Case Study on Nol

Introduction In November 1997, the encyclopedism of APL by NOL was successful. As compared to the larger US based APL; NOL was a small capital of Singapore firm. Through this acquisition, it appeared that NOL was pay off to become an industry leader in the shipping industry. and then this acquisition is a strategy through which NOL buys a controlling, one hundred per cent, interest in APL with the intent of making the acquired firm a subsidiary business within its portfolio. Thus APL became a wholly owned subsidiary of Singapore based NOL, a orbicular transportation and logistics company engaged in shipping and cogitate businesses. Below is the study of the problems and strategies that NOL faced or is facing during the acquisition and integration of APL. Issues/Challenges facing NOL/APL 1) Agency Relationships There were separate worry structures maintained in the group with the CEO of NOL in Singapore and CEO in the United States reporting to the group CEO. This detachment between owners and manager creates an agency relationship. This exist when one or more soulfulnesss (the principal or principals) hire another person or persons) as decision making specialist to discharge a service. In the modern spate, managers must understand the golf links between these relationship and the firms effectiveness.

The agency relationship between managers and their employees is important as this is related directly to how the firms strategies are implemented. This insularity between ownership and managerial control in this lawsuit can be problematic as the principal and the agents assimilate different interests and goals. In a large publicly traded corporation such as NOL/APL, shareholders (principals) lack direct control when the CEOs (agents) stool decisions that result in the pursuit of goals that conflict with those of the principals. Thus the breakup of ownership and control allows divergent interests (between principals and agents) to surface, which can lead to managerial opportunism.... If you want to get a full essay, order it on our website: Ordercustompaper.com

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