Business Development: A Case Study of the Mainland-Safari Tours Merger

Desklib provides past papers and solved assignments. This report analyzes a successful business merger.

ITC 563 Assessment 4 Critique in Systems & Technology
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Introduction
This report shows the merging between two couch Tours Company in order to expand
their business more in the market. In this report, various benefits of merging are
explained and the various problem which may arise in the process of merging is also
discussed in this report. There are several new services which can be provided by the
new company in order to attract new customers. Differences between the issues of
Information System and Information technology and the several effects of these issues
on the customer's choice and the loyalty of customers towards the brand is discussed in
this report. Several suggestions are discussed in this report in order to attract the new
customers and to gran the new opportunities which will arise after the merging of both
the companies. In order to enhance the growth of the business, both the company need
to develop the new system integration and the effects of this new system is discussed in
this report.
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Contents
Introduction.................................................................................................................... 2
Executive Summary.......................................................................................................3
Body of Report............................................................................................................... 4
Conclusion......................................................................................................................9
References....................................................................................................................10
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Executive Summary
This study is based on the merging of two companies which are Mainland Express and
Outback Safari Tours. Both are the coach tours company situated in Australia. Merging
is the process of combining two companies into another in order to expand their
business more. It is the most common strategy to expand the business more in the
global market. This makes the company more valuable to its shareholders. Outback
Safari is a popular coach company in Australia with approx. more than 20 offices all
over in Australia. It is known to be a popular company which provides great services to
its passengers. On the other hand, Mainland Express is not that popular in the country
with having only 10 offices around the nation. The main strength of the company is that
it charges quite low fares from its customers and provides their services always on time.
Both the company have their different working style and Acquisition of the business of
both the company will definitely have a huge impact on the growth of their business.
The acquisition will be beneficial for the growth of both the business and the various
problems which may arise in the Acquisition process is discussed in this project. There
are various differences between Information Technology and Information System which
has been explained in this project. Various recommendations have been made in this
project in order to attract more customers and to fulfill the need of the customers and to
acquire various opportunities which will come after the acquisition between both the
businesses.
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Case Outline
Outback Safari Tours and Mainland Express are the couch companies with different
working style is merging together in order to expand the growth of the business more in
the International market. Merging between both the companies will be beneficial
because both the companies have a different working style and both use different
techniques in their business to generate profits. Outback Safari mainly depends on the
tours operators and the travel agents for the customers while on the other hand,
Mainland provides online booking system to its customers in order to generate profits
(La Rosa, et. al., 2013). Both companies provide various services to customers at
different rates. Merging between both the companies not only allow them to adopt each
other working style but they can implement new techniques in order to expand the
business more.
Decision 1 & 2
After the merging process, the new name of the company is Mainland- Safari Tours.
Company has retained all its staff which is beneficial for the company as these existing
staff members know their job very well in the company. Company is decided to adopt
the advance system which is the implementation of an online booking system and to
provide services at the lower rates to the customers. This will help the company to
attract new customers and to generate more profits. Company is decided to provide
some extra services to the passengers in order to generate more profits. These services
are chargeable and the passengers can pay extra money in order to take the benefits of
these services (Shiwakoti, et. al., 2015). These services include comfortable seating,
use of WIFI, drinks, foods, and carrying of luggage. These are the several services
company is decided to offer the customers so that the customers will enjoy their trip
more and they do not have to face any other issue.
After the process of merging, there are higher possibilities of conflict in the business due
to the difference in the culture of both the workers and also because of different working
style. These conflicts not only affects the performance of the employees but also affects
the growth of the company. In order to overcome these conflicts, leaders of both
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companies can communicate with their employees and make them introduce to each
other. Due to which employees of both companies can get to know each other and
instead of conflict, they can learn from each other. Every employee has their own skills
and as a result, an employee can learn from each other's skills in order to enhance the
growth of the business. Leaders of both the company can set the aim and objective of
the company so that every employee will know their objective and they can work hard in
order to achieve the goals of the company. These will not only enhance the
performance of the employees but also it will develop the company more at a rapid
pace.
Decision 3
There will be the development of new system integration between both the companies.
Integrating a new system will be beneficial for the company if they use it in a well-
prepared manner (Baqasah, et. al., 2014). There are various suggestions by which the
company can implement the new integration system properly without facing any issue.
These suggestions are mention below:
Determine every stakeholder of the company and let them know about the changes. Let
everyone know behind the purpose between the merging and what the new objective of
the company is.
Implement the new technology carefully, after the merging process it is essential for the
company to implement only those technologies which would be beneficial for the
company. As both, the leaders of the company have a different perception and both will
possess different ideas. It is important for the company to implement the correct
process in order to expand the business more.
Always come up with the proper strategy in order to fulfill the needs of the customers. A
new system always need a proper strategy in order to run them beneficially, It is
important for the organization to implement a proper strategy in order to satisfy the
customers’ needs and to attract new customers.
Decision 4
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After the merging process, it is necessary for the company to decide the new policies,
norms, rules, and agreements. These policies should be followed by every employee
and the company has to take care of the fact that every worker is working according to
the policy of the company. There are many government rules which company have to
follow after the merging process in order to avoid any kind of legal issue in the future
(Ziegler, et. al., 2013). As this can affect the growth of the organization. The company
needs to tell everyone about the new norms and rules so that every employee can work
according to the new policy of the company. This is the most important thing in the
company after the process of merging two businesses as it will not only assess the
employees but also secure the company from any kind of legal issues.
