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A research design helps to decide upon issues like what, when, where, how much, by
what means etc. with regard to an enquiry or a research study. It is an arrangement of
conditions for collection and analysis of data in a manner that aims to combine
relevance to the research purpose with economy in procedure. In fact, the research
design is the conceptual structures within which research is conducted, it constitutes
the blue print for the collection, measurement and analysis of data.
INTRODUCTION
Every organization has its own purpose of operation and pre-determined goals and
objectives to accomplish in relation to the Organization’s mission and vision
statements. The level at which goals or objectives can be actualized depends on the
efficiency and effectiveness of operation and internal control, but for the goals of any
organization to be achieved, some stipulated or laid down principles for its
performance. When these rules are followed simultaneously then the usefulness of
such principle or concept will be achieved. Inventory is defined ads stock of goods a
firm is producing for sales and the components that make up the goods, it is an
itemized list of goods (raw materials, finished goods and work in progress) which
forms certain proportion of organization’s investment.
In recent years Inventory management has attached a great deal of attention from
people both in academia and industries. A lot of resources in the inventory
management practices of organization. It represents one of the most important assets
that most businesses possess, because the turnover of inventory represents one of the
primary resources of revenue generation and subsequent earnings for the company.
Thus it should be managed in order to avoid the inventories at right time in right
quantity. Inventory can be also viewed as an idle resource which has an economic
value. So, better management of the inventories would release capital productivity.
Therefore from above definition inventory is the totality of all the stock, which
includes raw materials, work - in - progress and finished goods and materials
contained in an
Therefore the aim of this project work is to evaluate how a Vidwan aeronautics
private limited, which is manufacturing aircrafts and Spacecraft’s will manage profit
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in inventory management. By using an efficient inventory management and control
techniques like economic order quantity (EOQ), Just in time (JIT), Quick response
manufacture (QRM), among others to render efficient services to their customers,
maximize profit, avoid production hold-ups in factories and to avoid complex result,
Vidwan aeronautics private limited, Bangalore is been selected for this research.
METHODOLOGY
This study was a descriptive study conducted mainly to familiarize with the activities,
processes, policies, programmes and procedures followed in the firm. Required data
for the study was collected through monitoring and questioning. The study is made
personally visiting the company warehouse at Hoskote and data were collected
through primary and secondary data.
PRIMARY DATA
Primary data have been collected through observation, personal interview and
discussion with managers and employees of the various department of the
organization.
SECONDARY DATA
Secondary data have been collected from company’s internal records like annual
reports, website, office records, management reports, outlet of company were used for
collecting relevant information for this study. The data needed to prepare this project
was obtained from other published sources like internet, magazines, business dailies,
journals and business magazines etc.
DATABASE
The research efforts employ both primary and secondary research techniques to
ensure that the foundation of business intelligence and insight is accurate, current, and
reliable. To conduct this study, both Primary and secondary data have been used.
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OBJECTIVES
To conduct in depth analysis of mergers and acquisition.
To evaluate the approach of corporate towards with mergers and
acquisition.
To analyze post-merger operating performance and efficiency of the
acquiring firm.
To analyze the current environment uncertainties and competition.
To familiarize with the business organization merger practices.
LIMITATIONS
Lack of co-operation from certain employees.
Difficult in meeting the higher officials like BODs, CEOs, due to their
busy schedules.
Certain areas have restricted access.
AREA OF STUDY
The study was undertaken at Firstcry.com and the respondents were the Associate
Manager, Department heads and employees from different departments like finance,
maintenance, sales, advertisement, operations etc.
BIBLIOGRAPHY
ANNEXURE
PHOTO GALLERY
INTRODUCTION AND OVERVIEW OF THE STUDY
Mergers and acquisitions (M&A) is a general term used to describe the consolidation
of companies or assets through various types of financial transactions, including
mergers, acquisitions, consolidations, tender offers, purchase of assets and
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management acquisitions. The term M&A also refers to the desks at financial
institutions that deal in such activity.
MERGER
In a merger, the boards of directors for two companies approve the combination and
seek shareholders' approval. Post-merger, the acquired company ceases to exist and
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becomes part of the acquiring company. For example, in 2007 a merger deal occurred
between Digital Computers and Compaq, whereby Compaq absorbed Digital
Computers.
ACQUISITION
In a simple acquisition, the acquiring company obtains the majority stake in the
acquired firm, which does not change its name or alter its legal structure. An
example of this transaction is Manulife Financial Corporation's 2004 acquisition of
John Hancock Financial Services, where both companies preserved their names and
organizational structures.
CONSOLIDATION
Consolidation creates a new company. Stockholders of both companies must approve
the consolidation. Subsequent to the approval, they receive common equity shares in
the new firm. For example, in 1998, Citicorp and Traveler's Insurance Group
announced a consolidation, which resulted in Citigroup.
TENDER OFFER
In a tender offer, one company offers to purchase the outstanding stock of the other
firm, at a specific price. The acquiring company communicates the offer directly to
the other company's shareholders, bypassing the management and board of directors.
For example, in 2008, Johnson & Johnson made a tender offer to acquire Oryx
Biopharmaceuticals for $438 million. While the acquiring company may continue to
exist — especially if there are certain dissenting shareholders — most tender offers
result in mergers.
ACQUISITION OF ASSETS
In an acquisition of assets, one company acquires the assets of another company. The
company whose assets are being acquired must obtain approval from its
shareholders. The purchase of assets is typical during bankruptcy proceedings, where
other companies bid for various assets of the bankrupt company, which is liquidated
upon the final transfer of assets to the acquiring firms.
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MANAGEMENT ACQUISITION
In a management acquisition, also known as a management-led buyout (MBO), a
company's executives purchase a controlling stake in another company, making it
private. These former executives often partner with a financier or former corporate
officers, in an effort to help fund a transaction. Such M&A transactions are typically
financed disproportionately with debt, and the majority of shareholders must approve
it. For example, in 2013, Dell Corporation announced that it was acquired by its
chief executive manager, Michael Dell.
