Learning outcomes This case will enable students to: understand reasons for mergers and acquisitions (M&A); identify and explain the risks associated with M&A and corresponding risk mitigation approaches; and decision-making on postmerger integrations. Case overview/synopsis The case discusses the integration dilemma around ChocoTravel’s M&A of Aviata. Both are among the largest online travel agencies in Kazakhstan. The acquisition of Aviata was not the first M&A deal for ChocoFamily – the Holding Company of ChocoTravel; however, it was the largest one. By combining their operations, ChocoTravel and Aviata together could capture 70% of the market share and become the market leader. Although the M&A had high potential toward superior business performance, it had significant risks. Threats of integration failures often make M&As fail. The management of ChocoTravel, therefore, had to consider several factors that could act as potential threats to post-M&A integration. First, each company had its own operating model and corporate culture. Second, both brands, ChocoTravel and Aviata, were well established and recognized in the market; each of them had its own loyal clients. Taking into account low switching costs to customers, the CEO of the new joint company needed to decide whether to integrate ChocoTravel and Aviata or keep them separate or even discontinue one. So, the important thing was not to disrupt operations and lose customers while introducing the post-M&A integration strategy. This case focuses on the challenges of post M&A integration. Complexity academic level The case targets last year’s bachelor’s students, Master of Business Administration/Master of Science students as part of the business strategy, marketing and branding and M&A classes. It allows students to have a broad in-class discussion and apply knowledge to make strategic management decisions in postmerger integration situations. Supplementary materials Teaching notes are available for educators only. Subject code CSS 11: Strategy.
This paper aims to investigate factors affecting the access of small and medium-sized enterprises (SMEs)to external financing in Kazakhstan. The data set of this research is obtained from the Business Environment and Enterprise Performance Surveys (BEEPS) conducted by the World Bank in Kazakhstan in 2019. The results of the analysis showed that such factors as revenue, the availability of collateral, previously received loans, have a positive impact on the decision to grant a loan by financial institutions. However, the results of the analysis did not show a statistically significant effect of the size and age of the enterprise on access to credit, which was proved by a number of studies in other countries. The results of the analysis also showed that access to external financing is significantly limited for enterprises implementing innovative products or services, which is explained by the riskiness of these enterprises from the point of view of creditors. It is interesting to note that the analysis showed a statistically significant positive relationship between access to credit and a female manager, which proves that there is no discrimination on gender grounds when making a decision to issue a loan in Kazakhstan. The results obtained can be used to develop more effective conditions for lending to SMEs, as well as to improve scoring models for SMEs, where the main criteria may be the history and potential of the company, rather than the current financial situation and the availability of collateral.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.