Impact of Mergers and Acquisitions on Firms

This assignment delves into the multifaceted consequences of mergers and acquisitions (M&A) on firms. It requires an in-depth analysis of how M&A activities influence a company's financial performance, its position within the competitive landscape, and the overall organizational structure. Students are expected to draw upon academic literature and real-world examples to support their arguments and demonstrate a comprehensive understanding of the complexities involved in M&A.

Running head: A Business Report Based On Monet 1
A BUSINESS REPORT BASED ON MONET
Name
Institution
Course
Date

A Business Report Based on Monet 2
A BUSINESS REPORT BASED ON MONET
Introduction
This business report is based on a group of 5 holiday resorts in Australia which have decided to
merge and form one business operation for the purpose of delivering better services to their customers
and increase on their profits. The new business name resulting from the amalgamation of the resorts is
Monet due to the merging, the business has increased on the varieties of services provided, for example,
they provide a wider range of living quarters providing Backpacker, bed and breakfast, homes to luxuries
suites in and around the country (Nocke & Yeaple, 2007, p.365). The business will provide different
services on booking websites such as booking.com, travel.com.ac among others to enable customers’
book directly. The booking will be managed via a single website. To promote customer satisfaction, a
mobile application will be developed to help the customers manage their own account. The business
intends to vary prices on the changes in demand, seasonal factors and environment among others
(DeYoung, et al., 2009, p.100)
Assumptions made
Various assumptions were made in relation to the new business emerged. Among others include;
It is also expected that the emerging of the businesses will increase in the business effectiveness
and efficiency. It is clear that big firms enjoy economies of scale as a result of reduced costs of operation,
for example managerial economies of scale, research economies of scale among others. It is assumed that
there will be an effective technological development as a result of the single website which has been
introduced (Shaver, 2006, p.970).

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Through merging, it is assumed that the level of risks and uncertainties faced by the business will
considerably reduce. Among others, some of the uncertainties that the business expects to overcome
include losses due to high competition from other big firms that, managerial risks will also be curbed
through the use the website. There is also an assumption of ensuring the maintenance of the standards that
were initially set up and to ensure effective usage of the project resources (Martynova & Renneboog,
2008, p.2148)
It is also assumed that there will be an improvement in in the monitoring and tracking of the
activities to be carried on. In other words, there will be a vibrant quality assurance team. The monitoring
in this case is the process of tracking expected risks that are likely to rise during the business execution. It
is important to take note of uncertainties that may cause business failures, this helps in preparing and
setting strategies that are necessary for curbing the risks and uncertainties. It involves overseeing all the
tasks and operations of the business to ensure achievements of the goals and objectives of the business
since a single website is used, monitoring is expected to advance (Hauswald & Marquez, 2006, p.970)
Decisions proposed
The top management of Monet has finalized the following decisions to affect the business via the
website;
1. Monet loyalty scheme which will play the role of reward customers with airport
transfers, free tours, and free meals. This will aiming at building and maintaining a strong
customer relationship. The team will foresee the needs of the customers, marketing aspect and
how effective the business can be when it comes to its customers and this technology will
automatically lead to improvement of customers’ service and will attract more customers (Cao,
& Zhang, 2011, p.170).

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2. To determine the strategic value, the company opt to develop Interactive tools in
order to allow customers to choose, which particular tour they would like to undertake and aims
at improving the degree of customer satisfaction that leads to strengthening of ties. Consequently
the relationship between the business and the customers will be improved (Evans, & Lindsay,
2013). The interactive platform will help the customers make their specifications needs, referring
to what type of product and service they would want to be offered, when and where, basing on the
fact that the business expects an increase in the number of customers. It also aims at developing
the capacity of the business to interact with its customers. The analysis of this data may result in
the establishment of a one-to-one approach encompassing a customized offer of products and
services, adapted to the specific needs and expectations of each customer (Jiang, & Qureshi,
2006, p.50).
3. They have decided to develop an integrated ERP in order to enable management
of the operation through a single Information Technology system. This will enable overseeing
and managing of all the tasks that are involved in an operation with an intention of maintaining a
certain standard of serving or achieving a specific set goals and objectives (Farrell & Shapiro,
2010)
4. A new ‘’Web 4.0 –level’’ ultra-intelligent electronic portal is to be created in
order to enable customers self-manage their accounts with the company and to customize their
shopping/booking experience. This is very vital in terms of technological change that is geared
towards efficiency of the business. It will keep the relationship of the customers and the business
making their booking faster and effective (Devos, Kadapakkam & Krishnamurthy, 2008,
p.1180).
Critique to the management decision

A Business Report Based on Monet 5
The subsequent management decisions are likely to affect the network of relationships
established, especially with strategic business partners and the customers by creating effective
communication which is quick, faster and easy (Dehning, Richardson, & Zmud, 2007, p810).
However the technology is not 100% secure. Technically, the business website can be constrained
by the unfriendly or poor user interface that may limit the client-staff interaction. If effective and
latest technology is not applied, information regarding the presence of the business may be
limited for example, If Adds and pop ups in websites are not enabled and this will also reduce the
business information about its presence (Angwin, & Vaara, 2005).
The decisions will improve on the role played by marketing department especially in line
with customer relationship. They will integrate marketing, sales and services functions through
the interaction of the business process, technological solutions and information resources, in
order to maximize user friendliness with the customers. There will be facilitation of the
relationships between companies, customers, service suppliers and workers (Shim & Okamuro,
2011, p.193).
As a way of improving the business efficiency and effectiveness, it is vital for the
emerging to take place. There are expected decrease in the operational cost as the costs of rent is
expected to reduce, the transportation costs will as well reduce if the businesses are emerged
together. This is because the workers will no longer incur extra expenses in paying for the other
services, Moreover; the company is even still cable of retaining and improving its sales basing on
the fact that it will employ online technology of a single website. This type of operations favors
big firms, implying that it’s a good strategy in expanding the business operations. Through the
amalgamation,
The management decision will help the business to reduce the human resource costs.
These are the costs that result from recruitments, training and redundancy. It will all be looked
upon and possible solutions of reducing such costs will be implemented. This will reduce on the

