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
One mode to achieve the comprehensive healthcare services is through the mergers and acquisitions. However, during the course when the integrated company takes place, there are many challenges that the new company should deal to have concerted mission to achieve the desired goals.
Integration after merger is often tricky. As a merger, Bournemouth and Poole need to learn to combine their individual efforts and resources by bringing every essential element of their organizations together. This process requires a lot of planning and
fail (Cheng, 2012). Mergers and acquisitions are much common in these days and only a few of them are end up in successes. Even though mergers and acquisitions are not result much successes rate, many organizations are still preferring it because, it is used as a cooperative strategy but nowadays it is used for cooperative development. The cultural differences and merger integration can be considered as an important factor for the failure rate but this study mainly focused
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
Conglomerate mergers result in joining of firms which compete in different product markets, and which are situated at different production stages of the same or similar products. That is to say, neither the products nor the inputs of these merging firms are the same. Conglomerate mergers result in significant advantages gained by the merging firms since they are the fastest means of entry into different activity fields in the shortest possible time span. Moreover, they reduce the financial risks by “not putting all the eggs in one basket” (Gaughan, 2007). There are three types of conglomerate mergers:
...dditionally, the merger can take place in smaller phases. For instance the first phase may include change of the physical look of the branches and the signage - – so as to convey a consistent view and experience for its customers. This phase may also include effective communication to the employees to educate them about the merger, ensure them of their positions and encourage them to participate in the merger. Second, the firm can totally combine the bank’s technology and the information systems which will allow the merged firm to operate as a single entity and to become fully operational. The management should implement the merger with care and prudence, aiming for minimal disruption for the customers and should communicate extensively to ensure all its stakeholders are kept fully informed as they make changes.
The soft factors can make or break a successful change process, since new structures and strategies are difficult to build upon inappropriate cultures and values. These problems often come up in the dissatisfying results of spectacular mega-mergers. The lack of success and synergies in such mergers is often based in a clash of completely different cultures, values, and styles, which make it difficult to establish effective common systems and structuresBased on the case study, extensive research and annual reports of AT&T the writer has mapped AT&T in the different domains. AT&T should strive to attain a perfect circle as close to the centre as possible, which indicates total synergy, order and equilibrium. Where the circle is skewed drastic change is needed as it moves closer to the outer ring of chaos:
That brings a great challenge to succeed, and lets the leadership work in new and innovative ways to make such a merger successful. McClelland’s theory states, in regards to the need for achievement, that people strive “To excel one’s self.to rival and surpass others. to increase self-regard by the successful exercise of talent” (Kreitner & Kinicki, 2010, p. 215). By this definition, the merger would motivate leadership to excel in the face of a challenge, and to increase their professional self-regard in their success in doing so. On an individual level, you are asking the performers and employees to recognize both economic and social climates, and to come together in action to save both their careers, as well as their passion for life....
Companies merge and acquire other companies for a lot of strategic reasons with different degree of success. The success of a merger is measured by whether the value of the acquiring firm is enhanced by it. The impact of mergers and acquisitions on organization can be small and big in other cases.
Mergers and acquisitions immediately impact organizations with changes in ownership, in ideology, and eventually, in practice. There are multiple reasons, motives, economic forces and institutional factors that can, taken together or in isolation, influence corporate decisions to engage in mergers or acquisitions. The financial risks of merging with or acquiring an organization in another country and how those risks can be mitigated are important issues for corporations to conduct research on. This paper will examine the sensible and dubious reasons for mergers and acquisitions and the benefits and costs of the cash and stock transactions.
Conflict seems inevitable when trying to merge two companies. Conflict is described as the “Process which begins when one party perceives that the other has frustrated or is about to frustrate, some concern of his” (Kumar, 2009). Synergon’s CEO uses a “take no prisoners” approach and would fire most of the management team within 12 months of taking over a company using an approach they call neutron bombing. In cases where both companies are successful, like in the case of Synergon Capital and Beauchamp, you add even more conflict. The managers of Beauchamp are used to operating in a positive way that has produced profits for the company and you add Nick Cunningham a manager of Synergon who is used to restructure management in newly acquired poorly run companies; something has to give to make it successful.
The first step will be forming the team. We should consider whether we are going to form for specific projects across different divisions, or if we want to put teams together based on expertise. Team selection can be tough during a post-merger. There would often be more employees than
The XYZ Corporation was established in 2004 and their main office is located in Vancouver, BC. The company’s main objective is to create new innovating technology for media devices, computers, and digital music players. They deal with the design, manufacturing and marketing of the products. XYZ Corporation has been providing Canadians with groundbreaking technology throughout the years and continues to create new technology to provide others with top-level technology. Although, recently their success rate has appeared to drop rapidly due to a number of factors that will be explored throughout this case study. Their main objective is to target the problems so that they can work towards having the issues resolved as quickly as possible. If they do not take any course of action, the state of the company may be in extreme danger. This case study is designed to explore the areas of the company and discover the problems blocking the XYZ Corporation from success.
When entrepreneurs plan their business future they will consider how they can increase their business size or profit in a short period. Entrepreneurs may consider growing their business or company by using a merger or an acquisition. These methods can be a speed up tool and a short cut to enlarge their business. (Burns, 2011) Also they can reduce competition, make it easier for entrepreneurs to think about the market and product development and risk reduction. Furthermore, some lesser – known companies can improve their firm’s image and market power by using merger and acquisition with larger firms. However, there may be risks associated with merger and acquisition related to lack of finance and time. (Burns, 2011) This essay will discuss more deeply the advantages and disadvantages of using mergers and acquisitions, showing how it can affect firms and market with the case study.