This case study examines the challenges faced during the merger of DeWaal Pharmaceutical and BioHealth, focusing on leadership and integration issues. The merger aimed to leverage DeWaal's European presence and BioHealth's strength in the American market. Key problems included managing employment crises, cultural differences, and a lack of clear communication, leading to employee attrition and uncertainty. Steve's haphazard decision-making and failure to reassure critical employees exacerbated the issues. The study highlights the need for a structured integration plan, objective executive appraisals, and transparent communication to ensure a successful merger. Recommendations include outsourcing appraisal services for unbiased assessments, developing clear selection criteria, and implementing pay-to-stay schemes to retain key talent. Ultimately, the success of the merger hinges on explicit business objectives, fair evaluation processes, and proactive leadership from both Steve and Kaspar.
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