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Consolidation Mergers: With this merger, a brand new company is formed, and
both companies are bought and combined under the new entity. The tax terms are the
same as those of a purchase merger.
DETAILS OF ACQUISITIONS
Like some merger deals, in acquisitions, a company may buy another company with
cash, stock or a combination of the two. And in smaller deals, it is common for one
company to acquire all of another company's assets. Company X buys all of
Company Y's assets for cash, which means that Company Y will have only cash (and
debt, if any). Of course, Company Y becomes merely a shell and will eventually
liquidate or enter other areas of business.
VALUATION MATTERS
Both companies involved on either side of an M&a deal will value the target
company differently. The seller will obviously value the company at the highest
price as possible, while the buyer will attempt to buy it for the lowest possible price.
Fortunately, a company can be objectively valued by studying comparable
companies in an industry, and by relying on the following metrics:
Comparative Ratios: The following are two examples of the many comparative
metrics on which acquiring companies may base their offers:
Price-Earnings Ratio (P/E Ratio): With the use of this ratio, an acquiring
company makes an offer that is a multiple of the earnings of the target company.
Examining the P/E for all the stocks within the same industry group will give the
acquiring company good guidance for what the target's P/E multiple should be.
Enterprise-Value-to-Sales Ratio (EV/Sales): With this ratio, the acquiring
company makes an offer as a multiple of the revenues, again, while being aware of
the price-to-sales ratio of other companies in the industry.
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Replacement Cost: In a few cases, acquisitions are based on the cost of replacing
the target company. For simplicity's sake, suppose the value of a company is simply
the sum of all its equipment and staffing costs. The acquiring company can literally
order the target to sell at that price, or it will create a competitor for the same cost.
Naturally, it takes a long time to assemble good management, acquire property and
purchase the right equipment. This method of establishing a price certainly wouldn't
make much sense in a service industry where the key assets – people and ideas – are
hard to value and develop.
Discounted Cash Flow (DCF): A key valuation tool in M&A, discounted cash
flow analysis determines a company's current value, according to its estimated future
cash flows. Forecasted free cash flows (net income + depreciation/amortization -
capital expenditures - change in working capital) are discounted to a present value
using the company's weighted average costs of capital (WACC). Admittedly, DCF is
tricky to get right, but few tools can rival this valuation method.
Phase 2: Search and screen targets: This would include searching for the possible
apt takeover candidates. This process is mainly to scan for a good strategic fit for the
acquiring company.
Phase 3: Investigate and valuation of the target: Once the appropriate company is
shortlisted through primary screening, detailed analysis of the target company has to
be done. This is also referred to as due diligence.
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Phase 4: Acquire the target through negotiations: Once the target company is
selected, the next step is to start negotiations to come to consensus for a negotiated
merger or a bear hug. This brings both the companies to agree mutually to the deal
for the long term working of the M&A.
Phase 5: Post merger integration: If all the above steps fall in place, there is a
formal announcement of the agreement of merger by both the participating
companies.
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brought in afterward to reconcile the myriad aspects of two complex IT organizations
quickly and economically.
Mergers and Acquisitions is among the leading firms within its industry, and it needs
to retain this position. Mergers and Acquisitions is carefully reviewing its SWOT
analysis and using it to make strategic decisions. For a SWOT analysis to be
conducted of the firm, an interactive process needs to be undertaken by coordinating
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among all the departments of the firm such as finance, marketing, operations, human
resource, logistics, strategic planning, and management.
A SWOT matrix is a 2x2 matrix that has the internal strategic factors listed in the
first row; Strengths and Weaknesses. It has the external strategic factors listed in the
second row; Opportunities and Threats. This SWOT strategic framework allows
company managers too easily
View all of the company’s strengths, weaknesses, opportunities and threats in one
matrix.
Internal Strengths Weaknesses
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Cost Structure: Mergers and Acquisitions’ low cost structure helps it
produce at a low cost and sell its products at a low price, making it affordable for
its customers.
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Entering new markets: Mergers and Acquisitions’ innovative teams
have allowed it to come up with new products and enter new markets. It has been
successful in past, in most of the initiatives it has taken in new markets.
Low current ratio: The current ratio that shows the company’s ability to
meet its short term financial obligations is lower than the industry average. This
could mean that the company could have liquidity problems in the future.
The company has low levels of current assets compared to current liabilities,
and this can create liquidity problems for it in operations.
Quality Control: Mergers and Acquisitions has a lower budget for its
quality control department than competitors. This leads to lack of consistency and
the possibility of damage to quality across its various outlets.
Lack of legal experience and legal department employees are not highly
qualified.
The performance appraisal is not in a systematic manner. People are often not
appraised for their performance. This leads to lower work morale and lack of
promotion opportunities for employees.
E-commerce: There has been a new trend and a growth in sales of the e-
commerce industry. This means that a lot of people are now making purchases
online. Mergers and Acquisitions can earn revenue by opening online stores and
making sales through these.
Social Media: there has been an increase in the number of social media
users worldwide. The three social media platforms; Facebook, Twitter and
Integra, have shown the greatest number of increase in monthly active users.
Mergers and Acquisitions can use social media to promote its products, interact
with customers and collect feedback from them.
Inflation: The inflation rate has been low and is expected to remain low
in the next two years. This is an opportunity for Mergers and Acquisitions as its
cost of inputs would remain low for the next two years.
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Interest rate: Lower interest rates than compared to previous years
provides an opportunity for Mergers and Acquisitions to undergo expansion
projects that are financed with loans at a cheaper interest rate.
Green government drive: this provides an opportunity for Mergers and
Acquisitions for the sale of Mergers and Acquisitions’ products to federal and
state government contractors.
Suppliers: The bargaining power of suppliers has increased over the years
with the decrease in the number of suppliers. This means that the costs of inputs
could increase for Mergers and Acquisitions.