There will be many issues which will arise which is related to Information technology
and Information system, the differences both of them are mention below:
An information system is more focus on how raw data can be managed in order to solve
the problems of the business and create new opportunities for the business while the
Information technology management is used to minimize the various risk of the
business in order to generate more profits.
Information system management can be used in the business in order to examine the
new information so that the company can gain a competitive edge while Information
Technology can make use of the hardware and software in order to generate new
information (Bainbridge, et. al., 2013).
An Information system strategy can be developed by the organization in order to
determine the business objectives and to support the functions of the business while the
Information technology management can be used in order to identify the necessity of
the company by creating a framework.
An Information system can tell the company what is needed in order to accomplish the
goals of the company while the Information Technology tells the company about how
the things can be delivered in order to meet the requirements of achieving the objective
of the company (Frazer & Stiehler, 2014).
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Mainland- safari Tours can make use of both the Information System and Information
Technology in order to determine the choices of the customers and this will also assess
them to provide the desired services to the customers so that they will remain
connected with the brand. With the help Information Technology and Information
System management, the company will be able to achieve its objectives. Both the
techniques will be beneficial for the growth of the business and organization can be able
to expand their business globally (Clarke, 2014).
As per the given scenario of the project, Outback Safari Tours and Mainland Express
are merging their businesses to form Mainland Safari Tours which will retain the
qualities of both the businesses such as staff, coaches, tours, and destinations.
Whenever a merger takes place it brings the Synergy effect in an organization. The
Synergy profit is the one which is over and above the combined profit of two firms. In
the understanding of financial management, it is explained as the situation where 2 + 2
becomes more than 4. The business of mainland Safari tour will also bring more amount
of profits in the organization by utilizing the strengths of both the previous
organizations.
The business can expand its operations in new dimensions to grab the opportunities
available in the market industry as it will now have more funds in their merged entity
(Jørgensen, 2016). The company will be able to attract new customers and other
business opportunities which may arise because of this merger.
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Recommendations for Attracting New Customers
Some of the suggestions or recommendations in this regard are discussed below:
Waiting lounge services: As the company is operating in providing the tour services
and has a variety of service classes and coaches. It can opt for providing waiting lounge
services where the company's customers can avail the hospitality services of the
company. Due to which the passengers do not have to face any problem while waiting
as they can spend their time waiting for lounge and can do lots of things over there.
Customers can enjoy this service at a very low cost. Low cost of the service will attract
more customers and this strategy will be beneficial for the company in order to generate
more benefits. This will expand the business of the company and will help their business
to stand out in the market competition.
Car parking services: Company can also provide car parking services for its
customers as the customers have to park their cars at other places which causes
inconvenience to them. The company can provide additional facilities for car parking to
attract new customers in their newly merged service couch company. As the
passengers are already having a variety of paid services on the basis of the need of the
passenger, it will become an addition to those facilities and will help in increasing the
number of customers and profits of the company.
Transfers from home/office: The Company is currently operating in providing
transportation services across the cities. By starting transportations services from office
or home that is within the city it will definitely bring more passengers to the business.
Customers can book their transport from home to the office at a low cost (Barros &
Domínguez, 2013). Many of the passengers in the city can make use of this service as it
will be beneficial for the customers to get the transportation service at a very cheaper
rate. This is a market opportunity which should be grabbed by the company in order to
make more earnings from the services.
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Conclusion
In this study, the importance of merging between the two companies has been
concluded. Merging is a great strategy in order to expand the business more in the
international market. Merging process consist of various things and there are lots of
conflicts which can arise in the business after the merging process. These conflicts
have been concluded in this report and the several suggestions have also been
illustrated in this report in order to overcome those conflicts. Importance of Information
System and Information Technology in order to accomplish the objectives of the
company have also been concluded in this report. There are various recommendations
which have been made in this report in order to attract new customers and to capitalize
on the new business opportunities.
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References
Bainbridge, W. S. (Ed.). (2013). Converging technologies for improving human
performance: Nanotechnology, biotechnology, information technology and
cognitive science. Springer Science & Business Media.
Baqasah, A., Pardede, E., & Rahayu, W. (2014, December). A new approach for
meaningful XML schema merging. In Proceedings of the 16th International
Conference on Information Integration and Web-based Applications &
Services (pp. 430-439). ACM.
Barros, R. H., & Domínguez, I. L. (2013). Integration strategies for the success of
mergers and acquisitions in financial services companies. Journal of Business
Economics and Management, 14(5), 979-992.
Clarke, C. (2014). Merging and dissolving special districts. Yale J. on Reg., 31, 493.
Frazer, M., & Stiehler, B. E. (2014, January). Omnichannel retailing: The merging of the
online and off-line environment. In Global Conference on Business & Finance
Proceedings (Vol. 9, No. 1, p. 655). Institute for Business & Finance Research.
Jørgensen, M. (2016). A survey on the characteristics of projects with success in
delivering client benefits. Information and Software Technology, 78, 83-94.
La Rosa, M., Dumas, M., Uba, R., & Dijkman, R. (2013). Business process model
merging: An approach to business process consolidation. ACM Transactions on
Software Engineering and Methodology (TOSEM), 22(2), 11.
Shiwakoti, N., Gong, Y., Shi, X., & Ye, Z. (2015). Examining influence of merging
architectural features on pedestrian crowd movement. Safety Science, 75, 15-22.
Ziegler, C., Beuter, H. G., & Aakolk, M. (2013). U.S. Patent No. 8,433,664. Washington,
DC: U.S. Patent and Trademark Office.
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