IntroductionIn November 1997, NOL's acquisition of APL was successful. Compared to the largest US-based PLA; NOL was a small company from Singapore. Through this acquisition, it appeared that NOL was poised to become a leader in the shipping industry. This acquisition therefore constitutes a strategy by which NOL purchases a 100 percent majority stake in APL with the aim of making the acquired company a subsidiary within its portfolio. Thus, 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 discussion of the issues and strategies that NOL faced or is facing during the acquisition and integration of APL. Challenges Faced by NOL/APL1) Agency RelationshipsThere were separate management structures maintained in the group with the CEO of NOL in Singapore and the CEO in the USA reporting to the Group CEO. This separation between owners and manager creates an agency relationship. This exists when one or more people (the manager(s) hire another person or people) as a decision-making specialist to provide a service. In the modern business, managers must understand the links between these relationships and the effectiveness of the business. The agency relationship between managers and their employees is important because 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 because the principal and agents have different interests and goals. In a large publicly traded company such as NOL/APL, shareholders (principals) do not have direct control when CEOs (agents) make decisions in the middle of paper ......el - with emphasis focused on performance. , value-added services, high asset utilization and cost management In terminals, we focus on increasing productivity and capacity in the areas targeted by our container shipping business. Our logistics unit promotes synergistic growth, developing and securing its links with the core competency of container shippingBest in the world to move and manage containerized trade, providing a lifeline for the global economy.APLResources TangibleTechnological Logistics Technology Cutting edge information Intangible Reputation 150 years of maritime tradition Capabilities Provide global coverage on all major trade lanes Peak schedule reliability Human resources Excellent customer service Core competency Seamless global connectivity