an ethnic are not fixed, the elements varied greatly to the extent that it is difficult to determine an ethnic group by its cultural elements. Besides that, the influence of political and economical circumstances has changes the cultural elements of the people while the ethnic identity remains. As time passes by, people within an ethnic group spread, share, learn and adapt cultures of other ethnic groups. There is the tendency for different cultures to overlapse in a society. For instance, the Chinese immigrants that came to Malaya in the late 15th to 16th century were known as Peranakan Chinese. This group of immigrants consists of merchants, traders, and those who came to escape economic hardships in mainland China. They embraced the Malay customs and cultures. Most of the Peranakan Chinese engaged in intermarriage with the local Malay. However, there are part of Peranakan Chinese people without Malay ancestry. They belong to Chinese ethnic but adopted the combination of Chinese and Malay cultures. The Malay language and cultures are assimilated into their daily lives, however their ethnic and religious origins still remain. These Peranakan Chinese speak Malay language, wear the baju kebaya, a Malay traditional clothing, and developed their cuisine with mainly Malay spices in their every day lives, they still belong to Chinese ethnic (Tan Chee Beng, 1993). Their ethnic identity cannot be determined by merely identifying their cultural elements. In conclusion, I would like to emphasize my point that ethnic groups cannot be defined by their cultural elements. Ethnic groups can hardly be measured by cultural traits as a matter of fact cultural boundaries do no always go accordingly with ethnic boundaries. Cultural traits of an ethnic group is not always fixed, people of the same ethnic group do not necessarily possess the same cultural elements. To determine ones ethnic identity by identifying his or her cultural elements with the typical cultural elements of an ethnic group is not right. The ethnic identity of a person will still remain unchanged even if his cultural elements have changed. As stated by Michael Moerman, â€Å"Someone is Lue by virtue of believing and calling himself Lue and of acting in ways that validate his Lueness† (Moerman, 1965:1219)(3). Ethnic identity can be claimed by one’s self but not by determining its cultural elements. Bibliography Browaeys M. J. , Price R. (2008) Understanding Cross Cultural Management. New York: Pearson Education. Mahdi Shuid, Suzani Osman, Sazlina Othman. (2006) Sejarah Malaysia. Petaling Jaya: Longman . Tan, C. B. (1993). Chinese Peranakan Heritage in Malaysia and Singapore. Kuala Lumpur: Penerbit Fajar Bakti Sdn Bhd. (1)(2)Power Point Slides: What is an ethnic group? Ethnic Troubles Theories of Ethnicity. (3)Reading 1: Ethnic identification in a complex civilization: who are the lue?

Rhetorical Analysis of a The New York Times Article Essay example -- A

The article titled "The man with the snow job" appears in the Opinion Pages, The New York Times. Author, Gail Collins, opens her article with the question: â€Å"Who is to blame for this weather?† which hooks readers’ attention and makes them curious about what they are going to read. In her writing, Collins talks about the current snowstorm in the United States and how it is used for everyone’s advantage. She also points out how government officials such as Arnold Schwarzenegger, Al Gore, George W. Bush, and Barack Obama use the occasion of snowfall for their own purposes. The author borrows images of global warming effects to discuss some controversial problems in the society these days. She applies the following elements to establish the sarcastic tone throughout her article: hyperbole, metaphor, and simile. First, Collins uses hyperbole by repeating the word â€Å"snow† five times in one sentence: â€Å"Chicago’s snowfall was so huge that the news media ran out of things to attach to â€Å"snow† - thundersnow! snowpocalypse! snowmageddon!† (Collins). She consecutively uses three portmanteaus of the word "snow" with increasing stress level to create strong feelings. She wants to emphasize that Chicago is experiencing the most massive snowstorm in the United States, one of the consequences of global warming. This is a circumstance that causes people panic. She then reminds the readers about the blizzard of 1979 which made Mayor Michael Bilandic get â€Å"kicked out of office six weeks later in the Democratic primary.† It seems that she wants to make a connection between the congressman and a snow job. Besides hyperbole, Collins does an excellent job of using metaphors. She uses metaphor from very beginning. The phrase â€Å"snow job† in the title is a coll... ...d we have been suffering for what we have done. Human beings have to be responsible for that. Collins successfully uses the method of satire throughout her article. According to Oxford Dictionary, satire is defined as â€Å"the use of humor, irony, exaggeration, or ridicule to expose and criticize people's stupidity or vices, particularly in the context of contemporary politics and other topical issues.† Humor does play a big role in this article. Government officials take the occasion of snowstorms to build their image in public, attack their opponents. And even author Collins; she uses snow to make her article interesting and attractive. Works Cited Collins, Gail. http://www.nytimes.com/pages/opinion/index.html. 2 February 2011. 8 February 2011 .