New entrants: there have been numerous players that have entered the
market and are gaining market share by gaining existing companies’ market share.
This is a threat to Mergers and Acquisitions as it can lose its customers to these
new entrants.
Exchange Rate: the exchange rate keeps fluctuating and this affects a
company like Mergers and Acquisitions that has sales internationally, while its
suppliers are local.
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Political uncertainties in the country prove to be a barrier in business,
hindering performance at times and making the business incur unnecessary
costs.
The fluctuating interest rates in the country do not provide a stable financial
and economic environment.
Consumer tastes are changing, and this puts pressure on companies to
constantly change their products to meet the needs of these customers.
Regulations on international trade keep changing, and this requires compliance
by companies if they are to operate globally.
Substitute products available are also increasing, which is threat collectively
for the whole industry as consumption of current products decrease.
The rise in prices of fuel has increased in the input costs for Mergers and
Acquisitions. These costs have also increased as other industries that provide
inputs for this company also have suffered from increasing fuel prices, thereby
charging more.
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COMPANY PROFILE
Firstcry is Asia's largest online store for baby and kids products. We cater to the needs
of our buyers (mothers buying for their kids) from before the kid is born up to his/her
early teens.
COMPANY LOGO
TAGLINE
“Celebrating the happiest cry ever
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CO-FOUNDER & CEO, FIRSTCRY
Co-Founder & CEO, Firstcry Supam Maheshwari is the Co-Founder and Chief
Executive Officer at Firstcry. He has a post graduate degree from IIM Ahmedabad.
Supam started a company called Brain visa along with co-founder Amative Asha
before it was sold. For Supam, the motivation to start a baby care company was
rooted in his personal experiences. As a first-time parent (at the time), he faced a
multitude of issues finding the right products for his baby. This led him to start
Firstcry. As per reports, Firstcry (owned by Brain bees Solutions Pvt. Ltd) has raised
over 125 USD in funding from a number of investors including Rattan Tata, Valiant
Capital Partners, SAIF Partners, and IDG till April 2018. In 2016, the company's
valuation was estimated to be around 300-350 million USD.Dec 3, 2019
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HISTORY
Firstcry acquires Mahindra's baby care franchisee business for Rs 362 crore
The deal is a stock transaction, under which Firstcry owner Brain bees Solutions will
issue shares worth Rs 355 crore to Mahindra Group and pay Rs 7.5 crore in cash.
Online baby products seller Firstcry is acquiring Mahindra Retail, which runs offline
stores under BabyOye brand, for about Rs 362 crore in a landmark deal in the Indian
retail market. The Pune-based startup, founded by serial entrepreneur Supam
Maheshwari, will acquire the franchisee division of Mahindra Retail, part of the $18
billion software to automobiles conglomerates Mahindra & Mahindra.
The deal is a stock transaction, under which Firstcry owner Brain bees Solutions will
issue shares worth Rs 355 crore to Mahindra Group and pay Rs 7.5 crore in cash. The
deal will help Firstcry, which already has 180 franchised stores, create one of the
largest Omni-channel retail plays in the country, with a strong presence both online
and offline.
As a part of the transaction, Firstcry has also raised Rs 226 crore ($34 million) in
fresh funding from Mahindra Group and Switzerland's Dave, besides existing backers
like IDG Ventures India, SAIF Partners, NEA and Vertex. Infosys co-founder Kris
Gopalakrishnan has also invested in Firstcry. Firstcry.com is a one stop shopping
destination for parents, making available for them the widest collection of baby, kids
and new mom products through its online ecommerce store and through its offline
retail chain of 100+ stores. FirstCry.com’s online store was launched in December of
2010, with a belief that there should be a single, convenient and comprehensive
platform for parents that can help them make well researched and informed choices
for products they need for their kid. Within a small span of time Firstcry has grown to
a young and dynamic organization of a thousand employees serving more than a
Million parents in the country, giving them a choice of more than 100000 products
across 1000+ top International and Indian brands like Mattel, Ben10, Pigeon,
Funskool, Hotwheels, Nuby, Farlin, Medela, Pampers, Disney, Barbie, Gerber, Fisher
Price, Mee and more.
FirstCry aims to provide best of the products/brands at the best prices with a great
online shopping experience, fast and reliable delivery service and a prompt customer
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care. FirstCry’s warehouses work round the clock across major cities, and in tandem
with FirstCry own logistics arm, XpressBees, ensure prompt order processing,
delivery and delight to its customers. Crossing the boundaries of Internet, FirstCry
runs 100+ brick and mortar Firstcry stores in cities like Bangalore, Mumbai, Delhi,
Karnal, Ahmedabad, Allahabad, Jaipur, Gurgaon, Udaipur, Chennai, Agra, Raichur,
Kota and more. A unique hospital contact program helps FirstCry reach out to 70000+
new parents every month. For parents across the country, Firstcry is like a helping
hand that makes their parenting experience smoother, richer and more fulfilling. And
we are happy to be a contributor to the happiness and joy of their parenting.
Launched in 2010, first cry.com is Asia’s largest online portal for baby and kids
products and offers a range of top brands for babies kids and moms.firstcry as an
inventory of more than 70000 items from over 700 top international and Indian brands
like Mattel, Ben 10, pigeon, funkskool, hotwheels, nuby, farlin, medela, pampers,
Disney, Barbie, gerber, fisherprice, mee and more . they had also launched its own
private label called babyhug(apparel brand) and cutewalk (footwear brand) which was
about to 20 percent of their revenues.
MISSION
Our mission is to provide best of the products/brands at the lowest prices with great
online shopping experience, free shipping and Prompt customer service. Our
benchmark is to provide our customers with a physical stores shopping experience;
online, without the hassles of driving around the town locating a shop and then a place
to park the vehicle. Our sourcing team works with over 150 vendors internationally,
nationally to source the best products/brands for you at the most affordable price. Our
product photographs can be zoomed so that you can read the details on the product
cover before taking an informed decision. All items originate from our warehouse and
have been sourced from authorized representatives or manufacturers. So shop with us,
sit back and relax. Our logistics and customer support team works very hard to get
your goods delivered at the earliest and respond to any queries that you may have.
