Research Proposal on Banking Essay Example for Free

Research Proposal on Banking Essay Introduction Over thirty-five years have passed since academics began speculating on the impact that information technology (IT) would have on organizational structure. The debate is still on-going, and both researchers and managers continue to explore the relationship between IT and organizational structure. As organizations need to process more information under these uncertain conditions, IT is one possible way for organizations to increase their information processing capability. We are conducting a research in HBL bank that, how bank increase the number of account holders using Internet banking among its Current Account holders. IT has a dramatic effect on both peoples personal and professional lives. IT is also changing the nature of organizations by providing opportunities to make fundamental changes in the way they do business. The technology is changing rapidly, with computing speeds and the numbers of transistor equivalents available in a given area of a microprocessor chip both doubling in very short time. Organizations are acquiring more and more technology systems to assist in everything from manufacturing to the management of information to the provision and improvement of customer service. Harnessing and coordinating this computing power is the challenge. New tools and innovative perspectives with which to examine, interpret, and comprehend these rapidly evolving environments are always needed and sought. Background / Literature View: IT is transforming the way that business is conducted. Computers prepare invoices, issue checks, keep track of the movement of stock, and store personnel and payroll records. Word processing and personal computers are changing the patterns of office work, and the spread of information technology is affecting the efficiency and competitiveness of business, the structure of the work force, and the overall growth of economic output. Many people believe that the primary driving force behind this information revolution is progress in microelectronic technology, particularly in the development of integrated circuits or chips. Thus, the reason that computing power that used to fill a room and cost $1 million now stands on a desk and costs $500 or that pocket calculators that used to cost $1000 now cost $10 is that society happens to have benefited from a series of spectacularly successful inventions in the field of electronics. But fewer people understand why the introduction of information technology occurred when it did or took the path that it did, why data processing came before word processing or why computers transformed the office environment before they transformed the factory environment. Because this technology oriented view of the causes of the information revolution offers little guidance to the direction that technological developments have taken thus far, it offers little insight into the direction that they will take in the future. Electronic banking is one of the first things that come to mind when one thinks about the future of banking. It is generally assumed that electronic banking is new and that it will replace or supplement many channels of delivery of retail banking services. The term electronic banking as used here refers to any banking activity accessed by electronic means. It includes Online Banking, Automated Teller Machines (ATMs), Automated Call Centers, Digital Cash, Internet Banking, Screen Telephones, E-Utility Bills and so on. These channels of delivery can be used for presenting and paying bills, buying and selling securities, transferring funds, and providing other financial products and services. Electronic banking can be used for retail banking and business-to-business (B2B) transactions, as well as for facilitating large-amount transfers. Equally important, electronic banking is a worldwide phenomenon. As the term is used here, it involves transactions. Web sites that are transactional are considered electronic banking. Electronic banking and the Internet in general are forcing a shift in the way banks and other businesses organize and the way they think of themselves. A shift is taking place from vertical integration to virtual integration. Banks and other financial intermediaries must realize that they are in the financial information industry. The Internet makes it possible to bring both customers and suppliers together to share critical business information. E-banking helps banks relay and show to their clients how good their services are, how many services we are providing and that the services they offer are of better standards. Through E-banking the company can show the clients that they are better than competitors and can give them satisfaction guaranteed. Statement of the problem The internet and the different things it can do to uplift business procedures, products and services is a current necessity for business. One of internets products is Electronic banking. Electronic banking is a faster way for clients to transact with the banks personnel. Clients can still transact with banks while on the comfort and safety of their homes and Offices. The main purpose of this proposed research is to determine, how we will increase Internet Banking Users among their present Account holders. Theoretical Framework: Increase Internet Banking Users Quality Products (websites) A Bank