Africa&Egypt Essay

Africa is one of the richest continents when it comes to spectacular experiences with nature. Nowhere in the world can one encounter the abundance and variety of wildlife. Africa also delivers a plethora of ecosystems, geographical features and amazing wilderness experiences. Whether it is deserts, rivers, lakes, mountains, jungles, waterfalls, etc. Africa Geography The continent of Africa borders the southern half of the Mediterranean Sea. The Atlantic Ocean is to the west and the Indian Ocean is to the Southeast. Africa stretches well south of the equator to cover more than 12 million square miles making Africa the world’s second largest continent. Africa is also the world’s second most populous continent. Africa is one of the most diverse places on the planet with a wide variety of terrain, wildlife, and climates. It is the second largest and second most populous continent. Major Cities The highest point in Africa is Mount Kilimanjaro in Tanzania at 5895 meters high. The lowest point is Lake Asal in Djibouti at 153 meters below sea level. The largest country in Africa is Sudan, the smallest is The Seychelles. The most populated country is Nigeria and the largest city is Cairo in Egypt. The largest lake in Africa is Lake Victoria and the  longest river is The Nile River, which is also the longest river in the world. Africa is rich with varied wildlife including elephants, penguins, lions, cheetahs, seals, giraffes, gorillas, crocodiles, and hippos. African languages are varied with more than 1000 languages spoken across the continent. The Suez Canal divides Africa from Europe. The Sahara Desert The Sahara is larger than the US. Temperatures can reach as high as 130 and some areas go 10 years without rain. A few areas have grasses that can support animals. For thousands of years people have carried goods and ideas across the Sahara. The Kalahari Desert The Kalahari is not as dry as the Sahara. Grasses and wild melon grow and animals are able to graze. The Namib Desert The Namib Desert is one of the driest places on Earth. Trees and get water from mists that drift from the Ocean. Still animals and people find ways to survive in this area. Desertification: Turning semi desert land into desert Desertification can happen by natural actions: drought or by human actions such as cutting down forest for cooking fuel or to make farmland, overgrazing of shrubs and grasses by cattle and goats. With no grass or tree roots, the topsoil blows away and the desert advances. Natural Resources The most abundant natural resources in Africa are gold, diamonds, copper, cobalt, and oil. However, the distribution of resources is uneven causing wealth in some counties and poverty in others.

Does America Need Labor Unions Today - 2811 Words

Alyssa Barker Sharon Kelly English 102 Section 401 November 24, 2012 Does America Need Labor Unions Today? President John F. Kennedy once said, â€Å"The American Labor Movement has consistently demonstrated its devotion to the public interest. It is, and has been, good for all Americans.† Organized labor has a goal of helping workers get what they deserve in all aspects of their jobs such as salary, benefits, hours, working conditions, and so on. There are†¦show more content†¦They had to remain neutral. But unfortunately, this is only in an ideal world. According to Pamela Prah, another reason workers are not seeking involvement in unions is that they are afraid of losing their jobs. In her article about the future of labor unions, Prah quotes Carol Pier, a labor rights and trade researcher for the Human Rights Watch, as saying, â€Å"U.S. labor laws contain weak penalties, are riddled with loopholes and are not effectively enforced.† This means that employers who fire workers for joining unions could either get away with it or only have to face a weak penalty. There has been a recent controversy over wrongful termination involving the retail giant, Walmart. Walmart is known for openly avoiding union organization and they have been accused of strategically firing union members throughout the country (Vrba). Walmart denies firing workers because of union involvement but the case will eventually go to court (Vrba). In cases such as this, workers could unjustly lose their jobs and so this prevents workers from acting and joining a union. It is easy to see why companies do not want their workers to join unions. If workers join a labor union, the company will be split in half: the union vs the employer. Companies may be forced to change the way they run the things such as how much they pay their employees, how many benefits they have to provide, the safety requirements for theShow MoreRelatedEssay on Unions, Bad for America685 Words   |  3 PagesUnionism, Bad for America Unionism is the concept that traditionally business, especially big businesses are inherently going to exploit their employees. Therefore, in order to protect themselves, the workers form organizations called unions, in which all laborers who work at a certain craft, or in a certain industry band together. By this process of â€Å"joining forces†, the unions gain power in numbers. Unions traditionally try to protect employee interests by negotiating with employers for wagesRead More Labor Unions Essays1096 Words   |  5 Pages In this essay I’ll write about union membership, membership trends, the two types and levels, and the importance of unions. I’ll also discuss some of the negative sides of unionization in corporate America today. Labor unions are groups or clubs of workers and employees who bond together to get good conditions, fair pay, and fair hours for their labor. These unions are usually joined together, and most unions in America are some branch of the largest labor union organization in the United StatesRead MorePublic policy help shaped the world we live in today. It is formed at the federal level to resolve600 Words   |  3 PagesPublic policy help shaped the world we live in today. It is formed at the federal level to resolve problems created throughout the United States to standardize the way business can be conducted and to protect the working people, with their jobs, with their wages, and the conditions they work in. It provides the solution to the problems we faced in America and keeps our government involved with all the citizens of the United States of America. Public policy is created by the American system ofRead MoreLabor Unions And The Industrial Revolution1582 Words   |  7 Pages The topic of Labor Unions has been the focus of many political debates in recent years, with these discussions having people advocate for and against the unions. Labor Unions are an organization that represent a collective group of employees to protect and further theirs rights and interests. Labor Unions were first introduced in the eighteenth century with increasing numbers around the United States and the world, but unfortunately during the past decade these numbers have drastically decreasedRead MoreThe Topic Of Labor Unions Has Been The Focus Of Many Political1580 Words   |  7 PagesThe topic of labor unions has been the focus of many political debates in recent years, with these discussions having people advocate for and against the unions. Labor unions are organizations that represent a collective group of employees to protect and further their rights and interests. Labor unions were first introduced in the eighteenth century with increasing numbers around the United Stat es and the world, but unfortunately during the past decade, these numbers have drastically decreased. ResultingRead MoreThe Rise Of The Big Business Transformed Rural America981 Words   |  4 Pages The rise of the Big Business transformed rural America to an industrialized urban nation that became to be known as the Gilded Age. During this time most Americans worked 10 to 16 hour shifts, 6 days out of the week with a wage that was below the poverty line. Even though they worked extremely inhumane hour shifts, it was barely enough for them and their families to survive. During this era men, women, and children performed harsh labor in factories and mills until their bodies could bear no moreRead MoreCurrent Hr Trends805 Words   |  4 Pagesimpact on labor unions as a result of outsourcing. The trends in union membership, the growth in union membership, the process for organizing a labor union to enter a nonunion company, the impact the current legal environment has on labor uni ons and companies, the labor movement and the affect of outsourcing, the services HR is outsourcing will be evaluated and the effect HR outsourcing has on organized labor in companies will also be evaluated. Current HR Trends Organized labor has lost manyRead MoreMiddle Class Dillusionment Essay1472 Words   |  6 Pagesprogressivism movement. The progressivism movement ties in a lot with our society today and shows how history does indeed repeat itself. Mowry describes the good, and bad of progressivism, but emphasizes the bad. Mowry is really trying to exhibit the differences between capitalism and socialism in his essay and explain why progressivism is not good for the well being and future of America, which can be proven today but our economic instability and division as a nation. More importantly however MowryRead MoreThe History of the Labor Movement up to the Present1565 Words   |  7 Pageshistory of the Labor Movement up to the present. Labor Unions were made to help the worker. The first know labor union was in New York in 1768 when New York Journeymen protested wage agreements (History.com Staff). Then later in 1794 a bunch of journeymen otherwise known as shoemakers formed together to form what was the first known Union (History.com Staff). Labor Unions actually started with skilled workers. Not many factory workers were part of a union. One of the most famous Labor Unions is knownRead MoreThe Strike Of Foodservice Workers At Unc Chapel Hill1587 Words   |  7 PagesThe 1969 strike of foodservice workers at UNC Chapel Hill was a labor dispute involving lunch ladies, less than 20 women of color, working in a college cafeteria serving the large student population. This unlikely group of women and their labor dispute had a much more important effect on the larger perspective of not only work conditions and wages for women and African Americans, but the macro level of civil rights on college campuses in the south d uring the civil rights movement. The efforts of

The Overall Motives Of Banks Mergers And Acquisition - Free Essay Example

Sample details Pages: 16 Words: 4871 Downloads: 6 Date added: 2017/06/26 Category Economics Essay Type Research paper Did you like this example? Chapter One 1.0 Introduction Over the years, the world have witnessed growth and development in the business world and will still record a lot more due to rapid technological growth in recent times. Merger and Acquisitions (MA) has contributed immensely to the worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s economic development and also helped indirectly to create stability in some industries in both developing and developed nations. A merger is usually the amalgamation of two or more companies running commercial activities. Don’t waste time! Our writers will create an original "The Overall Motives Of Banks Mergers And Acquisition" essay for you Create order On the other hand, acquisition is where one company takes over another and the identity of the other company can be eradicated as it becomes part of a larger company. Most MAs between companies have occurred as a result of achieving economies of scale and penetrate into new markets. Many bank employees regard MA as a threat to their jobs as the period will record shareholders demand for reduction of workforce. It will also be problematic to execute Human resource management