VISION
Over time, we hope to 'Change' the way, Indian parents buy, so that they can be at
home to spend more quality time with their 'Little ones' and family.
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CATEGORIES OF FIRST CRY PRODUCTS
Clothing & Fashion
Toys
Books & CDs
School Supplies
Birthday Party Supplies
Baby Diapering
Feeding & Nursing
Bath & Skin Care
Health & Safety Baby Gear Nursery Moms & Maternity Gifts
BUSINESS MODEL
Business to Business
Business to consumer
FirstCry additionally raises US$ 34 million of new equity capital from the Mahindra
Group, Adveq (a Large Pvt Equity Fund), Kris Gopalakrishnan and participation from
all existing shareholders.
FirstCry has established itself as a leading player in India’s baby and kids market with
a base of more than 3 million parents. It has followed an omni-channel strategy right
from inception, having a presence on the web, on mobile and through physical stores
that stand at 180 today.
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COMPETITORS
Kidloo
BabyOye
Hush Babies
Me & Mom
Hopscotch
Flipcart
Amazon
For parents across the country, Firstcry is like a helping hand that makes their
parenting experience smoother, richer and more fulfilling. And we are happy to be a
contributor to the happiness and joy of their parenting.
About firstcry launch by founder Supam Maheshwari We did not face any hiccups
launching FirstCry in the market as during that time the environment had tremendous
hype around the eCommerce market. And by the end of 2010, India’s consumer
facing eCommerce market was growing at a whopping 49.1 per cent and reached a
market size of $9.9 billion the next year. Thus, it was a good time for us to launch a
niche e-retail company then.
INTRODUCTION
FirstCry.com’s online store was launched in December of 2010, with a belief that
there should be a single, convenient and comprehensive platform for parents that can
help them make well researched and informed choices for products they need for their
kid. Within a small span of time FirstCry has grown to a young and dynamic
organization of a thousand employees serving more than a Million parents in the
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country, giving them a choice of more than 100000 products across 1000+ top
International and Indian brands like Mattel, Ben10, Pigeon, Funskool, Hotwheels,
Nuby, Farlin, Medela, Pampers, Disney, Barbie, Gerber, Fisher Price, Mee and more.
First Cry aims to provide best of the products/brands at the best prices with a great
online shopping experience, fast and reliable delivery service and a prompt customer
care. FirstCry’s warehouses work round the clock across major cities, and in tandem
with FirstCry own logistics arm, XpressBees, ensure prompt order processing,
delivery and delight to its customers. Crossing the boundaries of Internet, FirstCry
runs 100+ brick and mortar Firstcry stores in cities like Bangalore, Mumbai, Delhi,
Karnal, Ahmedabad, Allahabad, Jaipur, Gurgaon, Udaipur, Chennai, Agra, Raichur,
Kota and more. A unique hospital contact program helps FirstCry reach out to 70000+
new parents every month. For parents across the country, Firstcry is like a helping
hand that makes their parenting experience smoother, richer and more fulfilling. And
we are happy to be a contributor to the happiness and joy of their parenting.
Website
http://www.firstcry.com
Industries
Retail
Company size
1001-5000 employees
Type
Privately Held
Founded
2010
Specialties
e-commerce Retail, Baby & Kids Products, Offline Baby & Kids Retail
ChainBrainbees Solutions Private Limited's Annual General Meeting (AGM) was
last held on 25 September 2019 and as per records from Ministry of Corporate
Affairs (MCA), its balance sheet was last filed on 31 March 2019.Directors of
Brainbees Solutions Private Limited are Amitava Saha, Ravi Chandra Adusumalli,
Supam Satyanarayan Maheshwari, Munish Ravinder Varma, Benedict Jerome
Mathias, Zhooben Dossabhoy Bhiwandiwala, Amit Gupta, Paul Alexander
Davison.
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FINANCIAL REPORTS RELATED:
Balance Sheet
Paid-up Capital
Reserves & Surplus
Long Term Borrowings
Short Term Borrowings
Trade Payables
Current Investments
Inventories
Trade Receivables
Cash and Bank Balances
Profit & Loss
Total Revenue (Turnover)
Total Expenses
Employee Benefit Expenses
Finance Costs
Depriciation
Profit Before Tax
Profit After Tax
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actively involved in giving shape to and operationalising the consolidation, to ensure
consumers and other stakeholders see tangible benefits at the earliest. Supam said,
Our partnership with the Mahindra Group will bring in synergies that will help us
scale and achieve our profitability goal much faster. Together, we will continue to
scout for more opportunities for inorganic growth. Earlier this year, Hopscotch raised
$13 million in Series C funding in a round led by Facebook Co-founder Eduardo
Saverin, eyeing the huge market opportunity. The consolidation sends a strong signal
to the market and other players. FirstCry has further tightened its grip, but organising
the unorganised $12 billion industry remains a massive task ahead.
SUMMARY METRICS:
Founding date 2010
Firstcry total funding $418.4m
Firstcry latest $150m
funding size
Time since last 2months ago
funding
Firstcry investor’s new enterprise associates, valiant capital partners,
Temasek holdings, IDG ventures, vertex ventures, Kris
Gopalakrishnan, Adveq, Mahindra rise, Softbank vision
found, Softbank group corporations.
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It started with Brainvisa E-learning company (which is a sister company of First
cry)which focused on helping businesses around to increase the learning & training
effectiveness by designing learning solutions which again focused on defined business
objectives.
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Gerber, Fisher Price.FirstCry aims to provide best of the products, brands at the
best prices with a great online shopping experience, fast and reliable delivery
service and a prompt customer care.
