Explanation Of Two Financial Giant Merger Essay Example | Topics and Well Written Essays - 750 words

Explanation Of Two Financial Giant Merger - Essay Example It is apparent that due to increased local and international stiff competition in the banking sector, many organizations have resorted to mergers. Nevertheless, these merges have to be well planned for and articulated in a manner that would lay a firm foundation for the newly formed organization to maintain competitive advantage (Yates 7). One of such things that must be considered is the applicability of information system. With online banking services being on the increase, banks are very sensitive on how they engage in information system in order to retain and attract new customers. The case of merger between Wells Fargo and Wachovia is no exceptional to the importance of prioritizing on integration of information system in their merger. In fact, having been familiar with purchasing and merging smaller banks and failing institutions especially in 2006, just before the merger with Wachovia took place, Wells Fargo is cited to have had been successful and had steady increase in stock value. In this regard, for such an achievement to take place, information system plays an important role in enhancing the success.... In light of this, it was crucial for the two firms to integrate information system in their merger in order to strengthen their approach on information system matters. Perhaps, one of the firms could have a workforce with proficient information system, but lacking personnel to propel such knowledge to a higher notch while the other could be having ideas of propelling such ideas, but lacking people to propel them. In such a case, integrating information system in the merger would have created a strong information system (Prakken 7). 2. It is apparent that although integration of information system in the merger was crucial and enabled the merger to be successful, difficulties were noted by the two firms. For instance, after being successful in most of its mergers before the merger acquisition of Wachovia, Wells Fargo had been successful in these mergers. The firm was well aware of the challenges of such a merge especially with a firm recording decrease in stock value. In essence, it i s evident when a firm is recording decrease in stock value, either it’s IT or the human resource or both could be less functional. In this regard, there was a challenge of incorporating the information system of Wachovia. This is because it could have been the one that led to decrease in its stock value. However, although there could be some aspects of it that was significant, the effort to identify and incorporate such aspects in the new merger could have been difficult as well. On the other hand, human resource that manages the information is system is very important. Therefore, if the Wachovia’s human resource was incompetent and probably leads to the downfall of the firm, then it is apparent that there were difficulties in incorporating it into the

Quantitative Analysis for Managers Essay Example | Topics and Well Written Essays - 750 words

Quantitative Analysis for Managers - Essay Example This essay describes an allocation of manufacturing overheads and explaines it using an examples. This essay responses to the request for the analyses of the allocation of manufacturing overheads related to two our products. A comprehensive report detailing the allocation basis and possibilities of our two products Rona Loa coffee and Colombian coffee along with their related implications and recommendations are provided for your study. Using activity based costing as the basis for assigning manufacturing overhead cost to products, the researcher established the total amount of manufacturing overhead cost assigned to the Rona Loa coffee and to the Colombian coffee for the year amounts to  £32,900 AND  £7,300 respectively. The amount of manufacturing overhead cost per kilo of the Rona Loa coffee and the Colombian coffee amounts to  £0.33  £3.65 respectively. The unit product cost of one kilo of the Rona Loa coffee and one kilo of the Colombian coffee amounts to  £4.83  £7. 15 respectively. The researcher also calculated costing as the basis for assigning manufacturing overhead cost to products, the total amount of manufacturing overhead cost assigned to the Rona Loa coffee and to the Colombian coffee for the year amounts to  £32,900 AND  £7,300 respectively. For detailed working regarding the calculation of these amounts please refer Appendix A and B. It also provides the reader with the detailed statistics tables and results.... Traditional costing systems therefore can result in significant under-costing and over-costing. However, traditional costing systems are simpler and easier to implement than ABC systems. The use of such a rate enables us to determine the approximate total cost of each job when completed. In recent years increased automation in manufacturing operations has resulted in a trend towards machine hours as the activity base in the calculation. It is believed fluctuations in product costs serve no useful purpose. To avoid such fluctuations, actual overhead rates could be computed on an annual or less-frequent basis. However, if the overhead rate is computed annually based on the actual costs and activity for the year, the manufacturing overhead assigned to any particular job would not be known until the end of the year. Simplistic overhead allocations using a declining labour base cannot be justified, particularly when information processing cost are no longer a barrier to introducing more s ophisticated cost systems (Drury 2004). ABC provides a way to allocate costs more accurately when overhead costs are not incurred at the same rate as direct labor hours. Using ABC means that all the individual activities that are part of a process can be accurately costed. For example in case of our entity it will be possible to accurately determine the cost of each activity involved in processing a coffee from input to final packaging. In this way it will be easy to identify the most and least expensive parts of the process. Process improvement activity could then focus on the most expensive parts of the process. A model could then be constructed showing a comparison between the existing process costs and the redesigned process and its associated costs.