Mergers and Acquisitions: Conflict and Resolution

This report highlights the mergers and acquisitions of two companies that have faced multiple issues, which lead to sever conflict. It identifies the reason behind such conflict and provides recommendations to resolve current issues.

The contemporary business environment for mergers
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Executive Summary
This report highlights the mergers and acquisitions of two companies that have faced multiple
issues, which lead to sever conflict. Hence, this report is aimed to identify the reason behind such
conflict and also highlighted the significant recommendation that organisations can select to
resolve current issues.
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Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Findings and analysis.......................................................................................................................3
Different values in the stake........................................................................................................3
Reasons for conflicts....................................................................................................................4
Processes Applied........................................................................................................................5
Recommendation for resolving conflicts.........................................................................................7
Process recommended for the two senior executives and their HR people.....................................8
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
This report highlights the mergers and acquisitions as strategies for organisations, which are
looking for continuous growth. Therefore, the case of the DeWaal pharmaceuticals and
BioHealth labs has been discussed in this report. Hence, the major aim of this report is to identify
multiple aspects that can affect the merger and acquisitions of organisations. Therefore, a
significant analysis of the conflicting values has been included in this report. Additionally, an
extensive critique of the existing processes has been discussed. Therefore, recommendations are
also given so that these organisations can resolve their existing issues.
Findings and analysis
Different values in the stake
The DeWaal pharmaceuticals and the BioHealth labs merged for expanding their businesses in
all over the world. Another aspect of the merge is the sharing of the profits of the two of the
pharmaceutical company. The main problem that faced by the two companies is the positions of
the managers. The CEO s of the two companies such as Steve lindell and Kaspar van de Velde
has implemented some managerial theories to resolve the conflict of the two companies (Waring
2016).
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Reasons for conflicts
The employees of the two different companies are very much insecure and confused about their
future in the company. The newly merged companies don't have enough positions and
employment. The employees are much more in numbers, and on the other hand, the places are
very less in numbers. The managers are not sure about their future; this has also obstructed the
workforce and culture in the new company. The pharmaceutical plants from different countries
such as Malaysia, Indonesia and Malaysia also have on the verge of closing due to the merge,
and that also needs substantial amounts of terminations. This has also generated fear in the minds
of the employees (Van der Voet 2014).
On the other hand, the promotions and demotions of the crucial posts rather than the designation
of the two giant pharmaceutical companies. One of the most influential managers of the DeWaal
pharmaceutical company namely Bruce Bollinger has to be demoted by the chairman of the new
company Kaspar as he has been given the responsibility of human resource management in the
modern pharmaceutical company. The position of the employees is the reason for the conflict in
the company of pharmaceutical goods that has made from the merge. The Kaspar’s people have
the upper hand on the placements in the newly merged company (Mazein et al.2018).
Bureaucratic management theory
The bureaucratic management theory has applied in the new company as the two CEOs, and
some first layer managers have the right to choose the people who are going to work and who are
not. The two CEOs have applied this theory that no external factor can affect their decisions of
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termination promotions. The hierarchy of the organization has the power to govern everything of
the new pharmaceutical company (Kang et al.2019).
Administrative management theory
In this theory, the authority or managers have a rational way of designing the whole system and
the employment sections are also overlooked. In this case, the CEOs have applied the theory to
create a new company (Thompson 2017).