The warehouses work round the clock across the cities, and in tandem
with FirstCry own logistics arm, XpressBees, which ensures prompt order
processing, delivery and delight to its customers.
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To give a taste of online shopping to in shop customers, firstcry started installing 32”
touch screens in its retail stores, so that customers coming into their shops can also
see what their online store has to offer them.
INTERNET MARKETING:
Building a high performing team for delivering products, SEO and Web Analytics.
Creating platforms like WorldofMoms.com for capturing ‘digital moms’ beyond
transactions portraying an example of creative content, community, On Page
Optimization, Off-Page Optimization by maximizing the visibility of client sites in the
digital space, through the management of SEO, through Keyword research,
Competitor Analysis, Meta Tag Creation, Developing the Website.
Creating successful store-front landing pages. Cart, Loyalty Cash Programs, Online
Sales Return Cash Refund, Customer Profile, Reviews and Ratings, Baby Gear
Assembly
MOBILE MARKETING:
FirstCry capitalized on mobile growth by launching mobile products like
FirstCry.com mobile web, android & iOS Apps by posting messages like “Get
everything your baby needs with new and intuitive FirstCry.com Android App! Plus
the ‘big store for little ones’, always handy on his mobile.”
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INTERNET MARKETING:
Building a high performing team for delivering products, SEO and Web Analytics.
Creating platforms like WorldofMoms.com for capturing ‘digital moms’ beyond
transactions portraying an example of creative content, community, On Page
Optimization, Off-Page Optimization by maximizing the visibility of client sites in the
digital space, through the management of SEO, through Keyword research,
Competitor Analysis, Meta Tag Creation, Developing the Website.
Creating successful store-front landing pages. Cart, Loyalty Cash Programs, Online
Sales Return Cash Refund, Customer Profile, Reviews and Ratings, Baby Gear
Assembly
Says Supam Maheshwari, Founder Director, "Since our inception, our philosophy has
been to solve the pain of shopping for parents. Nothing makes us happier than times
such as these when customers tell us that we're succeeding in our mission. As an
overarching leader in our space, we will continue to work towards providing the best
brands, products and service and therefore continue to wow parents."
The Child Awards are a measure of the people's voice. Child magazine, one of the
most reputed parenting magazines in the world, carried the questionnaire for four
months in 2012 and also promoted the poll through its Facebook page. Thousands of
readers responded to the poll via mail and online and the results were collated
internally. The poll is entirely a reflection of the readers mandate and Child magazine
did not intervene in any way.
Commenting on the award, Anuj Jain, Sr Vice President Marketing, said "The award,
coming from the world renowned Child magazine and through a poll that is
completely unbiased and credible, is special and for us it is like Mommies saying "we
love you". We enjoy one of the highest customer repeat rates in the industry, standing
at over 50% and this award reinforces the reason why. We humbly accept the award
as encouragement to work harder for Mommies and listen harder to Mommies, after
all Mommies know best!"
FirstCry.com is the clear leader in its niche and, if industry estimates are to be
believed, the portal would have close to 50% share of the online baby and kids market
and far ahead of the second player. The business has been innovative on a lot of fronts
including starting its own delivery infrastructure to control delivery times, operating a
chain of franchisee stores to increase customer reach and starting a loyalty program
for customers, to name just a few. FirstCry.com also has a sister site Goodlife.com to
cater to the lifestyle needs of customers. Goodlife.com allows the FirstCry customer
base to shop for all its needs at one go - two sites, one cart and the same high quality
service. It's clear that FirstCry.com is setting the standard to delight parents and the
Child Award comes as one announcement of this.
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ANALYSIS AND INTERPRETATION OF THE STUDY
TABLE-1
GENDER CLASSIFICATION
Female 44 44
Male 56 56
Other 0 0
INFERENCE
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From the above table it is understood that out of the 100 respondents who are
considered for the study, 44% of male and 56% of female.
Hence it is found that male respondants are more than female.
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GRAPH-1
GENDER CLASSIFICATION
28%
22%
Female
Male
Other
Total
50%
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TABLE-2
MARITAL STATUS
Married 11
Unmarried 89
Total 100
Source: Primary Data
INFERENCE:
This analysis shows that out of 100 respondents 11 persons are married and 89
persons are unmarried.
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GRAPH-2
MARITAL STATUS
45%
6% Married
Unmarried
Total
50%
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TABLE-3
QUALIFICATION
SSLC OR 10TH 0
PRE UNIVERSITY 0
UNDER GRADUATION 69
POST-GRADUATION 0
OTHER 31
TOTAL 100
Source: Primary Data
INFERENCE:
This analysis shows that from the respondents 69 persons are under graduation, and
31 persons are other qualification.
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GRAPH-3
QUALIFICATION
120
100
100
80 SSLC OR 10TH
69 PRE UNIVERSITY
UNDER GRADU-
60 ATION
POST-GRADUATION
OTHER
40 TOTAL
31
20
0 0 0
0
40
TABLE-4
OCCUPATION
Student 78
Employee 16
Business 0
Other 6
Total 100
Source: Primary Data
INFERENCE:
This analysis that the maximum numbers of people78 out of 100 are students, in
which 16 persons are employees. The number of people in business is 0 and 6 people
are other.
Hence the majority of respondents are students.
41
GRAPH-4
OCCUPATION
120
100
100
80 78
Student
Employee
60 Business
Other
Total
40
20 16
6
0
0
42
TABLE-5
ANNUAL SALARY
100000 – 200000 20
Below 100000 13
None 58
Total 100
Source: Primary Data
INFERENCE:
This analysis show that from the respondents the annual salary of 20 persons are
between 1-2 lakhs, annual salary of 13 persons are 3 lakhs and above, and the annual
salary of 13 persons are below 1lakh and the remaining 58 persons have opted for
none.
Hence the maximum number of respondent salary is between 1-2 lakhs.
