Introduction to Business Acquisition

Added on - 01 Mar 2020

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Running head: BUSINESS ACQUISITION AND E-COMMERCE1Business Acquisition and E-CommerceStudent’s Name:Institution Affiliation:
BUSINESS ACQUISITION AND E-COMMERCE2IntroductionBusiness acquisition is the process adopting another company to build strength orweakness of acquiring another company. There are different advantage of business acquisitionwhich includes the building of technologies that are present in other companies, increase ofeconomies of scale and many others. Many businesses tend to thrive after going throughacquisition since they are able to consolidate all the powers, resources, and customers. In today’sbusiness world, there are improved business operations that have gone through tremendoustechnological change such using online platforms to reach the targeted customers. The moveaided by the high rate use of the internet from the individual to business arena. The onlinebusiness operation is also known as electronic commerce. The paper therefore examines thebusiness and technical issues faced by Asif the founder of FlashMobz mobile retailer inacquiring of PhoneRus outlet. The paper further examines the process of transition of thecompany from the conventional method to the new technological method known as e-commerce.Every business tends to face challenges when transforming from one type of business toanother or transferring from one country to another (Cirjevskis, 2017). The principal businesschallenges that FlashMobz faced in an acquisition of the PhneRus are numerous and include thefollowing; communication challenges that resulted from the employee's differences. When Asifbought the PhoneRus, the employees were never laid down and, therefore bringing together thestaffs to work together with the teams at the FlashMobz was not an easy task as there weredifferent business cultural behavior. Inadequate information among the employees createddistrust among the employees hence leading to lower engagement (Coate, 2013). Therefore, toovercome this, it was essential to keep all employees from both the business with constantinformation to build and regaining the loss of transparency and trust. The second challenge was
BUSINESS ACQUISITION AND E-COMMERCE3the retention of employees. Many at times when company comes together or merge bestemployees tend to resign or leave as a result of the negative attitude felt by the employees. It wasa tough decision for Asif to identify and decide on who stays and who goes since those that wereskilled and best in their work were not willing to go away unlike those that were not performingvery well. The situation was dilemmatic since Asif was likely to lose all the employees. Thestaffs’ negative attitudes that developed as a result of uncertainty of the leadership, future, jobsecurity, negative perceptions of the leadership style (Le et al., 2014). The acquisition of thePhoneRus by Asif brought different organizational changes that led to stress anxiety and conflictof roles by the staffs. Meaning, Asif had to work proactively to maintain and regain the trust ofthe best employees from phones. Asif faced the organizational cultural differences as theemployees from the phones had entire different organizational culture as they were not ready toreplace the culture to conform with the FlashMobz’s. Therefore was very important to carry outthe culture survey to understand the similarities and differences between the two corporatecultures. The third business challenge that Asif met was inadequate of supply incurred bycustomers from the products supplied by PhoneRus as the employee's performance had reducedduring the acquisition process.The electronic commerce is all about business; therefore, an efficient usage is called forto achieve the business goals (Guzzo et al., 2016). The principal business issues resulting fromtransformations include change of the marketing strategy, improvement of the marketing andcompetition, the cost incurred and the measure of the success. The technical issues thatFlashMobz is like to face when is transforming to the e-commerce include the change of thetechnology, security issues, transactions changes and marketplace set up. The company willmeet a dramatic shift in technology as it is transforming from the traditional commerce is
BUSINESS ACQUISITION AND E-COMMERCE4characterizable by the face-face involvement of customers and seller at all stages of thetransaction (Boateng, 2016). The company, therefore, will have to acquire new technologicalequipment such as the desktop, internet providers and set up the social network platforms toenable the success of the traditional method of operation to the new internet usage business. Thebusiness suffered challenges of poor customer care as many customers’ issues went unnoticedduring the first few days. The problem caused by a large number of messages that are streamingin the company’s website due to a large number of internet subscribers. When customer’s issuesgo without reply by the company, they tend to get bored and feel unappreciated that might resultfrom a shift of customer’s attention.Asif overcomes the organizational cultural difference through creating a transition periodto enable the migration of the existing PhoneRus practices to the FlashMobz practices. Duringthis time, there was excellent communication from Asif highlighting every staff's concern,questions and assuring them of the support that they would need. During that stage, Asif sets adate that all the old structures will cease to operate and when the time that the newly introducedmechanism will take off then communicated to the staff (McCourt, Low, & Tappin, 2017). Thesecond stage is ensuring an excellent training to the acquired teams so that they conform to thepractices and protocol of the new organization. It is advisable to offer training to the old staffs onthe changes that are about to occur. For example the accounting officer making the requiredchanges like in the financial reports and the information technology officer, gaining moretraining on the new technical ideas brought in. The technical challenges that faced FlashMobz intransiting into e-commerce are the problem of addressing the internal transitional changes thatrequired Asif to make several implementation processes such as proper internal planning andeducation of the existing staffs. The company has to offer delivery services.
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