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business expenditure and the extra liquid capital will be ploughed back into the business. The
company will attain an advantage of improving the Information Technology department which is
expected to reduce the number of workers needed in operation accompanied by improved
efficiency. However, this factor will also lead to unemployment of some workers. The decisions
will help the business to highlight a need in the improvement of financial and human resources to
help in the implementation of the technological innovation and improving the motivation of the
workers respectively
Through the above decisions, the business is expected to get more clients and also
maintain its earlier customers and this will ensure continuity of the business and the costs will
reduce if tasks are assigned to the respective personnel. However, the business may lose some
customers who are not used to online bookings and those who cannot access the website due to
the ignorance about the change in the website name.
To a certain extent, the merging of the resorts may negative affect the business
operations, for example, the bureaucratic process involved in decision making may hinder
effective adjustments to new changes, it’s also most likely that the expansion of the business as a
result of merging may attract government intervention in form of high taxes which will in turn
increase the costs and expenses.
The difference between information system and information technology
The two terms are sometimes considered the same, used interchangeably, however,
information technology is a subset of information system. Information system is a general term
for the systems, people and all processes designed to create, store, process and distribute
information. Whereas information technology falls under information system and particularly
deals with the technology involved in the system. It is a study, design, support or management of
computer based information system. It includes Hardware such as hard disks, monitors,
keyboards and all the other tangible components of the computer, software such as Microsoft

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windows, among other intangible components. It also includes database and networks (Paulin,
Ferguson & Bergeron, 2006, p.915).
Information technology and information system are playing both negative and positive
role, for example creating a variety of job opportunities and long term professional advancement.
On the other hand, information technology is increasingly creating unemployment, internet
scams, and hacking among other.
Impact of information technology and information system
Over the past few years there has been a strong technological evolution in the field of information
and communication with a significant impact on management. Companies are investing huge amounts in
relationship technologies, leading to new forms of interaction. Therefore information technology has got a
great impact on customers’ choice, continued patronage, brand loyalty business employees among others.
Basing on the fact the company will be developing a mobile application, information technology
is expected to act as a primary tool for getting in touch with customers (Shapiro, 2010, p.50). Clients
will be making orders concerning bookings, expected services, making inquiries and making reviews of
the services rendered. This therefore is expected to improve on customer satisfaction hence improving on
customer loyalty.
A well designed websites with external ads and popups are likely to attract more customers. If the
company uses affiliate marketing, more customers will be informed and following the websites’ link. In
this way, a bigger and wider range of customers will be attracted to into the website leading to increased
sales (Shapiro, 2010, p.850).
Business strategy to attract customers from the competitors

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In order to manipulate the market in and to maintain its reputation in the industry Monet
management has put out the following measures to attract more customers
Strong Information Technology department to ensure a more user friendly interface of the
company website and hence more customers will be expected. Customer support can also be improved as
a result of this department. The information technology of the business is also worked on to improve on
its efficiency (Zhang, 2010). This is because the effectiveness of the business basically relies on the
department. Basing on the fact that the company operates mainly online, it is very vital to ensure effective
Information Technology department and Monet management is to ensure this (Altunbaş, & Marqués,
2008, p.210).
Improving on the quality of services delivered to the clients by enhancing customer support. This
is intended to improve on customers’ satisfaction as well as the workers, more especially the consultants
of the business. As part of the business decision, it will ensure timely execution of the activities as it is to
be scheduled. Adjustment will be made accordingly to the proposed schedules to ensure effective
achievement of all the operations and each of the activity will be communicated and published via the
website.
Innovation is yet another strategy that will help the company to favorably compete in the
industry. It has maintained a remarkable position in leading innovation and invention of new technologies
for example that technic of working on a single website which is a new technology in place
Other business opportunities
Through the merging of the 5 resorts, the business has a high completive advantage over the other
existing firms in the industry. This implies that the firm/ business has an advantage of creating a
monopolistic environment by creating entry restriction. This can be through offering high quality services
at a subsidized price, adapting extensive advertising, and pricing technique. The business also has a

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higher potential in maximizing revenue, given the fact that operational costs will be reduced as a result of
merging. The company has an upper hand in carrying out research to improve on the quality of services
offered. It is typically true that big firms enjoy research economies of scale. It is therefore typically
relevant for the firms to maintain and carry on the decision of merging into one company as a positive
result is expect (Chemmanur, Krishnan & Nandy, 2011, p.4050)
References
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institutions: a review of the post-2000 literature. Journal of Financial services research, 36(2-3),
87-110.
Nocke, V., & Yeaple, S. (2007). Cross-border mergers and acquisitions vs. greenfield foreign
direct investment: The role of firm heterogeneity. Journal of International Economics, 72(2),
336-365.
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acquisitions. Academy of Management Review, 31(4), 962-976.
Martynova, M., & Renneboog, L. (2008). A century of corporate takeovers: What have we
learned and where do we stand?. Journal of Banking & Finance, 32(10), 2148-2177.
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Evans, J. R., & Lindsay, W. M. (2013). Managing for quality and performance excellence.
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