Manager observed that, if he provides the better Quality Products (Websites) and Low Bank Charges on Internet-Banking to his Account holders. This will increase the number of Customer of Internet Banking. But it will not affect on those Account holders with less qualification and do not use internet. Qualification of account holder and use of internet Low Bank Charges on Internet Banking Research Objectives: This Research intends to find out, If Bank updates its website and gives quality products, easy use and as well as reduce its transaction charges on Internet banking will increase the number of users using Internet Banking among its Account holders. However, according to the literature review, the qualification of account holder is plays an important part in this relationship. Our objective is if we increase quality products and reduce its transaction charges on Internet banking will increase the Internet Banking users. Research Question: * If we increase quality products and reduce its transaction charges on Internet banking will increase the Internet Banking users or not? * Qualification of customer and use of internet is effect on internet banking users or not? Research Design/Methodology: Type of research This research will use the descriptive type of research. Descriptive method of research is to gather information about the present existing condition and solving the problem. The descriptive approach is quick and more practical financially. Moreover, this method will allow for a flexible approach, thus, when important new issues and questions arise during the duration of the study, a further investigation may be allowed. The study opted to use this kind of research considering the goal of the study to obtain first hand data so as to formulate rational and sound conclusions and recommendations for the study. Research Strategy For this research data will be gathered through collating published studies from different books, articles from different related journals and studies, and other literary instruments. Afterwards make a content analysis of the collected documentary and verbal material. The study will then summarize all the necessary information. The study will then make a conclusion based on the said information and provide insightful recommendations on how to solve the said problem. Sample and Sampling Technique The respondents of the research came from the different branches of bank mentioned from Karachi. Due to time constraint and also, for the convenience of the researcher, only hundred (100) respondents were considered for the study. The convenience sampling technique was imposed in the study to pick up the hundred respondents, mainly because the availability of the respondents from the different branches was considered. This part of the study is important because the most important data needed to fulfill the objectives and aims of this study will only be supplied by the respondents from the Branches of HBL bank Karachi. Primary and secondary data collection The primary source of data will come from a survey using questionnaire and interviews that will be conducted by the researcher. The primary data frequently gives the detailed definitions of terms and statistical units used in the survey. These are usually broken down into finer classifications. The secondary source of data will come from research through the internet; books, journals, related studies and other sources of information. Acquiring secondary data are more convenient to use because they are already condensed and organized. Moreover, analysis and interpretation are done more easily. Validation of the instrument For validation purposes, the researcher pre-tested a sample of the set survey questionnaires. This was done by conducting an initial survey to at least five respondents from the different banks from Karachi. After the respondents answered, the researchers then asked them to cite the parts of the questionnaire that needs improvement. The researcher even asked for suggestions and corrections from the respondents to ensure that the survey-questionnaire is effective. Automatically, these five respondents were not included as respondents for the study. Data analysis Data gathered will be analyzed through frequency distributions. These will give way to reviewing the data categories and the number of referrals in each category. The data acquired will be analyzed according to the different categories and importance. The information that will be gathered and analyzed will be important to achieve the objectives desired by the study.

The Mythology of Star Wars Essay -- Movie Film Essays

The Mythology of Star Wars This essay is dedicated to the idea of displaying the true epic of Star Wars. From the hero's journey in the unknown forests, to the goddess and spirtual revelations, this site will show Star Wars in a way many have not seen--a great mythological tale of sorrow and amazements that has lived through our history as long as the human race has lived on Earth. Even as George Lucas has explained as the reason why he created Star Wars, "I wanted to make a kid's film that would strengthen contemporary mythology and introduce a kind of basic morality" (Pollock I44). Introduction: Science Fiction Vs. Myth In 1977, George Lucas created a film that so inspired the public, its name is commonplace to, not just the United States, but several countries of the world...

