Change Management Strategies and Their Impact on the Stakeholders: A Case Study of Pemancar

Running head: CHANGE MANAGEMENT STRATEGIES
CHANGE MANAGEMENT STRATEGIES AND THEIR IMPACT ON THE
STAKEHOLDERS: A CASE STUDY OF PEMANCAR
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CHANGE MANAGEMENT STRATEGIES1
Introduction
As opined by Bertrand and Capron (2015), the process of merger and acquisitions
have become the recent trend within the framework of the modern-day business world and
the different business enterprises are increasingly resorting to the usage of the same for the
enhancement of the prospects of their business. Friedman et al. (2016) are of the viewpoint
that despite the benefits or the advantages offered by the concerned process there are various
aspects that the business enterprises need to take into account on which the success or the
failure of the concerned process. In this regard, it needs to be said that the management style
or the leadership style, the employee management or employee handling skills used by the
management team, the manner in which the job -design is being created and other attributes
are equally important which affect the success of the merger and acquisitions (Giessner,
Horton & Humborstad, 2016). As a matter of fact, it had been seen that the business
enterprises in order to make the desired or the right kind of changes within the framework of
the new enterprises that they have acquired often take the help of the change management
process for the implementation of the right kind of changes (Bauer, Matzler & Wolf, 2016).
However, at the same time it is seen that for the success of these changes and also for the
purpose of getting the right kind of outcomes the business enterprises need to take into
account the perspective of the employees or the workers which they often fail to do. The
purpose of this paper is to undertake an analysis of the process of merger and acquisition and
its related aspects through the usage of the case study of the acquisition of Pemancar by
NOVA Europe International Corporation.
Overview of the Case Study
The case study “Leadership and change management: A case study of Pemancar” by
Dr Zarifah Abdullah and Dr A. K. Siti-Nabiha (2012) offers an overview of the acquisition of

CHANGE MANAGEMENT STRATEGIES2
Pemancar by the business enterprise NOVA and the various problems that arose because of
the same. More importantly, the case study under discussion here also highlights the diverse
facets of the business operations of the enterprise Pemancar and also the manner in which
they had been used to managing the affairs of their business over the years which in turn had
enabled it to become a profitable business in the nation of Malaysia (Abdullah & Siti-Nabiha,
2012). In addition to this, the case study in a succinct manner also highlights the manner in
which the loss of its technological partner forced Pemancar to undertake the merger under
discussion here with NOVA that in turn tried to reshape the entire organisational structure or
the business activities of the concerned enterprise. It is pertinent to note that the employees of
the business enterprise Pemancar right from the very beginning had been a passive lot and
believed in giving merely the average performance to the enterprise however the enterprise
NOVA after taking over the reigns of the concerned enterprise sought to change this attitude
of the people which in turn resulted in the different issues that the enterprise faced (Abdullah
& Siti-Nabiha, 2012).
Analysis of the acquisition of Pemancar by NOVA Europe International Corporation
Abdullah and Siti-Nabihav (2012) have articulated the viewpoint that one of the major
factors which lead to the acquisition of the business enterprise Pemancar, one of the leading
business enterprises of the nation of Malaysia with the European giant NOVA was because of
the fact that the Japanese counterpart of the concerned enterprise which used to look after the
technical needs of the concerned enterprise merged with its rival. The resultant effect of this
was that the concerned enterprise had to terminate the “Technical Cooperative Agreement” in
the year 2001 and thereby seek a new enterprise which would help it with its technical
requirements and the best possible option which was available to it at that point of time was
the European International Corporation, NOVA ((Abdullah & Siti-Nabiha, 2012). More
importantly, it had been seen that initially when the business enterprise NOVA acquired

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Pemancar in 2001 only 30% of its shares were brought by the concerned enterprise however
by the year 2005 it acquired more than 70% of shares of the enterprise so as to fortify its
position (Abdullah & Siti-Nabiha, 2012). In this regard, it needs to be said that right after its
acquisition of Pemancar, the enterprise NOVA sought to not only remodel the entire
organisational structure of the concerned enterprise but also the organisational or workplace
culture of the enterprise and also the job roles or the job-design of the workers as well. This
in turn gave rise to different kinds of problems like the inability the workers to meet the
target or the performance expectations of NOVA, high employee attrition, employee
downsizing and others which in the present times is adversely affecting the stability of the
concerned enterprise (Abdullah & Siti-Nabiha, 2012).
Elstak et al. (2015) are of the viewpoint that one of the most important factors which
affect the success of the merger and acquisitions is the management style or the leadership
that is being followed by the enterprises during the concerned process. As opined by
Ahammad et al. (2016), this is important because of the fact that the employees from both the
enterprises involved in the process had certain expectations during such a process and the
management teams of both the enterprises plays a pivotal role in the fulfilment or the
management of the same. However, in the particular context of the acquisition under
discussion here it was seen that the management team of the business enterprise NOVA not
only completely redesigned the organisational or the workplace culture of Pemancar but at
the same time the expectations of the employees related to the concerned enterprise were
completely disregarded. As a matter of fact, it was seen that many of the workers were
downsized because of the ineffective performance that they have given over the years and
also Mr. Adam, the Project Manager of the concerned enterprise was demoted because of his
inability to achieve the aggressive target given by the management team of NOVA (Abdullah
& Siti-Nabiha, 2012). In addition to this, it was seen that the employees of the concerned