Q2 Flashcards
Analyse the main types of regulation that impact on the employment of people in supply chains in a country of your choice?
- ILO (International Labour Organisation)
- TUPE; UK Labour
(Transfer of Undertakings) (Protection of Employment) - UN Declaration
Discrimination and Equality Employee redundancy and dismissal Working time and staff payment International labour codes and ETI Rights of agency workers Health and safety at work Express contracts of employment Corporate manslaughter
Review the main areas of competition law, that prevent unfair practices in international trading?
Cartels Bid Rigging Collaboration over purchasing Limits on production Price Fixing
Assess the main reason for the regulation of mergers and acquisitions?
The risk that a merger and acquisition can lead to a very larger enterprise that is capable of exploiting its position in in markets, leading to an infringement of competition law. Regulation can be considered in terms of;
Ability to exploit its position Imposing unfair pricing Limiting production The effect of staff and shareholders Making the conclusion of contracts
Assess 5 benefits of using standards published by the International Organisations for Standardisation (ISO) that supports international trade?
A standard can be defined as setting out the requirements, rules, guidelines, specifications, vocabulary, and other aspects that are needed to operate a process. It is often minimum operating guide to best practice. (eg Toy Safety, Energy Management)
Cost Savings Enhanced customer satisfaction Access to new markets Environmental benefits ISO promote globalistaion Prevent disputes over specifications Promote international trade
General Benefits: Clearer communication Reduced waste Higher safety standards Reduced variety Increased competition Reduced trade barriers
Main aspects that are likely to be addressed by regulations covering health and safety in the workplace?
Health and Safety Issues
- Safe buildings, fire exits & ventilation
- Safety equipment and protective clothing
- Handling of chemicals
- Working hours and breaks from operating machinery
- Corporate manslaughter
Health and Safety Process
- Carrying our risk assessments
- Staff involvement and communication
- Clear responsibilities for employees
- Appointed H&S officer
- External Audits & staff H&S committee’s
Reference UK Health and Safety Work Act
Describe 3 areas of regulation, other than health and safety that might impact upon the employment of people in the supply chain?
Discrimination, equality and diversity Redundancy and dismissal TUPE Working time and staff payment International labour code Rights of agency workers Content of express contract of employment
Analyse 5 motives for either a merger or an acquisition between organisations?
- Synergy
- Bargain Buying
- Managerial Motives
- Third Party Pressure
- Economies of scale
- Surplus Funds
- Diversification
- Third Party Pressure
- Managerial Motives
- Complementary resources
- Eliminating inefficiencies
- Industry consolidation
- Lowering financing costs
Explain the purpose of regulating mergers and acquisitions?
CMA - Competition Market Authority
OFT - Office of Fair Trading (ended April 1 2014)
Shareholder protection Competition elements Market Areas Staffing View Communication and Timings
Lloyds/HBOS acquisition example.
Explain the criteria that are commonly applied in the valuation of companies?
Unquoted Companies:
- Before a merger
- When shares as sold
- When shares need to be valued
- When shares are used as collateral
Any company:
- When company re-financing current debts
- When company needs to obtain additional finance
- When the company is being broken up
Financial Statements (P&L, Balance Sheet & Cash Flow) Increased Turnover Gross Profits Operating Profits Value of the order book Levels of gearing Value of fixed assets Reputation P/E Ratio ROCE
Assess the main role of stock exchanges?
Stock exchange primary aim is to provide issuers, intermediaries and investors with attractive, efficient and well-regulated markets in which to raise capital and fulfill investment and trading requirements. Stock exchanges can be split into two main sectors;
Primary Market
Secondary Market
In relation to stock exchange, explain primary and secondary markets?
The primary market is part of the capital market that deals with issuing of new securities. Companies, governments or public sector institutions can obtain funds through the sale of a new stock or bond issues through its primary market.
The secondary market, also called the aftermarket, is the financial market in which previously issued financial instruments such as stock, bonds, options and futures bought and sold. Another frequent usage of ‘secondary market’ is to refer to loans which are sold by a mortgage bank to investors such as other banks and pension funds holders.
What are the typical stages of a merger and acquisition process?
Develop a business case Assembling a project team Evaluating potential targets Initial contact with targets Valuing the target Finalising the deal Integrating Post-deal audit
Discuss the main elements of competition law and their impact on the regulation of supply chain in a legal jurisdiction of your choice?
- Competition law focus on the areas of;
- Abuse of dominant market position
- Anti competitive agreements - Regulatory protection and acts
- Competition Act 1998: governs UK competition law
- Enterprise act 2002: regulates cartels in more detail
- CMA (Competition and Market Authority): They conduct market investigations based on suspicious activity. They replaced the Office of Fair trading in April 1 2014
- What are the monitoring?
- Cartels: an agreement between organisations not to compete with one another
- Relationships with suppliers: Bid rigging, price fixing, limiting production, collaboration over purchasing, market sharing and customer allocation - Other areas governed by Competiton Act 1998:
- Loyalty incentives
- Price Discrimination
- Exclusive Contracts
- New entrants to the market
