Mergers Case Study

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The strategies that corporations use to increase their economic influence have become an expansive science. One of the most advantageous yet economically risky strategies would be that of corporate takeovers. This modern day tactic has many forms including mergers and acquisitions. Patrick A. Gaughan Ph.D. is a graduate level professor at Fairleigh Dickenson University and renowned expert in the field of business. He defines a merger as the following: “…two companies combine in a friendly deal that often features extensive negotiations between the managers of the two companies.” (((Gaughan, Patrick A., pg. 241))) A merger is simply two, usually struggling companies coming together with the common goal of pooling one another’s resources to increase…show more content…
This is perhaps the most challenging aspect of any integration process. The success or failure of a merger or acquisition lies almost solely with the management’s guiding hand of leadership. Timothy Galpin, a retired HR manager who experienced two mergers in his seventeen year long career, reveals in his book, The Complete Guide to Mergers and Acquisitions: Process Tools to Support M&A Integration at Every Level, that, “Merger integration is without a doubt the ultimate change-management challenge.” (((Galpin, Timothy, pg. 55))) Therefore, in the case of mergers and acquisitions the human resource management teams of both companies take on the mammoth task of integrating the two corporate cultures. It is neither an easy undertaking, nor is it one that takes a short amount of time. Galpin also states that “Eighty-five percent of executives involved in mergers reported that the largest problems they ran into were differences in management style and practices.” (((Galpin, Timothy, pg. 4))) The management of one company has to be willing to integrate their thinking with the thinking of the company’s management that they are merging with and vice versa. Natin Vizirani, a transitional organizational managing consultant whose writings appear regularly in the pages of the popular publication, SIES Journal of Management, emphasizes in his article entitled, “An Integrative Role of HR in Handling Issues Post Mergers and Acquisition”, that, “Cultural Differences at the top management level are most likely to influence the merging company’s ability to realize synergies”. (((Vizirani, Natin, pg. 83))) This can obviously cause problems. The stubborn unwillingness of either team to change from its current administration control will negatively influence a

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