Processes Applied
In the DeWaal BioHealth, CEO Steve was intended to do control everything with his own hands,
and for this reason, the work culture got affected. The problem and confusion of the staffing
were being tried to maintain and change by Steve single-handedly. Steve has thought that many
eligible employees have to be terminated and the job of the others are retained, but any moment
the previous workers can also replace them. This has also posed a threat to human resource
integration. The need for a concrete plan has come up to the scene. According to DePoy and
Gitlin, 2013The employment issues of the two companies have to be in harmony to be in a stable
position. Steve has to rely on the appraisal system to retain the eligible employees. There are
different aspects evaluated such as there are no rivals and competitions for the DeWaal
BioHealth pharmaceutical company so the work culture in the company is not very much strict
and the superior and robust performance are not needed at all, and the main problem has to be
focused clearly. The aspect is the objective of the merged company. The tendency of supporting
and favouring of the employees who are the close acquaintances of the managers has aroused in
the new combined company namely DeWaal BioHealth. For this year, the CEOs has given a
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clear view of the process of termination. To assure the fairness of the procedure they hired
external executives to retain and employ the most eligible and qualified person to work and stay
in the work culture of the DeWaal BioHealth. The foreign employees have helped the Steve and
Kaspar to evaluate the current situations, and without any biases in the process, this would have
also been a compact implementation of the planned strategies to resolve the major problem of the
merged company (Heaney et al. 2016). The power clashes, the office politics of the previous
company has always affected the company itself, but now with the help of the external
executives, the companies have accomplished the target of the newly merged company. If Steve
has done it a little bit earlier, the company should not have to face the loss of employees in the
early stage of the company merge. The employees can very much identify the causes and
requirements of the superiors, and the first layer managers of the newly merged company as the
company's managers are failed to provide it so. The work culture of the DeWaal BioHealth
Company is also identified by the evidence of the effects of the decisions due to preferences of
the superior workers. A team of external executives are deployed with the nucleus member of the
new company Christian Meyer, in this case, is appointed as a nucleus of the group, and the
primary purpose that the team would serve is to calculate the accurate appraisals for the retained
employees of the newly merged company. These appraisals can motivate and give a stable
impression of the company inside the minds of the employees (Mertens 2014).
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Recommendation for resolving conflicts
In the DeWaal BioHealth Company should plan strategically to have the possible growth in the
company. To survive a company should rely on the sustainable development of itself.
Sustainable development can be implemented due to the mixed collective contribution of the
workers (Parikh 2016). The workers and their qualities should be scrutinized and also the
suitable work environment needed for the workers for their development as well as the
development of a particular company. The worker's efficiency can determine the amount of the
organization’s development and growth. The workers have to be completely efficient and have to
work in their full potentiality. The workforce should be in peak to acquire sustainable
development in the DeWaal BioHealth pharmaceutical company. The pharmaceutical company
has the resources that can give the employees the chance to develop and work properly in a
particular organization. The DeWaal BioHealth has now the proper placement issues inside them
that have generated in the working environment after the merger of the DeWaal pharmaceutical
of Steve Lindwell and the BioHealth of Kaspar (Plotnik and de Waal 2014). This merger has
opened many ways in front of the two owners of the two big shots of the pharmaceutical;
industries. The company should have to think earlier about the consequences of the merge and
also have to think about the future of the employees and their relationship with the company. The
merger put a significant effect on them that the two companies have created many problems
regarding ownership issues and the divisions of work and the systems that are previously
controlled and managed by one sole individual owner. The ownership has divided into two
people, and the departments of the DeWaal BioHealth also divided into different sections that
have been controlled by the two different companies. The new company’s human resources and
global marketing have been managed and regulated by the owner of the BioHealth lab namely
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Kaspar, on the other hand, the Research and development and the COO section is operated by the
owner of the DeWaal pharmaceutical company namely Steve. This has also caused many issues
of conflict in terms of the promotions and demotions as well as the employee placement in the
new company. According to Zamora et al.2017the DeWaal BioHealth Company has aroused
many conflicts between the two owners of the previous companies regarding the employees'
preference in a particular post. The difference of the conception and views has initiated the battle
inside the stack holders of the company. The companies are very much alike, but the functions
and the work culture are different from each other. This has generated many problems like many
first layers of managers in the DeWaal pharmaceuticals such as Bruce Bollinger, and other
managers have removed from their position, and in that position, the managers such as Alison
from the BioHealth labs have worked in it. The conflicts can be resolved by the discussion of all
the managers of the DeWaal BioHealth Company, and the managers have to be chosen because
of their qualification not for someone's preferences (Pakosz 2015).
