Matakuliah : J0084 / Introduction to Management
and Business
Tahun
: 2007
Versi
:1/3
Pertemuan 26 (Twentysixth Meeting)
Business Expansions
Halaman 1
Learning Outcome
Student should be able to implement effective
business expansion strategies which very
needed to develop investment -> C3
Halaman 2
Learning Outline
• Investment Decision
• Steps of Capital Budgeting Implementation
• Business Merging and Others Restructuring
Forms
• Short Term Investment Decision
Halaman 3
1. Investment Decision
a. How Interest Influence Investment Decision
b. Capital Budget
c. Classification of Capital Expenditure
1) Expansion of existing business
2) Development of new business
3) Investment to asset that will decrease
cost
Halaman 4
2. Steps of Capital Budgeting Implementation
a. To Propose New Project
b. To Estimate Project Cash Flow
c. To Determine If That Project is feasible to
be Done
d. To Implement feasible Project
e. To Monitor Implemented Project
Halaman 5
3. Business Merging and Others Restructuring
Forms
a. Types of Business Merging:
1) Horizontal merger
2) Vertical merger
3) Conglomerate merger
Halaman 6
1) Horizontal merger
First Union Corporation
Bank Bumi Daya
Wanchovia Corporation
Bank EXIM
Halaman 7
2) Vertical merger
Potential
Supplier
Battery
Producer
Automotive
Industry
Potential
Customer
Newspaper
Halaman 8
3) Conglomerate merger
First Union Corporation
Bank Bumi Daya
Aviation Industry
Halaman 9
b. Various Motives of Company To Make
Business Merging:
1) Instant growth
2) Economic scale
3) Managerial Experience
4) Tax profit
Halaman 10
c. Joint Merging Analysis:
1)To Identify potential prospective
business merging
2) To evaluate potential prospective
business merging
3) To decide business merging
Halaman 11
d. Business Merger Procedures
1) To fund business merging
2) To offer bargaining
3) To integrate business
4) To evaluate post business merging
Halaman 12
e. Protection from Take Over
f. Leveraged Buyout
g. Divestation
Halaman 13
4.Short Term Investment Decision:
a. Liquidity Management
b. Accounts Receivable Management
c. Inventory Management
Halaman 14