with, and the environment of MA due to the changes that will be recorded in the procedures and practices in the new company. The vast majority of mergers acquisitions research is correctional and focuses on publicly traded corporate entities, using quantitative secondary data made available by large number of databases (Meglio and Risberg, 2010). Background to the Study A significant change has been witnessed in the Nigerian banking sector over the years, in respect to ownership structure, number of institutions and locations, as well as the profundity of operations. There are some numbers of effects when companies merge or when one company acquires another company (Cigola and Modesti, 2008). This include reduced expense in production and management cost, deriving It was observed that downsizing, mergers, and acquisitions are examples of the radical organizational responses to increase global completion, improvements in technology, and government deregulation (Shook and Roth, 2010). The changes so far recorded have been predisposed mostly by the challenges posed by issues as globalization, deregulation of the financial sector, and the implementation of a decision making and prudential requirements that are in line with international standards. This is why some companies may deliberately choose to merge with any other readily available in its line of business. The benefits in most cases are much more than the losses if any is recorded. Mergers have also had effects on employees as the process usually leads to an upward or downward review of wages and salaries. There are also cases where the MA leads to downsizing of workforce as new technological operation techniques will be adopted and there will be less needed for human resource compared to the former way of operation. Bank Mergers and Acquisition A significant amount of research has been done to ascertain the success rate of MAs in banks to be able to draw conclusion on its profitability and efficiency (Behr and Heid, 2011). It was pointed out that despite the considerable prospective U.S banking mergers in the 1980s; many of them were not successful in achieving their aim due to the cost of efficiency. Banks have diverse reasons why they merge which relates to the business motives behind it such as managerial incentives (Wood, 2006). The banking industry was partly strengthened through MA as they use the merged assets to build a strong capital base for the bank and more assets that have appreciated value. Soludo (2004) enumerated the fundamental problems of the banks, particularly those classified as unsound, have been identified to include; persistent illiquidity, poor assets quality and unprofitable operations and further mentioned that their major problems also included weak governance , weak capital base, late publicat ions of annual reports, gross insider abuses and over dependence on public sector deposits. Many literatures indicates that banking sector reforms in Nigeria propelled by the need to deepen the financial sector and reposition for growth, to become integrated into the global financial design; and involve a banking sector that is consulting with regional integration requirement and international best practices (Somoye, 2010). Nigerian Banking Industry In the recent past, Nigerian banks have adopted poles apart strategies to achieve a predetermined least amount capital base during the banking sector consolidation in the year 2004 and 2005 which was put at twenty five billion Naira (Alao, 2010). This process saw a lot of banks in Nigeria to source for funds from all forms of businesses to meet up the demand and at a point, it was observed mergers or acquisition of smaller banks was the only way out of the regulation. MAs is a global phenomenon with an estimated four thousand deals taking place each year. Elumilade (2010) mentioned that banks are the linchpin of the economy of any country. He mentioned that banks in any every country play a vital position in respect to the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial system and they could be regarded as vital agents for development process. Banks also are relevant through financial intermediation services and promote economic growth (Afolabi, 2004). According to Ibru (2006), there was a n embryonic phase of the Nigerian banking industry which began with the first set of banks started with the African banking corporation which had its headquarter in south Africa and was pioneering by the Nigerian banking system in 1892. In 1894 the British bank for West Africa which now known as the first bank while union bank of Nigeria plc formerly known as the Barclays D.C.O started in 1925. The British and French bank now united bank for Africa was established in 1949. Many other indigenous banks were established and they ushered in the era that saw the constant monopoly erstwhile enjoyed by the foreign owned banks (CBN, 2008) Central Bank of Nigeria and Market Recapitalization The Central Bank of Nigeria (CBN) in 2004 introduced a policy that made it mandatory for recapitalization to be carried out in the banking industry. This was mentioned as the fourth phase of the banks restructuring scheme and all banks should comply strictly before the end of 2005 (Afolabi, 2004). This led the emergence of twenty five consolidated banks and the process encouraged mergers and acquisition in many cases. They were 89 members of the Nigerian banking industry (NBI) prior to the recapitalization. It was recorded that the CBN in 2009 provided two hundred billion Naira to four undercapitalized banks after an audit was carried out which reported that they could face liquidity problems and needed funds to continue normal operations. In addition, the CBN decided to stabilize the system and return confidence to the markets and investors, an addition injection of six hundred and twenty billion naira of liquidity into the banking