Strategic Alliances in the Airline Industry Essay

Strategic Alliances in the Airline Industry - Essay Example Most researchers have argued that (e.g. Cummins & Xie 2007) firms with relatively high returns on equity, capital and larger market shares are more likely to be acquirers, while those with low return on equity and financially vulnerable firms are more likely to be targets. In finance, it is a common practice to view mergers and acquisitions as manifestations of the market for corporate control. Much of foreign direct investments usually take the form of mergers and acquisition and according to Reis & Head (2005), two-third of FDI that took place between the periods of 1987-2001 was in the form of mergers and acquisition. With their relative advantage of capital, technology, and managerial resources that would otherwise not be available to the host country or other domestic firms, FDIs are often seen as monopoly because of their economic, technology and managerial advantage they posses. Subsequently, host countries enjoy these benefits and costs that otherwise is unavailable to domestic firm. Against this background, this paper seeks to provide an answer to the following research questions What has been the nature of strategic alliances at the airline industry How strategic Allainces in the airline industry does affect Human resource Management issues What are the potential benefits and costs associated with strategic alliances in the airline industry Are strategic alliances in the airline industry worth the trouble 1.1.2 Research Purpose and Objectives This paper is aimed at reviewing strategic alliances in the airline industry, the reasons or motives behind their pursuance and the human resource management issues that firms may face. It starts by reviewing strategic alliances and then proceeds to drawing a line between them. Other objectives will include To analyse and evaluate potential costs and benefits associated with strategic alliances at the airline industry. To find out and states the various ways through which strategic alliances at the airlines industry affect human resource management issues. The research will also seek to understand if strategic alliances at the airlines industry are worth the trouble. 1.1.3 Importance and Rational of Study Going through previous research within the area I realised, resources mastery and understanding of research subject area are necessary for writing a good research paper. I also came to realise through examination of what others have written on merger and acquisition, little or nothing has been said on the impact of mergers on human resource ma