INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

Post Graduate Programme in Management

Course Outline

Course Code and Course Title Mergers Acquisitions Joint Ventures and
Corporate Growth
Course type Compulsory/Elective
Pre-requisites (if any)
Course Credit 3
Total no. of sessions 30
Session Duration 60 Minutes
Term VI
Year and Batch 2017-18 PGP20
Sections (if any) 1

Instructor(s) Prof P Rameshan/Rajesh Srinivas Upadhyayula

Contact Details 0495-2909431/0495-2809432
Office Block-3 Room-11 IIM-K/Block-3 Room-12
Consultation Hours Appointment by email

Introduction
Over the last decade, there have been significant changes in the competitive environment of firms.
Enhanced movement of capital and goods, increased communication facilities, reduced
transportation costs, technological advancements has led to reduced time to market for firms
globally. Firms were evaluating their competitive strategies on a continuous basis. The entrepreneur
in the firm is exploring or advancing new organizational forms (equity or alliance arrangements) or
innovating in the current organizational forms to enhance competitive advantage or capabilities of
firms.

This course would expose students to various modes of corporate growth available with a special
focus on mergers and acquisitions from a strategic perspective.

Learning Outcomes/Course Objectives

o To develop an understanding of frameworks and tools available to evaluate corporate
growth decisions especially mergers and acquisitions and diversifications
o To appreciate the key success factors in both identification, structuring and management of
mergers, acquisitions, diversifications and other growth strategies

Textbooks and Learning Materials.

Text Book(s)
None
Reference Book(s)
Applied Mergers and Acqusitions by Robert E Bruner, Wiley Publications
Additional Reading(s)

Technology and Software (if any)

Other Resources (Journals, Internet Websites) (if any)

Pedagogy Used/Learning Process
This course would be thought through a combination of readings, case discussions, group learnings
and lectures with intent to cover varied perspectives.
Evaluation Components/Assessment of Student Learning

Assessment Tool Percentage Description

Quizzes
End term Exam
Class Participation (Case
Analysis & Class Exercises)
Case Studies / Assignments
20% The Quizzes are meant to test the
conceptual understanding of
various concepts learnt in the
course
35% This would test conceptual
understanding along with
application of these conceptual
understanding in the context of
inorganic and organic growth
choices available to a firm
20% This test the individual
contribution of the students as
well as brings out various
perspectives, arguments and
counter arguments across a range
of corporate growth decisions in
an organization
25% This facilitates students to
demonstrate the ability to
integrate the information and the
skills accumulated in their
course through a cohesive group
or teamwork. This enables
participants to evolve
recommendation through
consensus..

Session Plan
Session Topic Case / Readings
No
Module1: Growth Strategy- Diversification
1 Course Introduction and • Read Article: Corporate Diversification by
Diversification Cynthia A Montgomery, Journal Of
Economic Perspectives, Volume8, Number 3,
1994
• Read Article: Note on Diversification as a
strategy (HBS, 9-328-129, June, 1986)
• Read Case: Asahi Glass Co.: Diversification
Strategy , HBS Product No 794113-PDF-
ENG
2 Related Diversification • Read Case: Fisdap: The Nursing
Opportunity, NACRA, Product
number:NA0317-PDF-ENG
• Read HBS Article: Strategies of related
diversification by Bharat N Anand, HBS-9-
705-481, 2005
• Read Article: Firm resources and sustained
competitive advantage, Barney J, Journal of
Management 1991
3 Conglomerates/Unrelated • Read Case: Tyco International, HBS, Produc
diversification 798061-PDF-ENG
• Read HBS Article: Strategies of unrelated
diversification by Bharat N Anand &
Samhita Jayanti, HBS-9-705-480, 2005
4 LBOs • Read Article: Conglomerates and LBO
Associations: A comparison of
organizational forms by Baker G and Cyntia
Montgomery, 2009
• Read Case: Endo Pharmaceuticals (A): From
LBO to …( HBS: 806064-PDF-ENG)
5 Diversification in emerging • Read Case: Vehbi Koc and the Making of
markets Turkey's Largest Business Group, HBS
Product number: 811081-PDF-ENG
• Read article: Global Strategy lessons from
Japanese and Korean Business Groups, by
Tu, Kim & Sullivan, HBR Product Number-
R0812C-PDF-ENG
Module2: Mergers and Acquisitions
6 Basics of Mergers and • Read: A note on Mergers and Acquisitions
Acquisitions and Valuation.
• Read: Not all M&A are alike and that matters
• Read: Business Valuation Standard
Approaches and Applications
• Read Case: Mercury Athletic Footwear:
Valuing the Opportunity
7 Estimation of Synergies • Read: When to ally and when to acquire
• Read: Business Valuation Standard
Approaches and Applications
• Read Case: HP-Compaq (A)
(UV3981-PDF-ENG) and HP-Compaq (B)
(UV3982-PDF-ENG
8 Brand Valuation • Read Case: Tata Tea Limited (A)
• Read Case: Tata Tea Limited (B)
• Read Article: Brand Valuation Methodology:
A Simple Example
9 Stock or Cash • Read HBR Article: Stock or Cash?: The trade
offs for buyers and sellers in Mergers and
Acquisitions by Alfred Rappaport and Mark
Sirower
• Read Article: Evaluating M&A Deals:
Accretion Vs Dilution of Earnings per Share
• Read Case: Cerent Corporation (E83-PDF-
ENG)
10 Integration of High • Read Case: Cisco Early if not elegant
Technology firms (UV1632-PDF-ENG)
• Read HBR Article: Making the Deal Real,
How GE Integrates its acquisitions
• Read Case: Foreground Reading of M&A in
Wine Country (4805-HTM-ENG)
11 M&A Deal as a system • Simulation: M&A in Wine Country V2
(4805-HTM-ENG)
• Simulation: M&A in Wine Country Debrief
 Module 3: Strategic Alliances & Joint ventures
12 Fundamentals of Strategic • Read: Note on Strategic Alliances
Alliances • Read Insead Case: Renault and Nissan: A
Marriage of Reason Copyright: 2001
INSEAD-EAC)
13 Management of Strategic • Read Article: How to make Strategic
Alliances Alliances to work
• Read Article: Handle with Care Negotiating
Strategic Alliances
• Read Case: HP-Cisco Alliance (A) (403120-
PDF-ENG) and (B) (404040-PDF-ENG
14 Joint Ventures • Read Article: How to Make a Global Joint
Venture Work, HBR, Product Number-
82310-PDF-ENG
• Read Case: Eli Lilly in India: Rethinking the
Joint Venture Strategy, Richard Ivey School of
Business Foundation, Product number:
904M16-PDF-ENG
15 Closing Lecture • Closing Remarks
• Guest Lecture (Optional)