sector and there is a replacement of leadership i n eight banks which has given sector a little more balanced than its formal position (Sanusi, 2010). Relevance of the Research After the bank consolidation in 2005, it was mentioned in a CBN report that UBA Plc and First Bank of Nigeria have been effectively competing with multinationals in various aspects of international business. CBN Report (2007) also revealed that some Nigerian banks after the consolidation were able to register their presence in the developed countries like United States of America and United Kingdom as participate in foreign market areas of funds transfer and loans servicing. Mergers and acquisitions have for long attracted interest of many researchers in academics in trying to predict the outcomes of the deals (Meglio and Risberg, 2010). They further explained that the inconsistency in some research findings has necessitated the need for more integrative frameworks to grasp the complete phenomenon. Also, the researchersà ¢Ã¢â€š ¬Ã¢â€ž ¢ opinion aiming to explain mergers and acquisition outcomes in general have not been able to successfully develop and test a grand theory about MAs . Aim of the Study This research aims to look into the overall motives of banks mergers and acquisition as well as its impact on the Nigerian economy. Research Questions and Objectives Research Questions What are the implications of bank mergers and acquisition? What are the motives behind bank merger and acquisition? How does merger and acquisition impact on efficiency? How can merger and acquisition effect competition in the Nigerian banking sector? Research Objectives To critically evaluate mergers and acquisition in the banking sector To analyse the impact of merger and acquisition in the Nigerian banking sector To evaluate the success of UBA merger and acquisition To identify the success factors of UBA in Nigeria Banking sector Plan of the study The plan of this work has been structured to begin by providing a background of the area under discussion and justifying the need for the study in the first chapter. This would be immediate followed by review of literatures relating to similar issues and traditional views of mergers and acquisition in chapter two. The research method which will highlight how I intend to gather data will be presented in the third chapter. The data analysis and findings will be presented and discussed in chapters four which will be followed by the summary, conclusion and recommendation in chapter five. Summary This chapter gives an insight into the subject matter by examining the different related aspects of the subject that will contribute to the major focus of the other chapters. It is a known fact that MA has positive and negative impacts in any sector or environment where it has occurred and this will give us the opportunity to draw the impact of competition that will bring in the absence of a monopoly situation. Chapter Two Literature Review Recent studies show that the bank recapitalization process that took place in Nigeria in 2005 has been of great importance to the sector. Merger and acquisition across the world have had positive impact in the strength of the firm in most cases. The banking sector in Nigeria across the world has had course to experience MA in some cases and this helped them in restricting in various forms. The UBA merger with STB was a success as the experience of the first generation bank and agility of a new generation bank was put together to produce a stronger UBA Plc. History of Mergers and Acquisitions MA history time and again have surprises many people when they realise that the concept of MA are not new, and on the converse they are progressing from the early years. It helps us to understand the evolution of the concepts in the world. The economic watch (2011) mentioned that there are five major stages of MA which discussed as wave period. Each of these waves recorded its progress associated with it and has a technological support that gave rise to the era. Past experience has also shown that MA are triggered by economic factors. The period between (1897 1904) saw a lot of horizontal mergers as companies which enjoyed monopolistic competition over their area of production such as electricity and transcontinental railroads merging with others in same area. It mainly occurred between heavy manufacturing industries at that time. A lot of mergers failed towards the end of this phase as they could not get the desired efficiency and the state of world economy as at 1903 as well as the stock market crash on 1904 did not help matters. Chu (2010) reflected to the mergers in Canadian banks in 1889 to 1926 which could be referred to as both the first and second wave period. He explained that economist has not fully explored the mechanisms through which financial developments affects economic growths. Canadaà ¢Ã¢â€š ¬Ã¢â€ž ¢s growth trough MA under the period was under study was also associated with higher banking concentration and a wider branch network. Kling (2006) also agreed that the German universal system emerged around 1914 as the big banks in Berlin acquired smaller banks. This development supported industrial enterprise and external growth through industrial enterprise. The second wave or MA was recorded between 1916 and 1929 which were more between oligopolies as that of monopolies in the first era. The post world war economic boom after the First World War supported these mergers. Also, government policies as at that time started to encouraged compa nies to work together and technological innovation in areas of transportation provided the needed for such MA. Most of the mergers at this time were mainly horizontal or conglomerate in nature. Producers of key metals, petroleum products, food products, chemicals and transport equipments were mainly involved in the mergers of this period. Investment also supported