Leading and Managing Organisational Resources Acquisition Report

This report examines the acquisition of Company A by its holding company, focusing on the critical factors of leadership, operations, information systems, and finance. The report analyzes how the holding company's transformation of Company A's policies and procedures, including the removal of employees and a shift in leadership style, impacted the acquired company. It highlights the importance of considering the acquired company's existing strengths, such as its democratic and transformational leadership style, employee involvement in decision-making, and established operational practices. The report also explores the potential negative consequences of disregarding these elements, such as employee dissatisfaction and loss of institutional knowledge. Furthermore, it emphasizes the significance of financial planning and information technology integration in successful acquisitions, concluding with recommendations for companies undertaking acquisitions to ensure effective resource management and employee engagement.

Leading And Managing
Organisational Resources

Executive Summary:
The whole report is based on how acquisition will b taking place and what are major
factors that will be included while acquiring any existing company. As in the report Company A
was acquired by its holding company which was much larger organisation and concentrating in
increasing its shareholders value. At the time of acquisition holding company transformed the
whole policy and procedures of Company A with removing about 500 employees from company.
So in report writer will be covering that while acquiring a company what could other consider
like on the perspective of leadership, operations, information systems and finance. But this
acquisition is not as easy as will b including many factors which both holding and subsidiary
company need to consider at time of planning.
Company A was a 200 year old heavy engineering organisation which was having its
factories in India, China, USA and UK as well. Company was following democratic and
transformational type of leadership where all staff was having opportunity to give their ideas and
suggestions which would be helping management in making their decisions. If the company need
to improve performance of employees then it is very much important that they are involving
them in decision making process by taking their valuable suggestions. It was found that in the
company where employees are given opportunity for their participation will be surely beneficial
for them as whole.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
ANALYSIS......................................................................................................................................3
CONCLUSION................................................................................................................................6
RECOMMENDATION...................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Acquisition is the process of obtaining and getting an asset or whole company which is
already existing in industry so that new one could be having control of ownership. This is very
much lengthy process which would be including planning, organising, executing and controlling
of all resources whether human or financial one. Moreover, acquisition will certainly not include
transformation of whole process and policies holding company should try to take some important
aspect of its subsidiary company as well. In the current report we would be analysing what are
the main factors which need to be considered at the time of acquisition. As in the report
Company A was acquired by its holding company which was much larger organisation and
concentrating in increasing its shareholders value. At the time of acquisition holding company
transformed the whole policy and procedures of Company A with removing about 500
employees from company.
So in report writer will be covering that while acquiring a company what could other
consider like on the perspective of leadership, operations, information systems and finance.
Furthermore, report will also be including what could be theories and models which need to put
into practice so that they could improve performance via good form of leadership. Report will
also be covering recommendations that are suitable for any company who is planning to acquire
other company. As with the acquisition of Company A, its holding company changed the whole
management style of leadership to autocratic one. They were not giving much importance to
innovation and not involving ideas of staff in decision making process.
ANALYSIS
At the time when any of the organisation is planning and executing to acquire existing
company it is not always necessary that they are transforming whole of the procedures and
polices and putting new one as said by Goztepe, (2015). As seen at the time when Company A
was acquired by its holding company which is very large organisation and driven by increasing
value of their shareholders. Whereas, Company A was concentrating on how to implement and
brining about changes in products and service of company through procedures of innovation.
McCusker and Gunaydin, (2015) said that acquisition does not mean that Holding company will

be having actual power to get transformation in procedures of Company A. But they must be
giving chance to old policies and procedures so that organisation could involve in growth and
progress in market. Wu, Zhang and Liu, (2015) mentioned that Company A was a 200 year old
heavy engineering organisation which was having its factories in India, China, USA and UK as
well. Company was following democratic and transformational type of leadership where all staff
was having opportunity to give their ideas and suggestions which would be helping management
in making their decisions. While at the time when acquisition was made 10% of the employees
of organisation was made to leave their job whole leadership style was changed to autocratic one.
Schneider and Diehl, (2015) mentioned that acquisition is very long way and sensitive
process which must be done very carefully one wrong step of Holding company would be
putting them into problems. They must not be abolishing whole procedures and policy of
subsidiary company but if any important points which could be helping them should be
considered. Jennings and Kohen, (2017) included that factors and elements like that of
leadership, operations, information systems and finance of subsidiary is they are good then
holding company must consider them all.
According to Angwin and Meadows, (2015) in Company A, they were using
transformational type of leadership within which management used to include recommendations
and suggestions given to them by employees and then make decisions accordingly. This is quite
good form of leadership and always very much motivating for employees and organisation get
benefit in form of profits and sales. Employees are the best form of resource any company is
having with them so they must always consider them while making decisions for whole firm as
said by Ricci, Rokach and Shapira, (2015). At the time of acquisition holding company also fired
around 500 employees form company who could be of very much help as they were in industry
form a very long time. This act of terminating employees from work was not a good idea which
holding company took. For any organisation to get its success then they must including the best
form of leading people so that they could be involving all employees within decision making
process of company. At time when company is undertaking acquisition they must be considering
leadership style of the old company so that this could contribute to decision making within
company