43
GRAPH-5
ANNUAL SALARY
120
100
100
80
100000 – 200000
300000 and above
60 58 Below 100000
None
Total
40
20
20 13 13
44
TABLE-6
AWARENESS OF TERM MERGERS AND AQUISITION
Yes 60
No 40
Total 100
Source: Primary data
INFERENCE
The analysis shows that the majority are aware of term mergers and acquisition where
as 60% are opted for yes and rest 40% opted No.
Hence the majority are aware of the term mergers and acquisition..
45
GRAPH-6
AWARENESS OF TERM MERGERS AND AQUISITION
30%
20%
Yes
No
Total
50%
46
TABLE-7
QUALIFICATION
SSLC 0
PUC 6
Undergraduate 70
Others 24
Total 100
Source: Primary data
INFERENCE
This analysis that the maximum numbers of people 70 out of 100 are undergraduate,
24 persons are others. 6 people are PUC.
Hence majority are undergraduates.
47
GRAPH-7
QUALIFICATION
120
100
100
80
70 SSLC
PUC
60 Undergraduate
Others
Total
40
24
20
6
0
0
48
TABLE-8
REASON FOR AVULSION IS SYNERGY, WHERE SYNERGY
INCLUDES
Lower taxes 16
Cost reductions 16
Revenue enhancements 20
All of these 48
Total 100
Source: Primary data
INFERENCE
The analysis shows that the majority reason for aquision is synergy are all the three
options whereas lower taxes has 16 and cost reduction has 16 and revenue
enhancements has 20 and majority has all of these .
Hence the majority are all of these .
49
GRAPH-8
REASON FOR AVULSION IS SYNERGY, WHERE SYNERGY
INCLUDES
120
100
100
80
Lower taxes
Cost reductions
60 Revenue enhancements
48 All of these
Total
40
20
20 16 16
50
TABLE-9
AGREEMENT BETWEEN TWO OR MORE FIRMS TO
COOPERATE TO ACHIEVE A JOINT GOAL
Merger Alliance 42
Consolidation 10
Joint venture 42
Strategic allowance 6
Total 100
Source: Primary data
INFERENCE
The analysis shows that the agreement between two or more firms to cooperate to
achieve a joint goal is due to merger alliance where as 42 persons opted merger
alliance 10 people for consolidation, 42 people for joint venture and only 6 people are
strategic allowance.
Hence the majority are for merger allowance and joint venture.
51
GRAPH-9
AGREEMENT BETWEEN TWO OR MORE FIRMS TO
COOPERATE TO ACHIEVE A JOINT GOAL
120
100
100
80
Merger Alliance
Consolidation
60 Joint venture
Strategic allowance
42 42 Total
40
20
10
6
0
52
TABLE-10
INITIAL STAGE IN MERGERS AND AQUISION PROCESS IN
INDIA
Propasal phase 37
Planning Exit 25
Business Valuation 25
Structuring Business 13
Total 100
Source: Primary data
INFERENCE
The analysis shows that the Initial stage in mergers and aquision process are 37
people voted for proposal phase, 25 voted for planning exit, 25 people voted for
business valuation and 13 voted for structuring business.
Hence the majority is for proposal phase.
53
GRAPH-10
INITIAL STAGE IN MERGERS AND AQUISION PROCESS IN
INDIA
120
100
100
80
Propasal phase
Planning Exit
60 Business Valuation
Structuring Business
37 Total
40
25 25
20 13
54
TABLE-11
HOW SHOULD A MERGED FIRM MAINTAIN FEXIBILITY
High Debt 12
Total 100
Source: Primary data
INFERENCE
The analysis shows that how should a merged firm maintain fexibility where as the
majority are for low to high debt that is 44 people , 20 people for low to moderate
debt, 24 people are high to low debt and 12 people are high debt.
Hence the majoruty is for low to high debt.
55
GRAPH-11
HOW SHOULD A MERGED FIRM MAINTAIN FEXIBILITY
120
100
100
80
Low to high Debt
Low to moderate Debt
60 High to low debt
High Debt
44 Total
40
24
20
20
12
56
TABLE-12
FORM OF ACQUISITION THAT DO NOT REQUIRE A FORMAL
VOTE BY SHARE HOLDERS OF THE ACQUIRED FIRM
Consolidation 51
Acquisition of stock 17
Acquisition of assets 17
None of these 15
Total 100
Source: Primary data
INFERENCE
The analysis shows that the form of acquisition that do not require a formal vote by
share holders of the acquired firm is 51 people are for consolidation, 17 people are for
acquisition of stock, 17 people are for acquisition of assets and 15 people are for none
of these.
Hence the majority are for consolidation.
57
TABLE-12
FORM OF ACQUISITION THAT DO NOT REQUIRE A FORMAL
VOTE BY SHARE HOLDERS OF THE ACQUIRED FIRM
120
100
100
80
Consolidation
Acquisition of stock
60 Acquisition of assets
51
None of these
Total
40
20 17 17 15
58
TABLE-13
STRATEGIES FOR A A PUSH DOWN OF DEBT ON
ACQUISITION HAVE TO BE ANALYSED UNDER WHICH
SCENARIOS
Foreign Debt 19
Local Debt 20
Both A and B 53
None of these 8
Total 100
Source: Primary data
INFERENCE
The analysis shows that strategies for a a push down of debt on acquisition have to be
analysed under which scenarios initially 19 people opted for foreign debt, 20 for local debt,
and majority are for both A and B that is 55 and 8 for none of these.
Hence the majority are for both A and B.
59
GRAPH-13
STRATEGIES FOR A A PUSH DOWN OF DEBT ON
ACQUISITION HAVE TO BE ANALYSED UNDER WHICH
SCENARIOS
120
100
100
80
Foreign Debt
Local Debt
60 53 Both A and B
None of these
Total
40
19 20
20
8
60
TABLE-14
EFFECTS ON EMPLOY DUE TO MERGERS OF ACQUISITIONS
CAN BE
Reduction in employees 20
Rationalisation 20
Job losses 15
Total 100
Source: Primary data
INFERENCE
The analysis shows that Effects on employ due to mergers of acquisitions can be 20
people are reduction in employees, 20 people are for rationalisation, 15 people are for
job losses, and majority is for alkl the above that is 45 people.
