Contemporary Management Report: DeWaal & BioHealth Merger

This report examines the challenges of mergers and acquisitions, using a case study of DeWaal Pharmaceuticals and BioHealth Labs. It explores conflicting values stemming from cultural differences, analyzes the critical processes of change related to people and culture, and recommends strategies for resolving conflicts. The report applies management and organizational theories, including the Hofstede model, to understand cultural differences and change management. It also addresses HR issues, recommending an integrated approach to merge the two companies. The analysis covers aspects like organizational culture, leadership, and the importance of managing staff behaviors during a merger. The report concludes with recommendations for fostering a successful merger, emphasizing the need for a strong organizational culture and effective change management strategies.

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Executive summary
Organization merger and acquisition has been identified as one of the key trends that is observed
in different parts of the world in which the bigger organizations are acquiring the smaller
organizations or similar organizations with the purpose of merging. However, the challenge
emerges in the distribution, post the merger process especially at the top level. This has been
illustrated through the conflict that emerged in the context of Deaal Pharmaceuticals and
BioHealth Labs that have encountered challenges in this regard.

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Table of Contents
Introduction......................................................................................................................................3
Conflicting values............................................................................................................................3
Critical process of change (People and culture)..............................................................................5
Recommendation of the conflicting values.....................................................................................8
Process of recommendation.............................................................................................................9
Evaluation of the usefulness of the management and organizational theories and practices........10
Summary and conclusion...............................................................................................................11
References......................................................................................................................................13

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Case study: Who goes, Who stays? Harvard Business Review
Introduction
Merger and acquisition has been identified as the important trend in the world of
business. It has been found that majority of the large business have the tendency for acquiring
the smaller business that are productive and would have a promising future. There have been
adequate illustrations of mergers and acquisitions in the recent time in different social media
platforms like Facebook acquiring Whatsapp, Google , Instagram or in Googles’s endeavour of
acquiring Android. The notion behind merger and acquisition is to take over the promising
business entity, maximize the value and entrench the power and position of the company. This
report aims to discuss about the two prominent pharmaceutical companies BioHealth Abs based
out of United States and DeWaal Pharmaceuticals located in Netherlands and elaborate on the
different aspects of merger and acquisition. The report aim to examine the case study and explain
about the conflicting values at stake, critical process of the change through the transformation in
the organizational culture and leadership style, recommendation regarding the conflicting values,
process of recommendation and the evaluation of the management theories and processes.
Conflicting values
It is found that the merger of two companies lead to the merger of top positions too. Prior
to the merger there was one HR hired for the company and the main issue arose due to HR
managers in the company. Once the merger is in place, there is one HR manager for the
company. Once this process is sorted there was found that there is one HR manager for the
company. This has embroiled the conflict as the person who has left the post would offer
resilience before leaving the company . This is observant in case of all the posts and therefore it

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is inevitable that there will be conflict. The goal would be to reduce the conflict and make the
workplace conducive or compatible with the desires and orientation of the worker. The key
would be to use transformational organizational culture. Each organization bags its own
organizational culture. In this, it can be seen that the people in the organization are, feeling
demoralized and they would leave the company before the outset of the merger.
Organizational culture of an organization plays an instrumental role in keeping the
employees in the organization. A transformational organizational culture is one in which the
redundant measures in the organization are changed to usher in reforms in the business. The
organizational culture is contingent on the region of the location of the organization as well as
the cultural location of the people who are part of the organization. In the context of this case
study, this two organizations are North America and one from Europe (the Netherlands) (Light,
2001). This demonstrates that there is considerable difference n the cultural essence of two
organizations. The conflicting values of the organizations are present in the cultural differences.
Ana analysis of the case study has led to the usage and application of the appropriate theories
and models relevant to the organizational culture. This would enable in better understanding of
the nature and disposition of conflict in this specific case study. The Hoefstede cultural theory
and the Hoefstede model can be used to understand the cultural difference of the two
organizations and the conflict that have emerged from them. Drawing from the Hofstede theory
it can be seen that these two countries share similarities in terms of power, indulgence and
distance. These countries are close to individualism too and they have differences in Long Term
Orientation and Masculinity It has been found that the supervisors make progress and accord the
individuals solidarity, quality and balance.

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Image- This depicts the Hoefstede cultural model of USA and Netherlands
Critical process of change (People and culture)
Integration is an important aspect of merger and acquisition that needs to be transformed
during the course of the organizational change. This needs to be regulated and managed in a
proper manner with the aim of maintaining the circumstances under the control and
implementation of the top management staffing in a proper manner using the appropriate Lewin
cultural theory for the better understanding of the entire situation. In the first stage, the progress
includes establishing the association to recognize that change is important that includes
distinguishing between the existing circumstances and developing another method for the
working of that circumstance. The central process is to decide the way in which idea can be
forwarded in constructing the way in which the process would not be able to accomplish the
results. The rationale behind this demonstration is to weave a solution that would benefit

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everybody and would cope with the situation. There is an imperative to usher in the adequate
amendments to the organization in dealing with the process that should commence with the head
structure--- there needs to be a challenge the qualities, practices, convictions and demeanors that
characterize and becomes a pertinent part of the structure of the organization (Burke, 2017). This
is important in ushering in the requisite changes in the infrastructure in which the work will be
conducted. This is because the two organizations are accustomed in working towards the settings
and the work culture and therefore, there needs to be a balance between the two. There is an
unfreeze situation when most of the people are caught in the feeling of despair and vulnerability.
In this situation people start responding and accepting the changes and feel it can be done away
with the problems that are emerging and the ways they have to adapt to the problem. People
begin to accept the problem and recognize the ways one need to act in assisting the new heading.
This advancement related to the process underscores on being rigid to the new situation. There
emerges adaptability in different stages for the people as they would take time to reflect on their
position in the company (Fahey & Glickman, 2012)Another important aspect is that of
perspective taking within the organization in which the new process are implemented into the
place. This is the change carve and it underscores on the process of commencing from the static
position hating the company that would take part in the state.
There are exchange cars that present the beginning point at the low position of the change
curve that heralds the position of people in which they do not want the change and then proceed
to the place where people can act proactively and take part in the change. People begin to think
that in what ways the change will be implemented in the organization and in the improvement of
the lives of the people especially their work life. If change is perceived as having good outcome
then members of the organization would automatically take part in the change. When the

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situation is good, people are taking in the change management principles, and settling with the
situation again without the process of refreezing this is understood as the better methods of
working to be accomplished. In this case, the external signs of refreeze from which the
circumstance can be understood are enduring the affiliation plot and arrangement of the
obligations. The upper administration and the managers need to take care. This ensures that
actions are adopted in the rightful manner and are taken care in the right manner. This ensures
that the actions should be used in appropriately and they should be combined with the customary
industry.
Another issue that needs to be discussed here is the point of struggle among the most
troublesome HR issues that should be followed by the merger and is the demeanours of the staff
members and the employees of the organization. Staff members may be pushed, irated or
disillusioned owing to the effects if the merger on their occupation. Change should be a pertinent
explanation that is considered to be after stress for the large number of individuals and the
occupations that transform habitually in the organizations. Whatever may be the affiliations of
the specialist, it influences the charge in the merger frequently in all the situations and the course
of the pay and the focal points of the new association. These are considered for the specialists to
experience or receive the consistency in the pay and the points of interest and the issues that are
restricted. