IntroductionIn November 1997, NOL's acquisition of APL was successful. Compared to the largest US-based APL; NOL was a small company in Singapore. Through this acquisition, it appeared that NOL was poised to become a leader in the shipping industry. Therefore this acquisition is a strategy through which NOL acquires a 100% controlling interest in APL with the intent of making the acquired company a controlled business within its portfolio. As such, APL became a wholly owned subsidiary of Singapore-based NOL, a global transportation and logistics company engaged in shipping and related businesses. Below is the study of issues and strategies that NOL has faced or is facing during the acquisition and integration of APL. Problems/ Challenges Faced by NOL/APL1) Agency Relationships Separate management structures were maintained in the group with the NOL CEO in Singapore and the CEO in the US reporting to the group CEO. This separation between owners and managers creates an agency relationship. This occurs when one or more people (the principal or principals) hire another person or people as a decision-making specialist to perform a service. In modern companies, managers must understand the links between these relationships and the company's effectiveness. The agency relationship between managers and employees is important as it is directly related to how the company's strategies are implemented. This separation between ownership and managerial control in this case can be problematic since the principal and the agents have different interests and objectives. In a large publicly traded company like NOL/APL, shareholders (principal) have no direct control when CEOs (agents) make decisions t...... middle of paper ...... el - con l Focus on throughput, value-added services, high asset utilization and cost management At terminals, we focus on increasing productivity and capacity in the target areas of our container shipping business. Our logistics unit is driving for synergistic growth by developing and securing its connections with container shipping. Core Competence The best in the world at moving and managing containerized trade, providing a lifeline to the global economy.APL Resources Tangible Technological Cutting-edge information technology Intangible Reputational 150 years of heritage in the shipping industry Capabilities Providing worldwide coverage on all major trade routes .Industry-leading scheduling reliabilityHuman resourcesExcellent customer serviceCore expertiseSeamless global connectivity