Hence the majority is for all the above.
61
GRAPH-14
EFFECTS ON EMPLOY DUE TO MERGERS OF ACQUISITIONS
CAN BE
120
100
100
80
Reduction in employees
Rationalisation
60 Job losses
45 All of the above
Total
40
20 20
20 15
62
TABLE-15
WHICH OF THE TYPE OF MERGERS AND ACQUISITION
Conglomerate 18
Horizontal 4
Vertical 8
Total 100
Source: Primary data
INFERENCE
The analysis shows that which of the type of mergers and acquisition is 18 people
said that conglomerate, 4 said that is horizantal, 8 said that is vertical and majority 70
people said that all the three types are of mergers and acquisitions.
Hence the majority is for all the above.
63
GRAPH-15
WHICH OF THE TYPE OF MERGERS AND ACQUISITION
120
100
100
80
70 Conglomerate
Horizontal
60 Vertical
All of the above
Total
40
20 18
8
4
0
64
TABLE-16
REASONS FOR MERGERS AND AQUISITION
Financial synergy 20
Accelerate Growth 20
Tax considerations 1
Total 100
Source: Primary data
INFERENCE
The analysis shows that the reasons for mergers and aquisition 20 people are for
financial synergy, 20 people for accelerate growth, 1 person for tax considerations and
majority is for all the above that 59 people.
Hence the majority is for all the above.
65
GRAPH-16
REASONS FOR MERGERS AND AQUISITION
120
100
100
80
Financial synergy
Accelerate Growth
59
60 Tax considerations
All of the above
Total
40
20 20
20
1
0
66
TABLE-17
AGE
18 -24 years 90
25 - 30 years 9
30 and above 1
Total 100
Source: Primary data
INFERENCE
The analysis shows that the majority is 90 people are between 18 – 24 years age, 9
people are between 25 – 30 years age, 1 person is 30 and above.
Hence the majority are between the age of 18 – 24 years.
67
GRAPH-17
AGE
120
100
100
90
80
18 -24 years
25 - 30 years
60
30 and above
Total
40
20
9
1
0
68
TABLE-18
POOR STRATEGIC IN MERGERS AND ACQUISITION
REFERRED TO
Failure position 64
Good position 13
Both A and B 23
Total 100
Source: Primary data
INFERENCE
The analysis shows that Poor Strategic in mergers and acquisition referred where as
majority is 64 people are for failure position, 13 people are for good position, and 23
people are for both A and B.
Hence the majority is for failure position.
69
GRAPH-18
POOR STRATEGIC IN MERGERS AND ACQUISITION
REFERRED TO
120
100
100
80
Failure position
64
Good position
60
Both A and B
Total
40
23
20 13
70
TABLE-19
ACQUISITION OF A FIRM INVOLVED WITH A DIFFERENT
PRODUCTION PROCESS STAGE THAN THE BIDDER IS
CALLED A _____ ACQUISITION
Conglomerate 42
Forward 30
Backward 17
Horizontal 11
Total 100
Source: Primary data
INFERENCE
The analysis shows that the acquisition of a firm involved with a different production
process stage than the bidder is called a _____ acquisition where as 42 people for
conglomerate, 30 people are for forward, 17 people for backward, and 11 people are
for horizantal.
Hence the majority is for conglomerate.
71
GRAPH-19
ACQUISITION OF A FIRM INVOLVED WITH A DIFFERENT
PRODUCTION PROCESS STAGE THAN THE BIDDER IS
CALLED A _____ ACQUISITION
120
100
100
80 Conglomerate
Forward
60 Backward
42 Horizontal
40 Total
30
20 17
11
72
TABLE-20
SPOILING TACTICS
Green Mail 15
Stripping tactics 26
Poison Pill 13
Total 100
Source: Primary data
INFERENCE
The analysis shows that the spoiling tactics majority 46 people said that delaying
tactics legally,15 people are for green mail, 26 people are for stripping tactics and 13
people are for poison pill.
Hence the majority is for delaying tactics legally.
73
GRAPH-20
SPOILING TACTICS
120
100
100
80
Delaying tactics legally
Green Mail
60
46 Stripping tactics
Poison Pill
40
Total
26
20 15 13
0
No. of respondents
74
TABLE-21
FOR A PUSH DOWN DEBT ONACQUISITION HAVE TO BE
ANALYSED UNDER WHICH SCENARIOS
Foreign Debt 19
Local Debt 18
Both A and B 53
None of these 10
Total 100
Source: Primary data
INFERENCE
The analysis shows that a push down debt onacquisition have to be analysed under
which scenarios where as 19 people opted for foreign debt, 18 people opted for local
debt, and majority 53 people opted for both A and B and 10 people opted for none of
these.
Hence the majority is for both A and B.
75
GRAPH-21
FOR A PUSH DOWN DEBT ONACQUISITION HAVE TO BE
ANALYSED UNDER WHICH SCENARIOS
120
100
100
80 Foreign Debt
Local Debt
60 53 Both A and B
None of these
40 Total
19 18
20
10
76
TABLE-22
AN AGREEMENT BETWEEN TO OR MORE FIRMS TO
COOPERATE TO ACHIEVE A JOINT GOAL IS CALLED
Merged alliance 44
Consolidation 10
Joint venture 42
Strategic Allowance 4
Total 100
Source: Primary data
INFERENCE
The analysis shows that An agreement between to or more firms to cooperate to
achieve a joint goal is called 44 people said that merged alliance, 10 people said that
consolidation, 42 people said that joint venture, and only 4 people said strategic
allowance.
