Universal Studio Theme Park Project: Firm Analysis

A. General Instructions:

An Executive Summary and half page Introduction should be included. Also, a Conclusion should be included at the end of the report.

B. Basic Overview:

Identify a short list of potential India target companies (Adlabs Imagica and Wonderla Bangalor Theme Parks) for acquisition in along with the rationale for considering each one, and select one to be the target based upon your analysis. Provide reasons for your decision based upon your research. Specify whether this will be an acquisition or joint venture and your reasons why. An example of the first sentence of your Executive Summary should read as follows: “We recommend that Universal Studio, a major multinational company in the entertainment industry, target India as the first country, through an acquisition of Adlabs Imagica Theme Park, one of the key local companies in the theme parks industry.”

The following is the basic outline.
Part VI. Determination of the Target Company for Acquisition.

1. Short list and profile potential India companies candidates (Adlabs Imagica and Wonderla Bangalor Theme Parks) and provide comparative benefits to your client company.
2. Selection of the Target Company for Acquisition or Joint Venture.
3. Description of the target company and its fit with strategic objectives of Client Company. Use comparative analysis of the potential companies in terms of strategic fit with your client. What is the structure of your partnership: joint venture/acquisition?
4. Suggest operational roles and activities of the partners of the new venture. What will your client firm and target firm each be responsible for in terms of the new venture? Break this into strategic responsibilities and operating responsibilities. How will these responsibilities be broken out?
Use the following models to analyze the benefits of the acquisition:

• Internal resources: Competitive advantage rationale / Value chain rationale / Resource Based View of the firm rationale. In other words, focus on the skills transfer potential between the two firms. How will the two firms strengthen each other as a result of their partnership?

• Shared resources: Vertical integration rationale / Horizontal integration rationale. How will efficiency be increased as a result of the combined operation?

• Financial rationale: Consider the deal from a financial point of view and effects on rate of return and debt load for example. Note: Acquisitions in the past have focused on the first two issues but ignored this dimension and incurred huge debts to make the deal only to find the financial aspects undermined or negated the strategic benefits.

This paper will be added to the previous two paper you done for me, last week and the week before. The first paper on University Studio and second paper from previous work from Weeks 1 and 2 papers to produce one term paper which includes the following:

1. Company Characteristics and Analysis. Identification of a client company and a description of its characteristics and strategic needs and intent. Why is making a foreign diversification move necessary in terms of its strategy and performance effects? (Week 1)

2. Industry Characteristics and Analysis. Profile of the client firm’s industry indicating the Critical Success Factors in the industry and how these relate to the decision to diversify abroad. (Week 1)

3. Country Characteristics and Analysis. Conclusions of your analysis of attractive countries to fulfill your strategic intent. What specific country are you recommending and why? (Week 2)

4. Investment Partner/ Target Firm Analysis. Discussion of your choice of an investment partner. (Week 3)

5. Summary of your recommendations.