Big ain't necessarily beautiful

Article Abstract:

The continuing trend of mega-mergers is creating a business climate that emphasizes size and numbers at the expense of strategic planning and what is really good for the business. A recent survey of chief executives placed the management of mergers as the second biggest challenge (30%), after the related customer loyalty/retention (41%) issue. Large mergers may trigger bigger profits, but they also create staff turnover, service problems due to cost cuts, and limited career opportunities. An Andersen Consulting study reveals that 44% of all mergers completed between 1994 and 1997 fell short of corporate parents' financial and strategic expectations.

Australia, Europe, Management, Acquisitions and mergers, Chief executive officers, Public opinion, Strategic planning (Business)

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Is Wall Street's bubble about to burst?

Article Abstract:

Few may have realized that the stock market is already collapsing from within while being fooled by the apparently booming indexes of the Dow, S&P, and Nasdaq. However, S&P calculated that the ten largest stocks in its index accounted for 40% of its 7% gain at the time. Although breadth improvements reflect modest gains for small companies, the average decline of $20 billion stocks fell as much as 14.4% in April 1999. Also, a fall in bond prices and a rise in bond yields make the sharemarket overvalued to the Federal Reserve Board, which will consider raising interest rates.

Analysis, Stock-exchange, Stock exchanges, Capital market, Capital markets, Financial markets

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Perky US business looking peaky

Article Abstract:

The third quarter financial report for 1999 on Standard & Poor's 500 index companies shows a minimum 20% overall profit gain. The recovery of several companies, mostly in the oil industry, since last year is partly responsible for the gain. Corporate profits have doubled to over $500 billion per quarter since 1991.

Forecasts and trends, Statistics, Business enterprises, Industry, Industries

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