Hence the majority is for merged allowance
77
GRAPH-22
AN AGREEMENT BETWEEN TO OR MORE FIRMS TO
COOPERATE TO ACHIEVE A JOINT GOAL IS CALLED
50
45 44
42
40
35
30 Merged alliance
Consolidation
25
Joint venture
20 Strategic Allowance
15
10
10
5 4
78
TABLE-23
CONVEYS THE INTEND TO DISPLAY THE EXISTING
MANAGEMENT AND SEEK CONTROLS OF AFFAIRS
Acuisitions 20
Takeover 15
Both A and B 60
None of these 5
Total 100
Source: Primary data
INFERENCE
The analysis shows that the Conveys the intend to display the existing management
and seek controls of affairs where as 20 people voted for acquisitions 15 people for
takeover, and 60 people are for both A and B and 5 for none of these.
Hence the majority is for both A and B.
79
GRAPH-23
CONVEYS THE INTEND TO DISPLAY THE EXISTING
MANAGEMENT AND SEEK CONTROLS OF AFFAIRS
120
100
100
80 Acuisitions
60 Takeover
60
Both A and B
None of these
40
Total
20
20 15
5
0
No. of respondents
80
TABLE-24
TAX IMPLICATIONS FACTOR UNDER MERGERS AND
ACQUISITIONS INCLUDES:
Total 100
INFERENCE
The analysis shows that tax implications factor under mergers and acquisitions
includes: 13 people are for tax burden for vendors, 27 for deffered taxes for investors,
10 people for tax burden for the company and majority is 50 people are for all the
above.
Hence the majority is for all the above.
81
GRAPH-24
TAX IMPLICATIONS FACTOR UNDER MERGERS AND
ACQUISITIONS INCLUDES:
120
100
100
Tax burden for venders
80 Deferred Taxes for
investors
60 Tax burden for the
50
company
40 All the above
27 Total
20 13 10
82
TABLE-25
FIRM IS MOST LIKELY TO BE A BARGAIN FOR AN AQUIRER
IF
Total 100
Source: Primary data
INFERENCE
The analysis shows that firm is most likely to be a bargain for an aquirer therefore 33
people said that when its ratio is less than one, 28 people said that when The
combination is more expensive than internal expansion, 26 people said when It’s q
ratio is greater than one and 13 people said when The replacement cost of its assets is
less than the value.
Hence the majority is when its ratio is less than one.
83
GRAPH-25
FIRM IS MOST LIKELY TO BE A BARGAIN FOR AN AQUIRER
IF
120
100
100
It’s ratio is less than one
The combination is more
80 expensive than internal
expansion
60 It’s q ratio is greater than
one
40 33 The replacement cost of
28 26 its assets is less than the
value
20 13 Total
0
No. of respondents
84
TABLE-26
STEPS INVOLVED IN ANY MERGERS AND ACQUISITIONS
Pre-aquisition 22
Total 100
Source: Primary data
INFERENCE
The analysis shows that steps involved in any mergers and acquisitions 8 people are
for a search and screen targets, 22 people for pre acquisition, 5 people are for
investigate and valuation of the target, and majority 65 people are for all the above.
Hence the majority is for all the above.
85
GRAPH-26
STEPS INVOLVED IN ANY MERGERS AND ACQUISITIONS
120
100
100
A search and screen targets
80
65
Pre-aquisition
60
Investigate and valuation
of the target
40 All the above
22 Total
20
8 5
0
No. of respondents
86
TABLE-27
PROBLEMS OF MERGERS AND ACQUISITIONS
Overly diversified 18
Reduced flexibility 17
Total 100
Source: Primary data
INFERENCE
The analysis shows that Problems of mergers and acquisitions where as 12 people
said that mergers overely focused on acquisition, 18 people are for overly diversified,
17 are for reduced flexibility, and majority is for all the above.
Hence the majority is for all the above.
87
GRAPH-27
PROBLEMS OF MERGERS AND ACQUISITIONS:
120
100
100
20 18 17
12
88
TABLE-28
WHICH REDUCE THE AVERAGE PRODUCTION COST
FOLLOWING A MERGER
A vertical merger 32
A conglomerate merger 38
Total 100
Source: Primary data
INFERENCE
The analysis shows that which reduce the average production cost following a merger
32 people are over for A vertical merger, 38 people are for A conglomerate merger,
20 people are for net operating losses of an acquired firms and 10 people are for the
existence of economies and scale.
Hence the majority is for A conglomerate merger.
89
GRAPH-28
WHICH REDUCE THE AVERAGE PRODUCTION COST
FOLLOWING A MERGER
120
100
100
A vertical merger
80 A conglomerate merger
Net operating losses of an
60 acquired firms
The existence of
40 38 economies and scale
32
Total
20
20
10
90
TABLE-29
IS A DEFENSIVE TACTIC AGAINST A HOSTILE TAKE OVER
BY TENDER OFFER
Conglomerate merger 30
Acquisition 44
Total 100
Source: Primary data
INFERENCE
The analysis shows that a defensive tactic against a hostile take over by tender offer
whereas 11 people for Saturday nignt special, 30 people are for conglomerete merger,
44 people are for acquisition, and 15 for leveraged buyout (LBO).
Hence the majority is for acquisition.
91
GRAPH-29
IS A DEFENSIVE TACTIC AGAINST A HOSTILE TAKE OVER
BY TENDER OFFER
120
100
100
20 15
11
93
CONCLUSION
Firstcry.com is an india’s largest online kids store, today firstcry.com has become the
ultimate destination for almost all parents who love to buy stuff online in our country.
There is no other market place which is providing stiff competition to firstcry.com as
an online retail market place.
The customers are aware largely of the product with the help of youtube and through
social media and the product still has a way to increase its advertising channels to
reach the relatively large number of people.
Therefore the company has aided with a required information which is hugely useful
to do this project.
94
SUMMARY OF RECOMMENDATIONS
95