very in merger as at the period but the great depression of 1929 and the stock market crash in same year brought period to an end. There were mainly conglomerate mergers as at 1965 to 1969 which was stimulated by sky-scraping stock prices, interest rates, and stringent enforcement of antitrust law in the third wave merger. This period did not end well as government were becoming too harsh towards them end of the period but a few companies did well in the 1970s. The fourth merger wave was within 1981 to 1989 recorded mergers in some industries such as airline, banking, oil and gas and pharmaceutical. There many cases of foreign takeovers and the period ended with anti takeover laws, reforms in financial institution and the gulf war. Kim and white (1998) analyzed almost all commercial banks mergers in the united states between 1985 and 1991, and found out evidence of decreasing cost efficiencies in most mergers, except for mergers between very large financial institutions. The small and medium commercial banks decreased efficiencies after merger. Globalization, stock market boom and deregulation in the telecommunication, banking and petroleum industries were major characteristics of the fifth merger. Most of the mergers at this time were geared towards profit maximization but the burst of the stock bubble also ended this era. Huyghebaert and Luypaert (2009) states that in the year 2007 alone, there almost forty thousand deals announced in respect mergers and acquisitions across the world. This accounted for an aggregate value deal value of one thousand, three hundred and forty-five billion dollar s. Ernst and Young (1995) also identified the alternatives of acquisition: financial, geographic, and symbiotic and absorption acquisitions. In the case of financial is where a company is bought into a holding company for the purpose of restructuring. The main objectives for the acquisition are mainly to eradication, reduce cost and improved efficiency. There are so many firms with ideas to change the world of business but lack the financial muscle to improve in research and development and or invest more into the existing findings. Any business speculator that gets hold of this will ensure that these ideas see the light of the day by an outright acquisition so as to finance the company for growth. Geographic acquisitions are intended to expand the acquirerà ¢Ã¢â€š ¬Ã¢â€ž ¢s core business across new frontiers. The term emerging markets rings a bell in business as every investor want to sell products and services where there is a ready market with a thriving huge population. In t he recent years, most businesses have moved their production sites to Asia where there cheap labour and n emerging market for the product. Some parts of Africa where there reasonable levels of stability have also seen to be good to expand into as a new frontier. The sales of mobile phone handsets the Nigerian market could be seen as a good example a new frontier for Chinese or Japanese phone manufacturers. Companies merge with others in a different location just to get access to the new location as well. Symbolic acquisitions are described as where newly acquired products and competencies are absorbed into the parents business but the acquired company retains a level of independence, absorption acquisition imply that the two businesses are fully integrated, with one effectively loosing identity. This is an effective business strategy as the name of the former company is like an asset and most customers may not continue with the product or services if the name is changed. The case of Tata acquiring land rover in 2009 is a suitable case where the name Tata is known for production of trucks and military vehicles, but land rover is known for luxury cars and as such the change of the name perceived with strength should remain to keep the market moving smooth. The case of absorption acquisition as mentioned before where one companies gradually losses identity could be seen in the case if Safeway supermarket and Morrisonà ¢Ã¢â€š ¬Ã¢â€ž ¢s supermarket where Safeway gradually faded away. Chen and Tan (2011) examined how the deregulation of financial services industry has intensified in some European countries a significant portion of business handled by banks. This is because the deregulated banks have more financial capacity to manage and finance businesses with a confidence of measuring up at the end of the day. There were two hundred and thirteen mergers during 1989 to 2004 with the acquirer of a European bank and the target of an insurance company. This was because the growth and success rate of mergers was lucidly clear to business world at time, in that firms were on the lookout for a similar thriving company that they could merge resource and ideas together to achieve economies of scale and reduced overhead cost. Koetter (2007) was of the view that prior to the merger targets perform poorly compared to acquirers in many merger cases. The increasing efficiency of a firm reduces the hazards of takeovers but increases the risk if bank failures. Therefore, the probability of takeovers and failures is influence significantly by efficiency. Imala (2005) identified eight reasons for merger and acquisitions in the financial service sector. The identified reason are in relation cost savings attributed to economies of scale as well as more efficient allocation of resources; revenue enhancement which is derived from the impact of consolidation on bank size, scope, and overall market power; risk reduction due to change in organisational f ocus and efficient organizational structure; new development which imposes a high fixed cost and need to spread these costs across a large customer base; the advent of deregulation which removed many important legal and regulatory barriers; globalisation which engender a more globally integrated financial service and geographical expansion