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Leadership and Management Change in Merger and Acquisition Strategy

   

Added on  2023-01-13

11 Pages3450 Words69 Views
Leadership Management
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Leadership and
Management Change
Leadership and Management Change in Merger and Acquisition Strategy_1

EXECUTIVE SUMMARY
The following report is based on merger and acquisition strategy adopted by the
corporations functioning across the globe. The first task indicates that culture difference is the
primary reason behind the failure of merger and acquisition strategy. The second task talks about
the merger of two law firms in order to expaSnd the presence of acquirer within the confines of
Scotland post the BREXIT phenomenon. It is recommended that an organisation should follow
the steps of Lewin's Change Management Model while executing M & A to ensure that the
concerned move yields the desired results.
Leadership and Management Change in Merger and Acquisition Strategy_2

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Task 1...............................................................................................................................................4
Critically evaluate this statement “Most merger and acquisitions fail to achieve the original
objectives for the undertaking (Smith 2003) and a great number of investigations into this
phenomenon cite ‘cultural differences’ as the major source of the problem.”.......................4
Task 2...............................................................................................................................................8
With reference to an appropriate academic model identify and evaluate how this merger might
be practically managed...........................................................................................................8
RECOMMENDATIONS.................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Leadership and Management Change in Merger and Acquisition Strategy_3

INTRODUCTION
Change is an integral and inseparable part of a corporation. To facilitate change within
the confines of an enterprise, it is essential for the company to exercise effective leadership and
management (Agarwal, 2018). In this relation, merger and acquisition is an effective strategy that
is adopted by companies across the globe with a view to expand their business network. The
present project is divided into 2 tasks. The first task is concerned with critical evaluation of a
statement. The second task stipulates the manner in which merger can be practically executed
and managed with the help of effective academic models. This task will witness discussion over
the merger of two law companies, namely, Lindsays and Hadden Rankin into Lindsays.
Task 1
Critically evaluate this statement “Most merger and acquisitions fail to achieve the original
objectives for the undertaking (Smith 2003) and a great number of investigations into this
phenomenon cite ‘cultural differences’ as the major source of the problem.”
Merger as well as acquisition tends to imply a substantial change within the premises of a
company. It is usually perceived by scholars as well as witnessed by researchers that mergers and
acquisitions generally result into a failure and are not able to generate significant value for
shareholders (Ahmed, 2018). A large number of studies conducted over this subject stipulate that
the accumulation phase of acquisition and merger procedure is a complex area of focus that
implies the failure of M & A. In this relation, it is identified that whenever an organisations
adopts merger or acquisition strategy and put it into force, it's main aim is to facilitate expansion
of business networking. The move is intended to be executed for enabling the increment of
revenues as well as profits. However, it is seen that most of the times, M & A fail to accomplish
these objectives owing to a number of reasons. Such sources of the problem are briefly described
as follows:-
Issues related to cultural integration:
Merger or acquisition encompasses accumulation of diverse set of cultures belonging to
two or more organisations. There lies massive difference between the organisational culture,
values, beliefs, customs, traditions, ideologies, leadership, management, staff perspectives of the
2 companies. In case merger or acquisition is executed in a manner which does not provide
Leadership and Management Change in Merger and Acquisition Strategy_4

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