A Change of heart About Animals Essay

Although much of modern day technology is focused on materialistic things rather than the issues, such as animal rights, which are more important. â€Å"A Change of heart About Animals†, by Jeremy Rifkin, is an article where he argues how animals have feelings and should have their own rights. He describes how animals have the ability to learn. What he doesn’t do is describe animals as a lower class, but as â€Å"Our fellow creatures† so he states in his article. In Rifkin’s article he uses language such as ethos, pathos, and logos while using a persuasive tone. Ethos is expressed when Rifkin credits the scientists at Oxford University with the testing of two crows and their ability to snag a piece of meat from inside a tube. Pathos is also expressed towards the end of the article when he emotionally calls animals â€Å"our fellow humans†. Last but not least logos is expressed when he states how the European Union outlawed the use of isolating pigs in stalls. Some have argued that by simple jester’s animals can live happier lives. For example, in Germany pig farmers are encouraged to give pigs twenty seconds of human contact each day. Some of the sponsors that provide this research are fast food purveyors, such as McDonalds, Burger King, and KFC. Their contribution has eased the pressure off of animal rights activists. Even though steps have been taken towards research development, there is still more to be learned. Because of such inhumane behavior shown by some farmers, some universities have introduced law courses on animal rights. Some of these Universities have filed law suits for animal rights. As a result of this Germany became the first nation to guarantee animal rights in its constitution. It just goes to show that there are still some good people out there. It’s obvious that more action needs to be taken towards achieving our goal at animal rights. With the help of animal activists and some major universities, we can achieve animal rights. It isn’t fare to them. That’s why it’s up to us to give our fellow creatures the rights and protection that they deserve. Just think, would you like to be caged all day with no say on what to eat, and live in hard conditions? A Change of Heart about Animals Essay In â€Å"A Change of Heart about Animals† Jeremy Rifkin says that animals have the same human qualities that humans have. And with that they deserve more if not the same amount of respect as human beings. He gives many examples on how some animals are human like emotion and skilled wise. I disagree with Rifkin. I think that most animals should not get more respect than human beings reason being that most of the animals he listed are going to be killed and be used for reasonable human use. To begin with, Rifkin gives many examples that are self contradicting to what he is trying to argue. First Rifkin says â€Å"Studies on pigs’ social behavior funded by McDonalds at Purdue University†¦ they crave affection and are easily depressed if isolated†¦ lack of mental and physical stimuli can result in deterioration of health.† Here Rifkin is saying that pigs need attention in order to stay healthy. I disagree with this because in the end the pigs are going to be killed and be used for human consumption so why would it care if they are depressed or not. Also, it contradicts itself because the people funding it are one of the major corporations killing thousands of pigs day in and out so it makes it seem like they are trying to save the pigs. Later he states â€Å"Philosophers long argued that other animals are not capable of self awareness because they lack individualism†¦ At the Washington National Zoo, orangutans given mirrors explore parts of their bodies they can’t otherwise see, showing a sense of self.† Here he is stating how animals do in fact have a sense of self awareness and that orangutans are a prime example. I disagree with this reason being that Rifkin didn’t give the name of the philosophers who said this, making it not credible because anyone could have said that. Also they are not really giving the orangutans to freely observe themselves because they have them locked up in enclosure at the Washington national zoo. All in all I think Rifkin does not give a strong enough argument. He gives examples that easily contradict him making his argument not credible enough for the reader. With this I think Rifkin is in no position to say that animals deserve more rights than human beings.

A Culture Of Disposability America Has Developed A...

A Culture of Disposability America has developed a strong sense of consumerism over the last decades. This has led to an increase in production levels and the variety of products available. This is in a way a result of America’s strong economy and availability of resources. This boom in the market has also introduced new marketing techniques that try to increase the level of consumption in America even further. Two of these techniques are planned obsolescence and perceived obsolescence. Both of these techniques target the average consumer and make him constantly replace his possessions using physical and psychological factors. The sale of electronic devices for entertainment benefits a lot from planned and perceived obsolescence, and although this happens mainly in the United States, El Salvador is no stranger to this phenomenon. Planned obsolescence is when a manufacturer purposely designs a product for it to stop working after a certain amount of time so that the consumers find themselves in the need to replace it. It is a marketing technique that ensures a constant consumption of the same item and therefore it is highly profitable for the seller of the product. However, the product needs to work perfectly for a moderate amount of time to gain the trust of the consumer; therefore, planned obsolescence is a very complicated art. However, it is really easy to carry out planned obsolescence in electronic devices used for entertainment. This is because of two factors. The

