Dewaal Pharmaceuticals and Biohealth Labs - PDF
Added on 2021-05-31
13 Pages3497 Words128 Views
Leadership ManagementProfessional DevelopmentData Science and Big Data
|
|
|
Running head: DEWAAL PHARMACEUTICALS AND BIOHEALTH LABS 1DeWaal Pharmaceuticals and BioHealth LabsNameStudent NumberSubject TitleSubject CodeWord CountName, student number, assessment number
DEWAAL PHARMACEUTICALS AND BIOHEALTH LABS 2Executive SummaryMergers and acquisitions are commonly used by organizations to increase their revenue. The successes and failures of such ventures depend on various factors. This essay analyzes the merger between DeWaal Pharmaceuticals and BioHealth Labs to determine the factors that are affecting its success. The analysis entails the examination of the organizational culture and management styles, which are the conflicting values in the merger. The analysis also critiques the process used in the integration. Recommendations for the conflicting values, such as designing the top management, cultural change and changing the management style, are given. Lastly, the essay evaluates the usefulness of the management theories, concepts, and practices used. Name, student number, assessment number
DEWAAL PHARMACEUTICALS AND BIOHEALTH LABS 3IntroductionMergers and acquisitions are a common practice among contemporary organizations. They are mainly used to increase market share, gain a competitive advantage and explore new markets (Rafferty& Restubog, 2010). Additionally, the success of these strategies depends on theorganizations’ ability to adapt to changes. According to Rafferty and Restubog (2010), over the years, merging has led to the failure of organizations due to mistakes made in the post-merger phase. To fully understand such errors, this report analyzes the post-merger process of DeWaal Pharmaceuticals and BioHealth Labs. Conflicting ValuesOne of the conflicting values affecting integration after the merger between DeWaal Pharmaceuticals and BioHealth Labs is related to their cultures. DeWaal Pharmaceuticals is a Dutch company that highly values its beliefs, which is expressed in Kaspar van de Velde's refusal to shut down the Indonesia plant since it is linked to the colonies. On the other hand, BioHealth Labs is an American company, which does not highly regard such values because Steve Lindell is willing to shut down the plant based on performance. Cultural conflicts are sometimes experienced after mergers as revealed by a study carried out on integration after a merger between two National Health Service trusts (Ovseiko, Melham, Fowler, & Buchan, 2015). Ovseiko et al. (2015) state that the study showed the conflict resulted from differences in operation because one was team-oriented and the other was not. The theory of mergers and acquisitions and Cooper's model explains that the cultures of companies involved in a merger have to be similar for the merger to succeed (Stahl & Voight, 2004). Based on this assessment, the conflict being experience is inevitable. Name, student number, assessment number
DEWAAL PHARMACEUTICALS AND BIOHEALTH LABS 4The other conflicting values between DeWaal Pharmaceuticals and BioHealth Labs is related to the management styles used. According to Junni and Sarala (2014), two studies regarding the effect of leadership and employee relationship during mergers revealed that a good relationship assists in reducing the employees’ change resistance. For this case, the lack of effective leadership has made some employees refuse to move to America, and others have quit. Steve Lindell employs a democratic style of leadership while Kaspar uses the autocratic one. For example, Steve discusses ideas with Kasper before making any decisions, but Kaspar mainly makes decisions without considering Steve’s ideas, which gives him the upper hand. According to Bhatti et al. (2012), democratic leaders make decisions with the help of others while autocraticleaders make decisions without the contributions of others. Generally, both leaders are using the situational leadership theory because the decisions made are task oriented and aimed at getting themselves out of the post-merger situation (Korzynski, 2014). Overall, both leaders exhibit different styles of management and it is affecting the employees’ morale. CritiqueThe staffing process Steve Lindell and Kaspar van de Velde are using during integration is not effective. Firstly, the two need to define the criteria for hiring the top executives of the newcompany. Initially, the two had decided that Kaspar would choose the leaders of human resource,global marketing, and Europe operations. Steve would choose the leaders of finance, research and development and the entire company's operations. These top managers are selected based on who Steve and Kaspar deem fit. This method is ineffective because Steve is reluctant to accept some of Kaspar’s choices such as Christian Meyer as the head of Human Resource and some executives like Sandy Allen had left. To avoid such conflicts, Steve and Kaspar should have outsourced the hiring process to a consulting agency. According to Rajamäki (2017), a study Name, student number, assessment number
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Mergers and Acquisitions: Conflict and Resolutionlg...
|15
|3460
|56
Contemporary Management: Conflict Theory, Human Relations Theory, and Integration of Top Managementlg...
|14
|3253
|201
Challenges and Issues in Mergers and Acquisitionslg...
|16
|4022
|49
Case Analysis: Conflicting Values and Integration Challenges in Bio Health Labs and DeWaaL Pharmaceuticalslg...
|7
|1908
|434
Merger between Dewaal and BioHealth: A Critical Analysislg...
|14
|3659
|127
Mergers: Reasons for Failure and Recommendations for Successlg...
|13
|3557
|494