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Wipro continues on acquisition trail with Quantech purchase
 
  
   
 
 
 
 deal.
   The agreement
includes upfront cash
payment on closure of
the transaction as well
as earn-outs on
achieving agreed
financial targets over a
three-year period.
According to media
 
 reports, the upfront
amount is about $10m and
the he percentage of
Quantech's earn outs
would be in the "mid
single digits" (of total
revenues) per year.
   US-based Quantech,
which has about 500
employees worldwide,
 
 provides design and
engineering services to
automotive, aerospace
and consumer goods
companies. It reported
revenues of $ 12.7m in
2005 and has grown at
15% CAGR for the last
eight quarters.
   The deal comes just
 
 five months after
Wipro’s acquisition of
Austrian-based
semiconductor design
company, NewLogic for
$56m.
  
 
 Wipro Technologies is to
acquire mechanical
engineering and design
firm Quantech Global
Services and its Indian
subsidiary in a cash
 
 
New book argues for profit over market share orientation
 
 Manage for Profit, Not
for Share
by
Simon-Kucher & Partners
consultants gets at the
heart of a tense and
highly charged issue for
managers the world over:
how to strike the right
balance between profit
and market share.
   How do companies in
mature markets – where
savings from
cost-cutting have been
 
 exhausted and
breakthrough innovations
are hard to come by –
achieve sustainable
increases in profits?
For decades, managers
have been told the
answer lies in pursuing
high market share. But
Hermann Simon, Frank F.
Bilstein, and Frank Luby
argue that this
misguided advice has
destroyed, rather than
 
 created, an additional
profit potential.
   In the book, the
authors contend that
companies can extract a
profit potential of 1% -
3% of revenue by
pursuing a profit,
rather than a market
share, orientation. The
authors lay out a
practical, proven
programme for making
significantly more money
 
 by reconfiguring the
marketing mix to sell
existing products and
services in different
ways. The book offers
practical strategies
managers can use to
differentiate mature
products, raise prices
effectively, time
promotional activities
properly, better
understand consumer
preferences, and more.
 
    A convincing
counter-argument to the
reigning market share
dogma, this book
outlines the new
mind-set and tools
managers will need to
bring their companies
closer to peak profit
performance.
  
 
 
CGI acquires SAP expert Plaut Consulting
 
 As part of its European
growth strategy,
Canada's CGI Group has
acquired Paris-based
Plaut Consulting SAS for
an undisclosed sum. The
French management and
technology consulting
firm is recognised for
 
 its expertise in
implementing SAP
solutions.
   Founded in 1998,
Plaut Consulting SAS is
privately owned and has
annual revenues of
approximately €14m. The
acquisition, expected to
 
 close on 1 June 2006,
will allow CGI to
significantly increase
its footprint in France.
   Plaut employs 120
professionals in the
manufacturing, retail
and distribution,
financial services and
 
 telecommunications
markets.
   Alongside its SAP
integration
specialisation, Plaut
Consulting SAS is also
recognised for its
expertise in business
intelligence (BI),
 
 customer relationship
management (CRM) and
integrated technologies.
  
 
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