Iams understands people who love pets - 827 Words

Question 1 What are some of the psychological influences that are most important to Iams in understanding their buyers? Answer: There are four psychological influences that are most important to Iams in understanding their buyers. First psychological influence is motivations. The motivation is the drive that leads the buyers towards buying a product or service. When buyers’ motivation is high enough, which means that their need is high, thus, they will actively seek to satisfy that need. This will result in the consumer deciding to buy the product. Iams need to successfully leverage the consumer’s needs which will in turn motivate consumers to buy their pet products. Example, Iams understand that many pet owners treat their pets as†¦show more content†¦Question 3 Outline the positioning strategy being pursued by Iams. Answer: The positioning strategy being pursued by Iams is positioning on quality of product and services. Iams knows that many pet owners treat their pets as family members and want to provide their pets with high quality products. Therefore, Iams is produces premium pets products for the pet owners. For example, Iams provide ProActive Health formulas that include PreBiotics, good bacteria that promote healthy digestion. Iams also has a Healthy Naturals line that includes ingredients such as Atlantic Salmon and contains no artificial, flavors or perseverative. Besides, the company has Savoury Sauce formulas for dogs are bottled just like human barbecue sauces or marinades which is rich in vitamins, minerals and antioxidants, are low in calories and fat. All of these products that Iams provided are because they know some of the consumers believe that as an additional member of the family, pets are entitled to the same quality and nutrition as other family members. Thus, they target their posi tioning strategy on quality of products. Moreover, they also positioning on quality of services. Iams realize the importance of consumers’ relationships with their pets, so Iams is expanding its business into the veterinary industry. They work with insurers to provide pet health insurance. IamsShow MoreRelatedAnimal Testing is Animal Cruelty Essay1880 Words   |  8 PagesNone of these people care about if it hurts or kills the animals. The cruelty has been going on long enough and I think it is time to stop. What people do not know is that animal’s react a different way to drugs as humans do, so scientist cannot apply the results to humans. Many animals go through screaming, unbearable, horrific; you cannot even imagine pain when they go through test for products that you use every day such as: Cosmetics, Household Products, Medical Products, even Iams dog productsRead MoreAnimal Experimentation Is The Cruel Silent Animal1349 Words   |  6 PagesAnimal Experimentat ion No doubt, we all love our products whether it be beauty, medicinal, or cleaning purposes. Of course they satisfy our needs and maybe even go above and beyond and just make the smallest difference or the biggest in our lives by improving or making things easier. Ever wonder how these products go about being made? Probably not. This however is something we should consider paying close attention to. Behind the scenes of our most favorite products is the cruel, silent methodsRead MoreProcter and Gamble Strategic Analysis3371 Words   |  14 Pagescountries. Procter and Gamble, in conjunction with its subsidiaries provides branded consumer goods products. Procter and Gamble also makes pet food, water filters, snacks and beverages. More than 20 of Procter Gambles brands are billion-dollar sellers. These include Actonel, Always/Whisper, Braun, Bounty, Charmin, Crest, Downy/Lenor, Folgers, Gillette, Iams, Olay, Pampers, Pantene, Pringles, Tide, and Wella, among others. In 2001 Procter Gamble bought Clairol and in 2003 also bought the majorityRead MoreFeasibility Studies for Bookstore and Coffee Shop15507 Words   |  63 Pagesand feasibility criteria. Company Name During ancient times, leaves are used as a writing instrument in the form of â€Å"papyrus† which provides the knowledge and ideas that built the early civilization of mankind. It is an instrument which made people survive and improve their everyday life, and also, to help exist the world today. It became our inspiration in putting up a bookstore, the idea of which is to provide information, knowledge, and ideas that will help in supplementing the complex thinkingRead MoreInnovators Dna84615 Words   |  339 Pages â€Å" e Innovator’s DNA sheds new light on the once-mysterious art of innovation by showing that successful innovators exhibit common behavioral habits—habits that can boost anyone’s creative capacity.