Business Report: Mergers & Acquisitions Case Study Analysis

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Business Report on the Case Study: Who
Goes, Who Stays?
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Executive Summary:
The complete assignment includes the business report on the case study of "Who Goes, Who
Stays?" According to which the "mergers" and "acquisitions" are the essential topics to be
considered effectively while identifying and evaluating the environment of contemporary
management. As because both this term are being used most frequently in order to implement the
effective strategies for the potential growth.
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Table of Contents
Executive Summary:........................................................................................................................3
Introduction:....................................................................................................................................3
Conflicting Values with Relevant Theories and Concepts of Management....................................4
Recommendations to Resolve the Conflicts....................................................................................5
Process to Explain the Integration in the Context of Structure and Top-level Management..........7
Recommendations for HR Senior Executives to Work out on the Integration with Regard to Top
Structure...........................................................................................................................................9
The effectiveness of Management and Organizational Theories and Practices............................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction:
The complete assignment is about the business report which includes all the necessary
information about the case study. All the big and small challenges are being discussed in the
report which is faced by the organization at regular intervals. The complete case is being
thoroughly and deeply analyzed. Various conflicts are been explained and also the effective
measures are found out to resolve the unnecessary conflicts. The complete effective process is
also being stated which includes the important steps to be implemented in the process of
"integration". The "Human Resource Structure" is also recommended by the "HR executives" to
work on the "Integration". And all the effective theories and concepts are being analyzed in the
context of the given case study.
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Conflicting Values with Relevant Theories and Concepts of Management
Both the pharmaceutical companies have been benefitted at the initial stages of their merger and
acquisition process. But after some time, the issues related to the management are being faced by
both of the companies, in the context of management theories and its practices. As the complete
case is dependent on the “dilemma of human resource” the organizations had to face the major
conflicts. "DeWaal Pharmaceuticals" and "BioHealth Labs" faced the critical situation of
paradoxical under which it has been discussed how many skilled executives will remain in the
industry as before and approximate how many of the members of that industry will be fired from
it. According to Steve, who was the CEO of “DeWaal Pharmaceuticals” those members or the
executives must continue to work with the company who are well-experienced and had handled
all the policies, procedures, strategies of the organization’s managing department. “Alison
Whitney” was the name being suggested by Steve as she was not only the sales director of
“BioHealth” but also the most effective & popular representative of the company’s sales
department. It has been discussed between the two organizations that the selection approach of
"Christian Myers" should be applied in the merged organization, although its approach is time-
consuming it is very effective (Pieterse, et.al, 2012). Those members in the organization must
stay in the company who are very emotional in their nature and attitude, who possess the high
level of IQ and who have the ability to handle the worse situations at different time intervals.
Further, Steve stated there must be the strong trust of their employees to be built upon. This
effective approach is beneficial for both the short and long period of time.
Selecting the top level managers for the single organization was not the only conflict among
them. The various decisions regarding "Indonesia, Bombay, the Plant in Bangalore and
Shanghai" were very difficult to be taken and implemented. Also, the prices of stock had fallen
by 20% in the organization of "BioHealth". Other conflicts were that some of the cultural
differences had occurred between both of the firms and somewhat Steve was not able to affirm
all his thoughts, behavior and attitude with that of Kasper, who was the chairman of "BioHealth
Labs". Internally coordinating among all the members of both the companies, developing &
managing the efficient relations between the shareholders, public and all the other stakeholders
of the industries (Leepsa and Mishra, 2016).
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Recommendations to Resolve the Conflicts
For resolving the various major issues, conflicts, and the problems because of the integration and
merging of the two companies, the effective approaches, efficient strategies, and the appropriate
plans must be set up and implemented by the managers and owners of the organization. Both the
organizations now being the one single company dream out the goals and organizations by
thinking about the formulation of new and future identity this step is the “Involvement and
Engagement”. The vision and mission both must be expanded with “mine to ours”, which is the
step of “Shared Vision”. The third step is to evaluate and analyze the current position of the
company according to its strategies, namely “Analysis”. Implementing and starting up the
process of creating the ownership, i.e. “Action”. The next step is building up and enhancing the
creation of momentum which is the “Implementation”. And then in the last step, the main focus
must be on the revaluation to re-evaluate all the activities and processes of the overall
organization. In order to resolve and eliminate the issue of “cultural differences”, the CEO, Steve
and the Chairman, Kasper must frame out, develop and implement the cultural strategy after
the deep understanding of about up to what extent the merger and acquisition both the companies
can affect the culture of all the different stakeholders (Seo and Hill, 2016).
