Concept of Merger and Acquisition Report
11 Pages3233 Words70 Views
Added on 2020-04-07
Concept of Merger and Acquisition Report
Added on 2020-04-07
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Running head: IT Management Issues1IT Management IssuesNameAffiliate Institution
Running head: IT Management Issues2Executive SummaryThis report is outlines the concepts of merger and acquisition that Monet management hasdecided to venture into. Merger involves mutual agreement between two or more businesses tocombine and become single business. However, success of a merger depends on the efforts andstrategies of the merging businesses. Information technology has led to development of newcommunication channels thus facilitating customer connection. In this generation nearlyeverybody is connected via the internet and people can easily connect and chat and shareexperiences. This has led to expectations of customers changing like they expect quicker, betterand quality services. Clients now know that they possess power to choose what they want, whereand when to have or go. Therefore, Monet implementing ERP systems and intelligent electronicportal is a way to satisfy these customer demand. Advantages goes on and include gainingcompetitive advantage, market dominance, reduced operational costs among others. However,such a decision to merge come up with some disadvantages including employee competition andrivalry. Implementing ERP will make management of the different departments includingaccounts, tour guides, bookings among others. Therefore, Monet should implement the decisionbecause with it comes along a package of several advantages.
Running head: IT Management Issues3Table of ContentsExecutive Summary.........................................................................................................................2Introduction......................................................................................................................................4Concept of Mergers and Acquisition...............................................................................................4Information Technology and Information System Issues................................................................5Acquiring New Customers..............................................................................................................7Conclusion.......................................................................................................................................9Recommendation.............................................................................................................................9References......................................................................................................................................10
Running head: IT Management Issues4IntroductionThe current business environment is that of globalization and developing economy, and thusmany businesses are trying to attain the maximum market attainable in both levels of market, thatis, global and local markets. Everyday business people struggle to attain their ideal objective. Forthis reason, businesses have been working extra hard to tout-do their competitors in severaldifferent ways one of the commonly known way is merger and acquisition (M&A). The mainobjective of expanding and growing a business is to gain financial stability and profitmaximization for stakeholders. (Gleich, Kierans, & Hasselbach 2010).The assumptions made include the following: Monet has already merged, it has implemented theERP and the intelligent portal. Also the loyalty scheme is being practiced.Mergers and acquisitions (M&A) offers firms and companies possibility of a wider and biggershare in the market and diversification. Monet (group of 5 holiday resorts) are utilizing thistechnique for the purpose of growing the 5 resorts. The objective of the management’s decisionwas expanding their market, increasing the number of clients so as to get more, achievingfinancial stability and become more competitive. With the current conditions of economy M&Ahave achieved quality across the global market. Also technological advancement, competitionand globalization has facilitated growth of M&A. (Dringoli, 2016).Concept of Mergers and AcquisitionMerger involves mutual agreement between two or more businesses to combine and becomesingle business. The idea of M&A has brought about increased profits and reduced operationalcosts through operational and structural benefits brought by merger. The benefits that comearound by merging are vast and include the following: the business is able gain power, controland dominance in the market environment, efficiency value is increased like cost savings andenrichments, resource sharing bring about economies of scale offering competitive advantagedue to reduced costs, the risk of utilizing innovative methods of financial risk management isgreatly reduced and the best benefit is tax advantage. (Sherman, 2011).However, success of a merger depends on the efforts and strategies of the merging businesses. Ifthis is not done well by the Monet management, it will lead to some disadvantages including:experienced workers will be lost, small merging business workers need exhausting training, the
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