† author, e 7 Habits of Highly E ective People and e Leader in Me â€Å"Having worked with Clayton Christensen on innovation for over a decade, I can see that e Innovator’s DNA continues to stretch our thinking with insights that challenge convention and enable progress in the important causeRead MoreMarketing Management Mcq Test Bank53975 Words   |  216 Pagesbrand is ________. A) ensuring that customers have the right type of experiences with their products and marketing programs to create the desired brand knowledge B) pricing the product at a point that maximizes sales volume C) minimizing the number of people to whom the product is targeted in order to provide consumers with a personalized experience D) minimizing the impact of customer brand equity E) avoiding the usage of an established brand to introduce a new product in the market Answer: A Page Ref:Read MoreMarketing Management 14th Edition Test Bank Kotler Test Bank173911 Words   |  696 Pages This is an example of ________ for pollution. A) declining demand B) nonexistent demand C) latent demand D) negative demand E) unwholesome demand Answer: D Page Ref: 8 Objective: 2 AACSB: Analytic skills Difficulty: Moderate 14) People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an opportunity for marketers to exploit this ________ market. A) demographic

Women s Work And The Gender Implications Of Australia

According to a news article from The Age (2015), it reported that Australian job market have seen the rise of men working in roles that have been traditionally considered ‘women’s work’, such as Ballet, a team of Ballet dancers in Melbourne’s Southbank is composed by 30 males and 38 females. It is no surprise that the identities and statuses of young people in Australia are more complex contemporarily, unlike the past that young people may have the fixed role on the society and the gender implications in the workplace. According to the data from Australian Bureau of Statistics (2015), it showed that men make up about 10 per cent of nurse in Australia, male student account for 16 per cent of student at Sydney Nursing School. Welch (2007)†¦show more content†¦Wyn (2011) noted that young people are faced with the erosion of traditional social structure, which means the contemporary young people are not prevailingly concentrated on family, work and wel fare state. Wyn further explained that thanks to the distinctive social and economy circumstances in post-1970 generation, some of the young people left school and worked in an early age. Granted young people finished high school or university in post-1970 generation, they might not find the jobs that were related to their academic backgrounds. Wyn (2011) pointed out that half of the post-1970 generation did not find themselves in a job that directly related to their careers. Moreover, the traditional ambition in workplace is ‘upward mobility’, most young peoples preferred to get a steady job and the mobility of changing work type is low. Along with the demand of society and the social structure is changing, the work type for young people are more diverse and emphasize the individualization. Lawrence (1998) stated that the contemporary young people are trying out various types of relationship and multiple forms of the selves that they may become. Therefore, it is no dou bt that the contemporary young people might not have a fixed and particular job. According to a survey from Wyn (2011), there are 18%of young people holding one job, 61% holding between two

Strategic Management Acquisitions and Strategic Alliances

Question: Describe about the Strategic Management for Acquisitions and Strategic Alliances. Answer: Introduction: Oil is an important factor for the energy sector. The fall in the price of oil will create a lower level of profit and spending for the projects. The energy companies they try to maintain a balance. The effect is not only on the energy industry but consequently on the other industries as well. The drop in the oil price was quite huge. The price of a barrel was 100 dollar per barrel for West Texas Intermediate (WTI) during first 8months of 2014 and it was 50 dollar a barrel in the month of March 2015. This fall in the price of oil and natural gas means there lower usage of the drilling rigs in the US. The number declined from 980 in the last quarter to of 2014 to 954 in the mid April 2015 ( Lv and Spigarelli 2015). The number is likely to decline as the number the rigs are stacked in 2015 once the drilling commitment is completed. This is the reason why the oil producing countries has reduced their expenditure in the planned explorations (Hess and Siegwart 2013). The price of the hydr ocarbon could cause a negative inflationary impact which could be increase the level of consumer spending but the overall effect on the economy is quite depression. To restore a strong position, Merger and Acquisition in the energy sector is common. Explanation of the merger and acquisition deal in the energy sector during 2014-2016 through academic model: There is a huge shift in the oil industry with the fall in the price of oil as this would be effecting Mergers and Acquisitions and buying and selling of the Assets. In the Middle East the question is mainly focused on the two perspective i.e. the international diversification strategies and making long-term regional investment. Some issues need to be focused upon during the falling oil price