of banking operations; financial stability characterised by the smooth functioning of various components of the financial system, with each component resilient to shock; shareholders pressure on management to improve profit margins and returns on investment made possibly by new and powerful shareholders blocks. Nigerian Banking Environment According to Adegbaju (2007), there have been remarkable developments in the Nigerian banking sector over the years. Mergers and acquisition in Nigerian banks to took place in 2004 / 2005 commenced after an announcement by the CBN that all commercial banks in Nigeria should upgrade their minimum capital base too twenty five billion Naira before the end of December 2005. Umoren, (2009) examined the benefits of the fortification and consolidation of the Nigerian banking system as it could be seen as the first phase where by such reforms are made to help to guarantee a well built and reliable banking sector that is also considered to be diversified to ensure depositors safety. The role of money in the development of any nation cannot be over emphasized and the Nigerian economy needs to be capable and competitive in the African continent particular as well as the world in general. Madabueze (2008) mentioned that the recent reforms in Nigeria banking sector which required the b anks to source for high capital base to the tune of twenty five billion naira which is put at approximately one hundred and ninety million dollars, recorded a sharp drop down of the number of banks from eighty-nine to less than twenty-four currently in operation. He further argued that this will enable the Nigerian banks to become relevant and active players in the international scene, helping the image of Nigeria as a financial capital of some sort of (china of Africa). The Nigerian economic policy was regarded as an economically fragile policy some decades before then but the recapitalization process has enable two recent developments which is a positive message to the international community. The CBN governor at that time, prof. Charles Soludo explained that before the recapitalization commenced, the Nigerian banks have not played their role in economic development because of their feeble and frail capital base and as such, there was a great need to strengthen them through the co nsolidation process. Madabueze (2007) opined that the crusade requesting the CBN to be flexible with their position of recapitalization did not involve bankers alone as members of the national assembly in Nigeria also requested the CBN to reverse its decision of recapitalization to the amount twenty five billion naira. Is was further observed as he mentioned that members of the public were completely against the move as they felt the process will worsen the situation and many of them started making panic withdrawals from their accounts. On the other hand, the CBN also had its fair supporters which included the former president of the federal republic of Nigeria, Olusegun Obasanjo who publicly showed his support for the twenty five billion capital base for banks, the Manufacturers association of Nigeria (MAN) who were completely in support of the policy claiming that it will enlarge the national economic base and help to position the real sector. Ogundele (2008) agreed that mer gers are essentially the amalgamation of two or more companies that of all or the parties must be in existence legally and the surviving company continues to function in its originally registered name. In some case, merged companies find themselves out of business and leave its assets and liabilities to the acquiring company. Williams and Rao (2006) focus on mergers and acquisition because they are events that correspond to considerable changes in the asset structure of the bank. Commercial bank faces different risk, capital structure and regulatory environments as against firms that have been traditionally studied for governance effects and managerial risk aversion. Owokalade (2006) observed the definition of mergers as posited by the company and allied matters act decree of 1990 that any amalgamation of the undertakings of two or more companies or the undertaking of two or more companies and one or more bodies corporate. He emphasized that a form of dealings combination whereby two or more companies join collectively to become one; being voluntary liquidated by having it interest taken by the other and its shareholders becoming shareholders in the blown up existing company. Kurfi (2010) is of the view that mergers as a principle of the combination of two or more companies that translate same business purposes and agree to come together and decide whichever the given name of one of the companies or absolutely take a new name. He further mentioned that amalgamation is another word for merger. Mergers usually occur between firms of almost same size and are usually friendly. In the case of Stanbic bank and IBTC bank, they arrive at a name StanbicIBTC bank plc after their merger and the resultant name was due to the friendship earlier involved and almost same size of the banks. Kazmi (2006) grouped merger into four: horizontal, vertical concentric and conglomerate mergers. Further explanation revealed that horizontal mergers takes place where there is a combination of two or more firms in the same business, or an organisation engaged in certain aspects of the production and marketing process. When there is a merger of two or more firms but necessary in the same business which might be complementary in supply of materials or marketing is referred to as a vertical merger. The concentric merger takes place when there is a combination of two or more firms related to each other in line of function, customer group or alternative technologies used. Conglomerate merger occurs when there is a combination of two or more firms that are unrelated in customer function, customer group, and