Stakeholders tend to gauge the value of the company based on its monetary worth. Corporate value steers the decisions of the leaders towards prevailing business circumstances and are not rooted in morality, ethics or philosophical convictions. In the case of F&N, the executives Justify a breach of cuisines ethics on the basis of financial profit, which was to offer a break-up fee to entice a higher bid. Also, with four of its nine-person board of directors holding shares directly in F&N, their decisions might be flawed where personal interest is at stake.
Consequently, there will be ineffective corporate leadership due to vulnerability of decision-making being subjected to personal interests. The ETC offer is a premium in a range of 21% to 77% above daily closing prices of the 12-month period prior to the unaffected share price date, which the directors cited as "fair" and later agreed to sell their shares to ETC. The break-up fee initiated by the leaders of F&N shows that there was a preferred buyer in mind- OWE. The collective actions undertaken by the leaders to attract a higher bid have compromised the spirit of fairness.
With ETC owning more than 90 per cent of F&N5, it is likely to delis F&N on Singapore Exchange (SIX). From an economical point of view, should F&N delis, Singapore wall possibly race a decrease In revenue. Ata more phonological level, Singapore should have contemplated the sale of its 130-year-old conglomerate, a homegrown brand backed with a rich heritage. Evidently, corporate value is assured in terms of monetary gains and history is the least of consideration. It could be blamed on the leaders of F&N that they failed to preserve a strong corporate brand.
Corporate leaders play an integral role in decision-making as it draws up plans that shape the future of the company. If the leaders of F&N had felt that preservation of a national brand is important the same way the government feels it is important to preserve historical monuments, F&N would not have landed in Careen's hands. This highlights the importance of values leaders hold when it comes to decision-making. The sale of F saw Jerkin's move from being See's ally, as it was seeking to gain control of F's Food and Beverage business, to selling its shares to ETC later.
In F&N's letter to its shareholders from the board of directors, it mentioned that Shrink will tender all the F Shares it held and will not accept any competing proposal. 6 This shows that Shrink was bent on acquiring F's food and beverage operations but it could only be made possible should See's offer become unconditional. The sale of F highlights that some businesses are interdependent, where decisions made by one can determine the decisions of another. In this case, See's decision to bow out from the F&N battle would possibly result in significant losses for Shrink.
Corporate leadership ends to be based on maximizing the interest of one's company. A partnership between OWE and Shrink is ideal as both stand to gain from an expansion in their niche industries, namely property and food and beverage respectively. Careen's hostile takeover of F&N clearly shows his ability to influence and dominate. It is claimed that his acquisition of F&N was years in the making, which demonstrates Careen's foresight in expanding in the S. E. A region. In this throat environment, good corporate leadership lays the foundation for success.
It is vital for leaders to recognize market trends and anticipate changes in the market. While it takes talent to be able to take on the role as a leader of a company, the ability to adapt to changes is essential. All these traits of corporate leaders are essential in ensuring its competitiveness in the market. Before acquisition, Shrink was F's second-largest shareholder, owning approximately 15% of F&N's total shares since 20108. Shrink has been eyeing to leverage on F's established platform to tap into he ever-growing consumer market in Southeast Asia (S.
E. A) since it bought its stake in F&N, in hope of collaboration one of its corporate strategies- integrated beverages strategy. 9 Judging from Jerkin's previous agreement with OWE to acquire F's food and beverage business should See's offer become unconditional, it is apparent that Shrink has much determination in pursuing its integrated beverages strategy in S. E. A region. High-growth Southeast Asian economies with attractive demographics and consumer-spending trends have created lucrative consumer markets.
However, Careen's successful bid has sparked a major reformation in F&N's ownership structure, weighted heavily to ETC. The acquisition of F highlights Thieves ambitions to expand its business footprint both within Thailand, where it already has an edge in, and abroad. This will likely be done particularly through the non-alcoholic beverage business F owns as it looks to diversify its revenue stream wanly Is still mainly Trot alcoholic Orleans upon ten closing Ana lapsing AT ten Offer on January 21, 2013, which triggered Shrink to sell their stakes, it sends Shrink back o its starting point as it has lost its foothold in S.
E. A. While Shrink intends to continue to pursue its integrated beverage business strategy in Southeast Asia through existing footholds such as Interferon Shareholding Company in Vietnam and Siam Shrink Beverage Co. , Ltd in Thailand, Shrink is deemed to be the "loser" of the sale of F. Jerkin's future in the S. E. A. Region seems to be rather bleak. The combination of F&N and Careen's Thieve creates a powerful, multifaceted player in the region, with F's strong position in soft drinks in Malaysia and Singapore.
The proposed investment immediately diversifies the company geographically and is highly complementary to the company's existing single-market focus. Here the potential seems genuinely compelling, with F's stable of powerful soft drinks brands complementing Thai Beverage's position in beer and spirits. Coupled with F's 55% stake in Manner Brewery 1 offers entry into one of the region's most intriguing emerging markets, there is huge potential for massive expansion over the next decade. Beer sales in Japan fell 3. 7 percent in 2012, the lowest level since records began in 99212.
With the decline in sales in Japan, there is an urgent need for Shrink to look for alternative sources of revenue to sustain its growth. Expanding its brand in Southeast Asian economies would be deemed most feasible but is likely to be hampered with Careen's dominating presence in the region. Hence, there is a need for Shrink to re-strategies and this would not be possible without good corporate leadership. With all these factors in view, Shrink is likely to suffer from a loss of market share in the S. E. A market in the long run as Careen's empire expands, hence a "loser".