Rothman, (2015) also included that decision of holding company to fire about 10% of
employees was not good as per whole organisation. All employees who were redundant were old
and they were having knowledge about machinery and procedures as well also having
inspirational senior leadership team with them. Jordão and Novas, (2017) claimed that
operations of Company A was also transformed by its holding company like the SPEAR team
which was created to work on projects of up to 6 months duration to develop and implement
innovative products and services. For this management was used to take ideas from employees
throughout the company which was further included within organisation. This will be very good
form of inviting involvement of employees and staff within the decision making process of
company which must be considered at time of acquisition as well. As in the above case holding
company does not included Company A, employees and nor the leadership style which they were
following.
Whereas Belletti, (2017) claimed that the form of information technology which
Company A was using might have been outdated and need to be updated. So if in this case if
holding company is not utilizing this system of information technology or communication then
this will be better. This must be considered that when company is acquiring any other company
so system of transmitting information and communication must be proper and latest one Kim and
Song, (2017) included. As Company A was 200 year old company but before acquisition it had
gone through process of whole transformation and complete overhaul of operations. So at time
when it got acquired there was no certain need to do much more changes as was done by
holding company. Some procedures and policies of Company A would have been implemented
as they were been transformed recently only. While the process of communication which
Company A was using could be changed so that there is better scope of very effective system of
information technology.
Yuan, Elhoseny and Riad, (2017) explained that at time when major acquisition will be
taking place holding company must be taking factor like of finance into their consideration.
Financial need and then its source will be very much important as because of this only holding
company will be having enough amount so that they could purchase Company A. It included that
as Company A was a very big engineering company so for purchasing such a large company

other always need huge sum of amount with them. Finance will be major factor which
organisation should be considering at time when they are purchasing any other company as
without having money they would not be able to buy.
Shan, Ann and Wu, (2017) said that acquisition is procedures which ceases the identity of
acquired company in market as a corporate body by acquiring all assets of subsidiary company
by the holding one. But this acquisition is not as easy as will b including many factors which
both holding and subsidiary company need to consider at time of planning. Liao, Garg and Gao,
(2018) said that outlining what will be the changes after acquisition, how could management be
able to meet up different challenges should be important. Market conditions and competition
should also be included while acquiring company as in industry where company is operating.
Whether conditions in market are in favour of potential acquisition of organisation. Holding
company should be considering theory or practice from perspective of leadership, operations,
information systems and finances so that decisions could be taken.
As per Luft and Amiruzzaman, (2018) holding company should be including all the
employees who are having good sense of knowledge about system of organisation must be
always there. As they will then be giving suggestions and ideas through which transformation
will become easy and not too complex. Cost of company at terms of training and developing
employees will be decreased which will assist them in further expansion. Leadership is the best
way out which will be helping, holding company in their growing and developing of individual
and new enterprise as well.
Saini, Arif and Kulonda, (2018) argued that every time it is not required by acquiring
company that they are involving the employees of subsidiary company. As in new organisation
there is always need of innovative and good qualified employees. Holding company would get
them at time when they are acquiring the existing company which is already working in market.
Fernandes and Pinto, (2018) included that making employee potential and getting them all
involved will be quite good decision.
If the company need to improve performance of employees then it is very much
important that they are involving them in decision making process by taking their valuable

suggestions. Enguita and Cancelas, (2018) found that in the company where employees are given
opportunity for their participation will be surely beneficial for them as whole. Workers are the
one who are wholly responsible for the development of company so their involvement in
planning is remarkable by Silveira, Júnior and Sbragia, (2018). If company is been able to
include their employees then this will also be improving performance of those employees as then
they will be motivated to work. Asking employees about their problems and then solving them
should be made into regular practice of management.
Akmam Syed Zakaria and Brewer, (2018) mentioned that for this management at holding
company must be using High Performance Work System where employee have greater
involvement and responsibilities within organisation. This is the best model and practice which
will be enabling to improve performance of employees through leadership, operations
management to inform decision making. Belletti, (2017) also proved that if any company want to
make acquisition so they must be implementing this system where there is very clear and
transparent relationship between employees and management. All the employees of Company A
should be considered at time when holding company is purchasing it. With this not only
performance of employees is been increased but this High Performance Work System will also
be improving profits of company.
Key elements in managing mergers:
Strategic Fit- this is that situation which will be defined to as the best fit or perfect specified
project or plan which holding company would be forming at time of acquisition of Company A.
It could also include all those resources which company must be having so that all its capabilities
would match with external environment so that acquisition would have been taken place. That
activity or planning which is matching with strategies of holding company is defined to as
strategic fit which is very much important so that acquisition could take place easily and with no
problems.
Organisational Fit- at the time when merger and acquisition is taking place it becomes difficult
for both companies to adjust within culture of each other. It is important that company is making
plan for major and easily adoptable organisation cultural plans which are fitting and also perfect