alternative technologies. There are situations where a company gets involved in all the above listed forms of mergers. For example, HP a computer and printers giant has merged with Compaq recently and before then acquire Apollo computers which related, acquired Agilent technologies which were into chemicals and medical business, acquired Mercury Interactive wh ich was a software company. The UBA Merger Mergers and acquisition is simply a different approach encourage survival of the fittest is to give rise to a stronger, more efficient, better structure and skilled industry. The Guardian Newspaper reported in 2005 the UBA merger started with separate meetings where that boards of directors of UBA and Standard Trust Bank Plc accepted the arrangement for a union of both financial institutions. The bank aimed to become the biggest bank in West African and one of the largest in Africa. When they considered the assets of both banks before the merger, it was observed that had a formidable asset base after accessing their portfolios at that time and when is been concretised, they could customers from all sectors of the economy. It has over 100 branches spread out strategically across the country in what is described as the largest truly online real-time banking network in sub-Saharan Africa. It is often referred to as Nigerias neighbourhood bank. This derives from its national orienta tion in terms of geographic spread and continuing national expansion. Wheelen and Hunger (2008) confirmed that UBA the former Trade bank and Citi express bank because the firms were different in sizes and as such they can either be friendly or hostile. Todayà ¢Ã¢â€š ¬Ã¢â€ž ¢s UBA is a merger between two predecessors banks, legacy UBA and Standard Trust Bank (STB) which were ranked third and fifth in size respectively prior to the 2005 CBN reform and consolidation programme. It was a huge success as the ability to anticipate industry trends, coupled with the banks agility, enabled them to be the first successful merger in the history of Nigerian banking industry, thus creating the current UBA plc which its management rates as the largest financial services institution on West Africa. As the economies of Nigeria and Africa continues to improve, following the established path of the emerging market; i.e. increased political stability, improved government finances, growing dom estic consumer demand, high commodity prices and significant improvement in the economic indicators, the UBA is well positioned as a warrant on the African renaissance story. The presence of UBA in all commercial centres and major cities in Nigeria and Ghana has earned the bank the nickname: the neighbourhood bank. This appellation ties in with the UBA brand promise. à ¢Ã¢â€š ¬Ã…“The wise choiceà ¢Ã¢â€š ¬? and guides our retail distribution strategy which enable us to deliver exactly should be expected by both potential and existing customers of the bank in respect to proximity, choice, convenience and customization. UBA is a bank that is operating out of two of the most vibrant economies in the sub region; Nigeria and Ghana, the new |UBA combines the financial strength of fifty-seven year UBA and the young , innovative and technology driven dynamism of the then STB. UBA has maintained a consistent and solid financial performance in its forty-five year history since it beg an business in 1961. The bank has record history of leading and pioneering innovations in Nigerian financial sector. It is the first ever and only Nigerian bank to surpass the one trillion balance sheet size with contingents inclusive. It is the only sub-Saharan African bank excluding republic of South Africa that has a branch in New York, USA. UBA was ranked the number one bank in Nigeria in 2007, and bank of the year award (Thisday, 2007). This was due to the banks outstanding performance in the banking sector. Euromoney (2000) confirmed that UBA was the best domestic bank in Nigeria and was the first among international banks to be registered under Nigerian law. The bank has received excellence credit ratings both short and long term, global credit rating (SA) AA+ and A+ in 2005.UBA is the first Nigerian bank to offer an IPO following its listing on the Nigerian stock exchange in 1970. UBA was the first Nigerian bank to introduce a Cheque Guarantee Scheme known as the UBACA RD in 1986. It was the first bank to introduce the Nigerian Government Bond index in 2006. It was also the only Nigerian company with the GDR programme. The GDR is a negotiable certificate representing ownership of shares. They are quoted and traded in US dollars and the dividends are paid in same currency. It is specially designed to facilitate the purchase, holding and sale of non US securities by foreign investor. This GDR programme enables foreign institutional investors to hold and trade UBA shares without having to expatriate funds into Nigeria. This Depositary Receipt (GDR) is preferred by some investors who are unable to hold Nigerian securities for compliance reasons or due to a lack of the appropriate infrastructure for holding an ordinary share. The GDR also trade, clear and settle according to international market conventions rather than those prevalent in Nigeria (UBA Report, 2008) West Africa and indeed everywhere the bank has presence. It is simple, elegant, vib rant and memorable, combining the mustard seed of legacy STB and the typographic execution of the letters UBA, predominantly in red and white. During the period of the former standard trust bank plc (STB Plc) acquired 27.34% of the United Bank for Africa Plc (UBA plc) and this transaction resulted not a merger between the two banks, whereby all assets and liabilities of standard trust bank Plc were transferred to UBA Plc. The entire share capital of STB was cancelled and STB was dissolved without being wound up and the shareholders of STB were allotted UBA shares.