when they oil sector of Middle East they deliver on their ambition. The need for the efficiency of capital would rise with the perpetual fall in the oil price. PwC reiterated it during a survey in the 2014 that despite the fall in the oil prices, there will be arise in the spending on the projects as the sector has a long-term strategic importance to the national companies and the government. The survey revealed that from the three quarters of respondents from the contractors, developers, financers and advisors spending on the project are likely to rise in the next 12 months (Hansen, Foldmand Ha nsen 2014). The price of oil has dropped quite significantly since the survey, there would not be change in the project plans as this sector holds fundamental importance to the governments of the region, which generates revenue and employment. Examples: The mergers and acquisition in the energy sector is generated in terms of the deals and value that is transacted in comparison to similar periods a year ago. The falling prices of the product in the upstream sector which caused transaction which is smaller. In the US, the acquisition by Noble, WPX, Exxon and Vangard has been made in the Shale plays. Sequa in Norway and Vedanta in India and interest by BP in the Siberian Project made the international purchases. There were more differences noticed in the number of deals and value of the deals reported. The Cameron acquisition announced by Schlumberger helped in service sector merger and acquisition activities (Serdar Dinc and Erel 2013). The eyes catching deals with the fall in the oil prices was takeover by Royal Dutch Shells of BG Group for an amount of 47 billion pounds. This a one off transaction as the deals of upstream has moved towards assets. There has been a rise in the mergers and acquisition activities in the renewable as t here is a demand for the predictable and rise in the yield companies. Sun Edison who sponsors the two US yield companies are TerraForm Global and TerraForm Power was the leader in the acquisition and of the portfolios from Vivint Solar, Globaleq Mesoamerica Energy, Renova Energis , Atlantic Power and Firstwind (Ptri et al. 2014). The two major gas utility acquisition in the US was the acquisition of Black Hills of Source Gas which operate regulated natural gas utilities and Southern Companies acquisition of AGL Resources. The momentum with respect to the mergers and acquisition are gained during the downturn when the buyers they wait for the price to be lowered and sellers they wait for increase. Academic Model explaining the internal and external factors of Merger and Acquisition: The internal and the external factors that tend to affect the mergers and acquisition in the energy sector is through the SWOT analysis. Through the SWOT analysis, there would be proper analysis of the internal factors i.e. the strengths and the weakness and external factors like the opportunities and the threats. Internal factors: Strength and Weakness: Economies of scale: The main motive behind the merger and acquisition is the Economies of scale. Some synergies are gained from the takeovers. The merger planners they tend to cite the economies of scale as the main operating synergies. There are more benefits that is derived from the economies of scale. The small firms of the energy sector would be engaging in the merger and acquisition activities rather than the large firms so that they are able to enjoy lower cost Financing Issues: Historically it has been noticed that cash most commonly makes the acquisition. This trend has decreased and financing is done partially through cash. Theory has is that the managers with a greater amount of cash flow are trying for value destroying mergers. The managers with few opportunities of investment will be using the cash flow in the unprofitable projects. It has been noticed that the extra amount of cash that is held by the European energy companies will be used in MA to detriment long-term investment in the generation and the exploration activities (Fich, Nguyen and Officer 2015). Unlike that is predicted by the theory of the free cash flow , firms with even a higher degree of cash flow might also not engage in the Merger and Acquisition activities. External Factors: Opportunities and Threats Excess Capacity: This industry level characteristics help in driving the merger activities. When the firms they face a gap in capacity of production then there will reduction in the efficiency of the asset and so there is a fall in the return on the capital that is invested. For performing the merger and acquisition activities, the firms with excess capacity they look for consolidated resources so that the issues are resolved (Kolk, Lindeque, and Buuse 2013). There are probability-based models, which will help in understanding whether the firms they engage in MA or not as per the pre characteristics of merger. When the merger is motivated by the excess capacity then this is a source of economies of scale. Corporate Focus: This a subject quite relevant to the merger and acquisition activities. The researcher they look out for the effect of a merger. The nature of competition tends to vary which would vary the strategic focus (Dess 2012). This type of a strategy in the energy industry is called the inter industry Merger and Acquisition when converge is mainly between the electric and the gas