for the company (Goztepe, 2015). The acquisition process should be started easily but before
they must be deciding over with all employees and staff of both companies. There are various
impact of organisational difference among holding and Company A which need to be found out
and then solved so that it becomes quite easy.
Integration- it is also important that holding company is integrating all its employees so that
they could be prepared with present mind set and adopt the plan of acquisition not only of that
company but of its culture as well. Most importantly all these changes would be effecting the
employees to greater extent so their planning and execution would be essential.
Co-evolution- both the company after their acquisition would be emerging to as one which
means that they should be having same shared vision and new identity (Kim and Song, 2017). So
this acquisition should be important and win-win situation for both companies so the planning
must also according to both of them.
CONCLUSION
As the whole literature review was based on aim which is to demonstrate . It was
analysed that is initiating process of acquisition should be very ahead in planning and executing
of whole process. They should be considering some important causes which will hinder growth
in industry after the process has been completed. In the report above it was mentioned that a
holding company has successfully acquired Company A which is heavy engineering company
operating since 200 years. After its acquisition the holding company took some major steps in
order to bring about reforms in this newly form enterprise. Before September 2017 when the
acquisition took place Company A had made some major changes in its operations like they have
transformed new and inspirational senior leadership team, all process and operation got modified
and focus was on staff development. Other changes include creation of SPEAR team which was
implementing innovation of products and service and management suggested that all ideas of
employees must be included in decision making procedures.
From the above report it was concluded that HPWP should be introduced within all
organisation which will be helping them in improvement of performance of employees working

in organisation. When company is planning acquisition it is not essential that holding company is
wholly transforming rules and policy they could also consider the old one. As seen in this above
case where Company A had changed its major operation just before it got acquired so for this
holding company must have considered some changes as it was only.
RECOMMENDATION
 Firstly for holding company it was importance that they are involving all of their
employees so that new ideas and suggestions could be generated from there. As
employees are the best sources of telling what are prevailing problems that they are
facing and what could b changed.
 Company should also be engaging their management and leaders in motivation of
employees which will be boosting up their performance in organisation and making
profits out of them. The leadership style which was used by Company A, i.e.,
transformational one should be implemented with help of this management will be able to
make changes.
 Thirdly, change in culture which was taken place should not be taken place as this will
only be demotivating existing employees with the fear to adjust in new environment. So
holding company must be considering some policy of Company A so that it could be
getting benefits from that.
 Fourthly, information system which Company A was using could be changed and new
communication technology that is both fast and easy to access must be implemented
within organisation.
Recommendation Leadership style Change in culture Information system
Cost Nil Nil £1 million
Priority level Very High Moderate High
Time scale 5 months 6 months 3 months
Resources Inspirational staff Inspirational staff Finance

Who is responsible Management Management and
employees
Management

REFERENCES
Books and Journals:
Akmam Syed Zakaria, S., and Brewer, G., 2018. Contextual, structural and behavioural factors
influencing the adoption of industrialised building systems: a review. Architectural
Engineering and Design Management. 14(1-2). pp.3-26.
Angwin, D.N. and Meadows, M., 2015. New integration strategies for post-acquisition
management. Long Range Planning. 48(4). pp.235-251.
Belletti, A., 2017. Kinds of evidence for linguistic theory. Selected papers on theoretical and
applied linguistics. 17(2). pp.285-303.
Enguita, J.M., and Cancelas, J.A., 2018. Multi-kernel deconvolution for contrast improvement
in a full field imaging system with engineered PSFs using conical diffraction. Optics
and Lasers in Engineering. 100. pp.161-169.
Fernandes, P.A.F. and Pinto, C.A.G.P., 2018. Equipment Lifecycle Management Framework.
In Modeling Innovation Sustainability and Technologies (pp. 249-258). Springer,
Cham.
Goztepe, K., 2015. New directions in military and security studies: Artificial intelligence and
military decision making process. International Journal of Information Security
Science. 4(2). pp.69-80.
Jennings, R.Y. and Kohen, M., 2017. The acquisition of territory in international Law with a
New Introduction by Marcelo G. Kohen. Oxford University Press.
Jordão, R.V.D. and Novas, J.C., 2017. Knowledge management and intellectual capital in
networks of small-and medium-sized enterprises. Journal of Intellectual Capital. 18(3).
pp.667-692.
Kim, H. and Song, J., 2017. Filling institutional voids in emerging economies: The impact of
capital market development and business groups on M&A deal abandonment. Journal
of International Business Studies, 48(3), pp.308-323.