1. Pertemuan 26 (Twentysixth Meeting)
Matakuliah : J0084 / Introduction to Management
and Business
Tahun : 2007
Versi : 1 / 3
Pertemuan 26 (Twentysixth Meeting)
Business Expansions

2. Learning Outcome Student should be able to implement effective
business expansion strategies which very
needed to develop investment -> C3

3. Learning Outline Investment Decision
Steps of Capital Budgeting Implementation
Business Merging and Others Restructuring
Forms
Short Term Investment Decision

4. 1. Investment Decision
a. How Interest Influence Investment Decision
b. Capital Budget
c. Classification of Capital Expenditure
1) Expansion of existing business
2) Development of new business
3) Investment to asset that will decrease
cost

5. 2. Steps of Capital Budgeting Implementation
a. To Propose New Project
b. To Estimate Project Cash Flow
c. To Determine If That Project is feasible to
be Done
d. To Implement feasible Project
e. To Monitor Implemented Project

6. 3. Business Merging and Others Restructuring
Forms
a. Types of Business Merging:
1) Horizontal merger
2) Vertical merger
3) Conglomerate merger

7. 1) Horizontal merger First Union Corporation Wanchovia Corporation
Bank Bumi Daya
Wanchovia Corporation
Bank EXIM

8. 2) Vertical merger Automotive Industry Potential Potential Customer
Supplier
Battery
Producer
Automotive
Industry
Potential
Customer
Newspaper

9. First Union Corporation
3) Conglomerate merger
First Union Corporation
Bank Bumi Daya
Aviation Industry

10. b. Various Motives of Company To Make
Business Merging:
1) Instant growth
2) Economic scale
3) Managerial Experience
4) Tax profit

11. c. Joint Merging Analysis:
To Identify potential prospective
business merging
2) To evaluate potential prospective
business merging
3) To decide business merging

12. d. Business Merger Procedures
1) To fund business merging
2) To offer bargaining
3) To integrate business
4) To evaluate post business merging

13. e. Protection from Take Over
f. Leveraged Buyout
g. Divestation

14. 4.Short Term Investment Decision:
a. Liquidity Management
b. Accounts Receivable Management
c. Inventory Management