Mergers and acquisition essay

These organisations are created by leaders who are capable of meeting the difficult challenge of implementing effective change.

Mergers and acquisition essay

Mergers and acquisitions 1. This case study highlights that despite optimistic expectations, mergers and acquisitions repeatedly failed, in part because of differences in culture, underestimation of coordination failures and the different perception of languages used.

Both organisations have distinctive and valuable cultural elements. The culture is not normally recognised within the organisations, because basic assumptions and preferences channel the thought and intended actions operated at a preconscious stage. In addition, the influence of language and culture is that, without language, a certain level of cultural awareness or cultural growth could never take place.

As a result, in any cross-cultural communication, the occurrences of more opportunities for people from different cultures to assemble and communicate arise due to merger or acquisition of firms.

It is possible that specialisation in function and skills leads to a high degree of specialisation in language that results in a blindspot toward the language of others which makes post-merger communication more complex.

The challenge of a change in business strategy with an insufficient knowledge of management system has led to a poorly constructed performance management system. As a result, issues start increasing.

The issues includes cultural conflicts, failure of in-depth research market, no contingency plans when strategies backfired, over confidence of leadership from CEO Jacquie Tudori, insufficient total quality management in products and services and manpower, lacking of the boards participation in decision making and the lack of control and command over outsourcing contracts.

The lack of human resource management has resulted in the high turnover rate where employees from the acquired firm felt inferior and experienced a loss of social standing as though they have been conquered.

This has also affected on the customer services performance where employees face role ambiguity due to the shortage of manpower and the improper behaviour of insincerity while serving the customers hastily.

Yet, because the research information was insufficient and inaccurate, the decision made to focus on the baby boomers backfired as the perception of Templeton Caravans was too common and not luxurious enough.

As a result, the domino effects of issues have indirectly affected the sales revenue to decline drastically. The common links of issues that lead to merger failure are cultural conflict, communication, unexpected extent of constant decrease performance for employees after merger, lack of management control and high turnover rate.

Solutions Conducting a Cultural Audit. Both the acquiring and acquired organisations should conduct a cultural audit to ascertain the differences in cultural values, beliefs, norms, practices and procedures. The closer the cultural fit is the lesser adversity when integration of acquisitions begins.

Creating and aligning new task.

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Creation of new task allows employees from both the acquiring and acquired are aligned to work together to get the job done. Employees are repressed from using the full extent of the familiarised culture habits and perceptions from previous tasks and are able to conciliate on a new shared way of doing things.

Management should share as much information as it can with employees before, during the process, and after the acquisition. The mere act of communication and showing of empathy towards employees indirectly causes a shift towards a positive attitude when learning different specialisation of skills in specialised functions.

This will reduce the language conflict after merger. Preparing and delivering a realistic preview of merger. A realistic preview of merger illustrates the job expectation adjusted through acquisition will prepare employees to manage new or modified job demands more rationally.

Mergers and acquisition essay

Furthermore, the acquired organisation gain beneficial prospects as employees are provided with a clear perception of the acquiring goals, culture and work redesigning.

This will allow employees to be more open and accepting to the organisation and management changes.Mergers & Acquisitions (M & A) is a general term used to refer to the consolidation of companies. Merger is the corporate action where two companies decide to combine their operations.

Both the companies involved in the merger cease to exist resulting into a combined new company. Mergers and Acquisitions (M&A) occur when two or more organisations join together all or part of their operations (Coyle, ).

Strictly defined, a corporate takeover refers to one business acquiring another by taking ownership of a controlling stake of another business, or taking over a business. Nov 19,  · Essay on Merger, Acquisition, and International Strategies An important aspect of strategic management relates to business growth due to mergers and acquisitions.

Both local and international expansion can be fueled by the use of mergers or acquisitions.5/5(1).

Mergers and Acquisitions - New York Essays

Mergers And Acquisitions. The value of mergers and acquisitions remain a topical issue within the contemporary business world. Whether these activities are beneficial to the economy or are simply meant to stifle competition is open to debate.

Mergers and acquisition essay

Mar 02,  · View and download mergers and acquisitions essays examples. Also discover topics, titles, outlines, thesis statements, and conclusions for your mergers and acquisitions essay.

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