Both companies must be having their own corporate culture through which the employees,
managers, customers, suppliers, shareholders and all the other stakeholders of the company will
interact with each other. After the acquisition, the different cultural profiles of the different
organizations must be combined effectively by the respect top-level managers so as to eliminate
and diminish the conflict of “cultural differences”. The employees of both sides, who are now
the part of the single organization, need to understand properly that they have to fulfill the
common goals of the organization in an effective manner. Also the proper training sessions
must be conducted for all the efficient employees working in the industry to create an
understanding level among them to effectively communicate with each other, minimize the
conflicts and issues and also implementing their positive and efficient behavior or the good
attitude towards not only the customers but also the other employees/colleagues of the
organization. The “Integration” is the most major problem in relation to the “corporate merger”
of two companies (Seo and Hill, 2016). Both the companies must include all the necessary
elements of their respective organizations in order to combine all their effective efforts and
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resources for creating a single company. The planning process of “Integration” is directly
linked to the cultural issues as because those people are included in the “planning process” who
identify, determine and evaluate the corporate culture after the organizational merger and
acquisition. Hence, all these effective strategies must be therefore applied by both, Steve and
Kasper so that the complete merged organization can achieve its defined goals and objectives
and ensure the maximum amount of profits to be attained while resolving the inefficient
conflicts.
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Process to Explain the Integration in the Context of Structure and Top-level
Management
Formulating and implementing the most effective plan of “Integrating Merger” in order to drive
out the efficient strategies and policies for retaining and sustaining the hardworking people in the
organization, for managing the arising “cultural differences” and ensuring the proper working of
the operations among the different stakeholders and enhancing or reaping the profitable benefits.
All these were the main issues and problems between both the industries, which are been solved
out very properly by Steve and Kasper (the CEO and the Chairman of respective companies).
Both the companies have decided among them that Steve, being the effective and experienced
decision maker, will decide that which employee will be retained in the organization and who
will get fired from the industry (Lunenburg, 2012). As because there were approximately 120
people working with them, but only 65 number of job vacancies is being available in the
organization. It has been agreed that the “CFO, COO and the HEAD of Research &
Development” must be from Steve’s organization. On the other hand, the operating director
from Europe and the manager of Global marketing must be from Kaspar’s industry (Chiang,
et.al. 2012). This was the integrating process for the top-level management of the merged
organization.
For the effective interaction between the efficient personnel or employees with the department of
management, the management theory of “Henri Fayol” is the simple and most effective model
which can be used by Steve and Kaspar to enhance the effective interaction in the complete
organization. The company must follow up the 14 principles of management, these are:
"planning, organizing, commanding, coordinating and controlling". The most sustained and
profitable plan must be defined by the top level managers which can be achieved by the overall
organization without any conflicts. They must ensure the proper and effective organizing of
human resources, raw materials, technological resources in order to eliminate their wastage and
enhancing the increased level of production. Steve and Kaspar must regularly conduct the
activities to encourage and motivate the working employees in the company so that they can
work more effectively and efficiently and increase the number of profits and sales (Chiang, et.al.
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2012). The effective coordination must be enhanced among the various different activities and
operations of the organization. The last stage of “Henri Fayol’s process” is to control the
unnecessary usage and wastage of limited available resources and implement the most effective
measures to control the ineffective things.
The top-level managers of the managing department must formulate the innovative ideas,
strategies, achievable and measurable plans to make the structure of the organization so much
effective so that it can adapt the different changes in accordance of the changing trends of the
current and future environment. With the help of implementing all the stages of “Henri Fayol’s
Theory”, the merged organization of Steve and Kaspar can enhance the effective specialization
in the complete industry. The managers at the top level have to define and set up the strategic
short and long term plans for the evaluation and achieving the defined goals of the company
(Nadrifar, et.al, 2013). Their role is to identify the cultural barriers among the employees
working in the organization, determine the appropriate functions be performed at each level of
activity and also analyze/interpret the effective strong strengths which can be used by the
organizational managers in eliminating its weaknesses. The communicative strategies must also
be developed for each and every department in the organization for enabling the strong
communication and sharing of the important information among all of them. This will also
decrease the number of conflicts and problems for all the employees in the industry (Georgiades
and Georgiades, 2014). The top-level managers besides following up the effective stages of
planning, organizing, commanding, coordinating and controlling must set up and conduct the
regular meetings in order to give time and look out the major concerns of employees and trying
to resolve them by either implementing the appropriate measures or taking the strong actions.
The role of top structural managers needs to perform effective roles in relation to the
process of Integration. Directing and providing guidance for enhancing the selection process of
skilled and experienced workers. The strategies must be framed by the top-level managers in the
context of the proper implementation of "Integration Process".
