Writing
Writing About Economics
Read the text about O’Hare Airport and make in writing a SWOT analysis for the company. Then work in pairs and compare the results of your research.
O’Hare Airport
Chicago’s O’Hare airport is one of the busiest airports in the United States. It is a major hub for both domestic and international airlines, and its smooth running is essential if the many airlines that fly in and out of O’Hare are to remain on schedule. However, delays at O’Hare are commonplace, and this sometimes disrupts air travel throughout the United States and abroad.
Two main factors are responsible for delays at O’Hare: turbulent Midwestern weather and the layout of O’Hare’s runways. Because all but one of the runways are interconnected, bad weather results in the shutting down of most of the runway system. A modernization plan to improve efficiency at O’Hare was adopted. This plan generated considerable, and often heated, discussion and debate.
The modernisation plan is estimated to cost $6.6 billion, which will probably be more like $8 billion by completion. Supporters of the expansion plan say delays could be cut by 79% and that 195,000 jobs and $18 billion would be put into the local economy. The airport plays host to 69.5 million arriving, departing and connecting passengers and has total aircraft operations at nearly 929,000, an average of one landing or take off every 56 seconds. The airport has 178 gates on eight connected concourses and one freestanding terminal. The modernization programme could make a great deal of difference to the efficiency of the airport. Overall, delays are expected to drop by 79%. The future airfield will be able to accommodate approximately 1.6 million aircraft operations and 76 million (passengers) per year.
Source: Airport-technology.com/projects/Chicago
Abstract writing
Read the article about M&As and summarise it in the form of an abstract. Make a list of key words to the article.
In business there is one simple rule: grow or die. Companies on a growth path will take away market share from competitors, create economic profits, and provide returns to shareholders. Those that do not grow tend to stagnate, lose customers and market share, and destroy shareholder value. Mergers and acquisitions (M&As) play a critical role in both sides of this cycle – enabling strong companies to grow faster than competition and providing entrepreneurs rewards for their efforts, and ensuring weaker companies are more quickly swallowed, or worse, made irrelevant through exclusion and ongoing share erosion.
Mergers and acquisitions are a vital part of any healthy economy and importantly, the primary way that companies are able to provide returns to owners and investors. This fact, combined with the potential for large returns, make acquisition a highly attractive way for entrepreneurs and owners to capitalize on the value created in a company.
Starting a company and selling it can be the fastest way to create substantive wealth. While it is difficult to start a successful company, the economic rewards are tremendous.
Mergers and acquisitions have played a variety of roles in corporate history, ranging from the ‘greed is good’ corporate raiders buying companies in a hostile manner and breaking them apart, to today’s trend to use mergers and acquisitions for external growth and industry consolidation.
Essay writing
Write an essay on one of the following topics.
Tips for managing a company not to be acquired
Common mistakes of an acquired organization
Mergers and acquisitions transactions: pros and cons
Common seller and buyer motivations
The cyclical nature of mergers and acquisitions
To merge or not to merge