companies. The vertical and horizontal mergers show insignificant changes. Market for corporate control: Through corporate control we mean the rights in the determination of the corporate resources The takeover market is a effective for of disciplinary method for the management of the share holder value and the poorly managed resources are transferred to the efficiently run corporations. There would be higher Tobins q for MA as acquirers. The low level of Tobins q of the firms will be prone to the targets (Hill and Jones 2012). Deregulation: Deregulation is a sort of industry shock, which results due to the industry consolidation. The industry shock is helps in creating the mergers. There is a change in the industry when there is modification in the structure of the industry (Lasserre 2012). Deregulation s a important factor that drives mergers and acquisitions. Challenges and the Benefits of Mergers and Acquisition in the Energy sector through the academic model: With the implementation of the strategy of Merger and Acquisition, there have been both benefits and challenges faced by the Energy sector. The firms in the United States practice this very popular strategy for many years. The energy sector is a common sector as there is uncertainty in the competitive environment. This type of a strategy will help the energy sector to achieve growth. The main motive is to increase the value of the firms and this would help in providing more than average returns and strategic competitiveness (Lynch 2012) The term merger and acquisition is used synonymously but these are not similar. Merger is when the two firms they integrate operation on co equal basis. Benefits of Acquisition: There are a number of reason as to why there are acquisitions in the market of Energy due to the falling price of oil. The big firms they acquire so that they are able to increase their market power and can sell the good at the competitive rate and when the cost of the activities are lower than that of the competitors (Pitt and Koufopoulos 2012). The energy firms they gather their market power. The acquisition would be involving buying the distributor, business, supplier and competitors. This will help in increasing the power of the firms in the market. With acquisition, there would not be any type of entry barriers in the market (Sick et al. 2015). There is new market with the geographic diversity The firms they are able to access new products in the market. This is type of collaboration offers lower type of risk than that of developing a newer type of product. The internal development has a very higher failure rate. The diversification would be occurring when there is entry into th e new market with the new products. It is very difficult to distinguish the current market lines when there is no experience by the firm. Acquisitions can be successful when it is more related. Through acquisition, the competitive scope is going to increase with the dependency by the firms. It is feasible that the acquiring companies with related capabilities build their base of knowledge. Challenges of Acquisition: Researchers have shown that not all the type of acquisition is successful. There is a greater level of integration difficulty. The most important thing is the shareholder value creation (Kamiski 2014). There is differences in the systems of control, work, financial and culture. The status of the firms that acquires the energy plant has to face a difficult times. The targets are no evaluated adequately. There potential firm evaluated the target firm for acquisition. This might also lead the company to offer higher rate of premium for the company that is targeted. When the risky type of acquisition is financed through the debts this will help in creating more returns to the moneylender. Debt is not at all good for the firms as this would increase the bankruptcy, this might lower the credit rating of the firm (Shimizu 2012). Other types of investments help in long-term success of the energy firm. There is no synergy achieved that means the value created exceeds the value of the units that work independently. Synergy can be achieved when the firms assets are complementary in nature. This will be imitating the competitive advantage. There is a huge possibility of the firm to underestimate the costs and over estimate the synergy (Nisar, Ruiz and Palacios 2013). Private synergy would be occurring in the integration and combination of the firms that acquire the asset and for the development of the core competencies. Private synergy is quite difficult. Diversifications by the energy-producing firms are likely having lower performance results. There is a need for more amount of information for greater type of diversity. Figure: Acquisition Strategy Framework (Model) (Source: Holburn and Vanden Bergh 2014) Some steps through are followed for acquisition process. The above model represents the five stages of the acquisition process. In the first stage there is early growth, where the product is innovated, then there is rapid growth which involves development of the standards. The next phase is the process innovation, which involves external value proposition. The second last stage is the stability and then the last stage involves innovation or decline (Raimbault and Barr 2012). Benefits of Merger: Merger is likely to occur when the firms they come together as one. The