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Recommendations for HR Senior Executives to Work out on the Integration
with Regard to Top Structure
The HR professional and senior executives play a very crucial role to overcome all the possible
challenges, conflicts, and related problems must be solved out with combing of the most
effective leaders of the organization. The effective HR executives must recruit the right person
for the right work. The recruiting process must be efficiently conducted so that the skilled
workers must be filled up in the organization and their performances can be improved if not
worked properly. The senior executives should appoint some “fulltime analysts” and also the
managers at every department which will ensure the effective performance at each level of
department and measuring the working of each employee and then correcting the mistakes with
implementing the possible measures and taking corrective actions. The “Integration Process”
being created and formed by the “Integration Managers” helps in the creation of “Integration
Terms” which helps in merging all the resources both the organizations. Steve being CEO of the
company is required to hire the most experienced “Integrating Manager” as soon as possible so
that the deep understanding must be established for the achievable goals in the organization. The
skilled integrating manager can ensure the effectiveness in the department of sales, marketing,
customer service and the management (Torsten, et.al, 2017). Also, those effective employees
must be recruited by the top-level HR executives during the interview session that the
organization must not lose them to its competitive organizations. The “Integrating Manager”
has to make sure that the innovative approaches of executives at the top level in order to yield
the desired goals and objectives.
The CEO and the HR executives of top-level must support the ideas, working procedures and
the formulated plans by the Integrating Manager”. The organization grows in an increasing
manner after the acquisition. The main role of HR executives is to simplify the complex structure
and procedures of the merged organization. The number of job vacancies and the pay grade
must be reduced by the top-level managers so as to enhance the effective growth of the company.
The complete structure framed by the HR executives must be very flexible so that it can be
adopted by all the members of the organization according to the present and future changing
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trends. The feedback for the employees' performances and the effective suggestions for
improving them must be conducted on the regular basis for enhancing the efficient growth and
success. The best business practices of any of the company must be shared to all the members
working in the organization so that the effectiveness and efficiency can be improved of different
processes and business practices (Torsten, et.al, 2017). The last thing which must be considered
by the HR executives is to make sure that the system of “Software Integration” is to be dealt
properly and effectively as it is the most critical issue on which the deep attention is needed to be
paid. Therefore, all these points must be effectively considered by the top managers to make out
the effective system or the plan of "Integration" and hence earning the maximum amount of
profits with the smooth running of the business.
The effectiveness of Management and Organizational Theories and Practices
Strong and effective managerial skills, enhancing the technological knowledge and hiring the
management experts in the organization, all these abilities are very essential to be maintained for
achieving the organizational success. With the help of management theories and business
practices, the quality of delivering the services can be increased and also the organizational
productivity may be enhanced. Various multiple theories and strategies are being implemented
by the managers according to the structure, mission, and workplace of the organization (Ferdous,
2016). The "Chaos theory, Contingency theory, and the System theory" can be applied by
the top level managers to their organization. In order to motivate/encourage the employees and
also to increase their performance productivity, Steve and Kasper can apply and implement the
“X and Y Theory” in their organization. According to the "Contingency Theory," all the
decisions being taken by the managers are totally dependent upon the current prevailing
situations (Vancea, 2012). The approach of participation is being used by the managers as
ensuring the more employees to participate rather than using the “autocratic approach”. The
“System Theory” states about how the particular system influences the surroundings and
performance of different individuals. With the help of this theory, the events and the unique
patterns can be observed and examined by the managers.
According to the theory of “Chaos”, it has been identified and evaluated that no change can be
avoided by the organization and also some of the changes cannot be controlled by the
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management department. Steve and Kasper can increase the energy level of their company in
order to control and maintain the complexity level in the organization, because of which the
more structures are required to maintain the level of stability. Hence, the complete organization
needs to develop, grow, ensures success and change. The “X Theory and Y Theory” is
completely about the attitude and behavior of the employees. The “X Theory” states the
employees’ performance must be upgraded with the increasing incentives when they are not
ambitious in doing their work (Ferdous, 2016). Whereas, on the other hand, the “Y Theory” uses
the style of controlling for ensuring the leadership process and more number of employees are
being encouraged and motivated to participate in all activities of the organization, even in the
decision-making process. All these management theories are useful in their own manner and
must be applied by the different managers according to their organizational rules, policies and
effective structure.
Conclusion
The complete assignment is about the case study of "Who Goes, Who Stays?" All the
unnecessary conflicting values are being determined and possible measures or the theories of
management are being described to resolve those conflicts. All the roles and responsibilities of
HR executives are being described in the context of the top level of organizational structure. The
effective plan for "Integration Process" is being also described including the duties and roles of
Integrating Manager. The various theories and concepts of management are being evaluated so as
to determine the usefulness of the effective theories of management and organization.
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