Merger between Dewaal and BioHealth: A Critical Analysis

Running head: CONTEMPORARY MANAGEMENT
Merger between Dewaal and BioHealth
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1CONTEMPORARY MANAGEMENT
Executive Summary:
The purpose of the assignment is to develop understanding and knowledge regarding the
concepts of management theories which are relevant in the current business environment.
While taking strategic decisions the company has to establish a number of analysis and data
points based on which policies or decisions are formulated. The mergers and acquisitions are
important tactics in the modern day business world in order to expand the business. A merger
is considered as an agreement which is used to unite two active organizations into one single
company. The purpose of any merger or acquisition is to grow the business. But along with
the gains of the tactics, the method also includes significant amount of conflicting values and
troubles in the process of smooth integration. The paper analyses one such merger between
the BioHealth and Dewaal. The focus of the report is on the impact of cultural differences,
inappropriate management of the organizational assets and the haphazard assessment of the
performances of the employees. The paper is able to be recommending significant helpful
steps in order to restructure the HR segment along with modifications in their operations.
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Table of Contents
Introduction:...............................................................................................................................3
Conflicting Values at Stake:.......................................................................................................3
Critical Analysis of the Process of Integration:.........................................................................4
Solution to the Organizational Conflict:....................................................................................7
Recommendations for the Smooth Integration Process:............................................................8
Usefulness of the Management Theories:................................................................................10
Conclusion:..............................................................................................................................10
References:...............................................................................................................................12
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3CONTEMPORARY MANAGEMENT
Introduction:
The organizational change is an important aspect of the organizational proceedings
where the organization generally restructures the different elements of it in order to get better.
The general organizational changes are visible in the form of business expansions which
generally focuses on increasing the profitability of the organization (Alvesson &
Sveningsson, 2015). The general form of the business expansion will include the mergers and
acquisitions. The merger is generally aimed to improve the current situation of the
participating organizations but it is also observed that the organizational conflicts between the
participating organizations may also demoralize the growth of the new organization
(Trautwein, 2013). The paper discusses the context and the conflicting issues related to a
merger and the solutions for the issues as well.
Conflicting Values at Stake:
The major conflicting issue for the formation of the new company is the incapability
in the decision making from the part of the CEO Steve Lindell and the chairman Kaspar van
de Velde. According to the study of Lubatkin (2013), one of the major important factor in the
merger and acquisitions is the synchronization among the two companies or the employees of
that concerned organizations. The first obstacle in the smooth conduction of the merger was
the trust issue of Steve on Kaspar as it was observed that Steve feared the excellence of
Kaspar in managing the media. Steve was afraid of the fact that Kaspar would pretend in such
a way to the media that it will reflect he has more importance in the decision making for the
new organization. One of the most important theory in the stabilization of the workplace in
cases of merger is the assurance of the continuation of the important and efficient employees
(Ahammad et al., 2016).
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