Process recommended for the two senior executives and their HR people
The human resource management of the DeWaal BioHealth Company has been by the 62-year-
old chairman Kaspar and the human resource manager of the new merger DeWaal BioHealth
Company was Allison who is one of the most successful and the influential managers of the
BioHealth labs (Weisberg et al. 2014). The owner of the DeWaal pharmaceutical company
namely Steve has sacked many employees with proper eligibility and qualifications. This has
also made the conflict more evident than before. The disputes can never be in the scene if the
owners, as well as the human resource managers, connect and discuss before implementing any
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plans in the DeWaal BioHealth organization. The harmonization of the two human resource
schemes is needed to be introduced in the merger of the two respected organization. The lack of
proper competitions in the market is very much affected the decisions that are made by the
human resource managers as well as the owners of the DeWaal BioHealth Company (Lipset,
2017). The integration has many obstacles in front of their path of development of the DeWaal
BioHealth. The DeWaal BioHealth has to be stable in terms of their termination of the
employees as well as the managers of the lower levels. The demotion of many managers also has
affected the workforce of the DeWaal BioHealth Company (Gibson 2016). These moves can put
a significant impact on the organization and the employee's attitude towards the owners and the
human resource managers. The owners and the stakeholders have to be more careful to the
employees, and the employees and the appraisals of the employee have to be applied
systematically. The relation between the two owners is robust as they have acquaintances in their
early days, but the conflict of interests can also be generated in the minds of the two owners. The
merger has developed the whole system in many ways that it required the employees with
superior quality in the pharmaceutical fields. The pharmaceutical company has to implement a
decisive approach regarding the new work system and also the technical aspects should have to
be overlooked in the new DeWaal BioHealth company. The technological aspects of the original
merger have to be installed, and the work efficiency and the profitability of the DeWaal
BioHealth Company have to be appropriately scrutinized (Moore 2014).
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Classical management theories
The managers have believed that the employees and the workers of the DeWaal BioHealth
pharmaceutical company have the need for economic support to have proper job satisfaction, but
the management have misinterpreted that, and for this reason the employees are very much upset
with the higher authorities of the DeWaal BioHealth pharmaceutical company (Melchers and
Beck 2018). For this reason, after the many employees out of job insecurity have left the
company and joined the other companies. The potential replacements of the company which are
also done by the owner of the DeWaal pharmaceuticals company namely Steve have also found
different jobs in the other companies so it can be said that the classical management theory has
faced failure in the DeWaal BioHealth pharmaceutical company (Landy and Conte 2016).
Behavioural management theory
The behavioural management theory also should be applied to the DeWaal BioHealth
pharmaceutical company. The managers should talk with the employees and assure them of
better future opportunities and better future amenities. The financial, as well as their
employment-related insecurities, should be averted by the managers. The managers have to be
the motivator as well as the moral guardian of the employees. Managers should understand the
employees. The managers have to provide incentives and rewards as well as medical claims and
insurances to the employees to gain their respect and trust. The manager's team led by Allison
also has to notice about the individual quality of the employees and the employees have to
interact correctly with the managers of the DeWaal BioHealth pharmaceutical company. The
company managers should have a flexible approach to the employees as the employees can feel
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secure in the work environment. The behavioural management theory can also become the theory
that helps the DeWaal BioHealth pharmaceutical company to overcome from the crisis moment
created after the merger (Sonnenstuhl and Trice 2018).
Conclusion
The DeWaal BioHealth has many flaws in their system, but there are many possibilities for
growth and improvement to some extent. The management has to play a significant part in the
development of the DeWaal BioHealth grow. The growth has to be sustainable because
sustainability can help the company to survive in this cruel and vicious market who is in a
constant change. This change can assure a company to flourish and be in the process of
continuous development. This continuous development is the primary factor in a successful
business. Many managerial theories are also implemented by the managers to assure the return
from the phase of the less workforce (Cascio 2015). These theories are evaluated below.
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