firms they would be having a large market share and lower level of competition. When there are merger the firms, they enjoy large economies of scale in the market. This will help in lowering the average cost and lower the price offered to the customers. Figure: Lower levels of Cost (Source: Yoo, Lee and Heo 2013) Merger will help in competing in the international market and also helps in posing threat to the competitors. The firms making a merger will have more profit so this is financed in the risky investment. This would help in maintaining better quality of the goods. This is true for the energy sector as there is a need for huge amount of investment. There would be greater amount of efficiency with the elimination of the redundancies. Mergers are a way of safeguarding the companies from closing. Firms who are struggling to stay afloat thinks that mergers are a convenient option. With the merger there is greater sharing of knowledge by both the industries. Challenges of Merger: Just like the innumerable type of benefits from the merger there are also some challenges that is faced by the firms. There are legal issues that are faced by the firms. Legal factors needs to be considered prior to merger as this might created a large penalty on the merger firm. Mergers happen across the world. Difference in the culture that firm has to face along with upheavals in the business operations. The outcome of the merger is threatened by the differences in the cultures. It would be difficult for the firms to coordinate the workers (Cartwright and Cooper 2012). The problem of integration is quite significant. The resources and the efforts of the company, combined through all the type of resources together in the organization. The planning of integration is related to the cultural issues this is directly related to the process of planning. Conclusion: Thus, energy sector is going to survive the perpetual fall in the oil prices during 2014-2016 due to the acquisitions and the mergers. This would help in gaining access to the newer type of market, facilitates effective Research and development in the system and efficient running of the organizations. The small firms due lack of finances try to merge and collaborate with the other firms so that they are able to overcome the difficulties of lower oil prices. It has been seen that there is going to be investments made in the projects irrespective of the falling oil price in the national interest. References: Cartwright, S. and Cooper, C.L., 2012.Managing Mergers Acquisitions and Strategic Alliances. Routledge. Dess, G. (2012).Strategic management. New York: McGraw-Hill/Irwin. Fich, E.M., Nguyen, T. and Officer, M.S., 2015, March. Large wealth creation in mergers and acquisitions. InAFA 2013 San Diego Meetings Paper. Hansen, U.E., Fold, N. and Hansen, T., 2014. Upgrading to lead firm position via international acquisition: learning from the global biomass power plant industry.Journal of Economic Geography, p.lbu050. Hess, S. and Siegwart, R.Y., 2013. RD Venture: proposition of a technology transfer concept for breakthrough technologies with RD cooperation: A case study in the energy sector.The Journal of Technology Transfer,38(2), pp.153-179. Hill, C. and Jones, G. (2012).Strategic management essentials. [Mason, Ohio]: South-Western. Holburn, G.L. and Vanden Bergh, R.G., 2014. Integrated market and nonmarket strategies: Political campaign contributions around merger and acquisition events in the energy sector.Strategic Management Journal,35(3), pp.450-460. Kamiski, J., 2014. A blocked takeover in the Polish power sector: A model-based analysis.Energy Policy,66, pp.42-52. Kolk, A., Lindeque, J. and Buuse, D.V.D., 2013. Regionalization strategies of EU electric utilities.British Journal of Management. Lasserre, P. (2012).Global strategic management. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Lv, P. and Spigarelli, F., 2015. The integration of Chinese and European renewable energy markets: The role of Chinese foreign direct investments.Energy policy,81, pp.14-26. Lynch, R. (2012).Strategic management. Harlow, England: Pearson. Nisar, A., Ruiz, F. and Palacios, M., 2013. Organisational learning, strategic rigidity and technology adoption: Implications for electric utilities and renewable energy firms.Renewable and Sustainable Energy Reviews,22, pp.438-445. Ptri, S., Arminen, H., Tuppura, A. and Jantunen, A., 2014. Competitive and responsible? The relationship between corporate social and financial performance in the energy sector.Renewable and Sustainable Energy Reviews,37, pp.142-154. Pitt, M. and Koufopoulos, D. (2012).Essentials of strategic management. London: SAGE. Raimbault, C. and Barr, A. (2012).Emerging risks. Farnham, Surrey: Gower. Serdar Dinc, I. and Erel, I., 2013. Economic nationalism in mergers and acquisitions.The Journal of Finance,68(6), pp.2471-2514. Shimizu, K. (2012).The cores of strategic management. New York: Routledge. Sick, N., Preschitschek, N., Brring, S. and Leker, J., 2015, August. Market convergence in the field of stationary energy storage systems. In2015 Portland International Conference on Management of Engineering and Technology (PICMET)(pp. 571-584). IEEE. Yoo, K., Lee, Y. and Heo, E., 2013. Economic effects by merger and acquisition types in the renewable energy sector: An event study approach.Renewable and Sustainable Energy Reviews,26, pp.694-701.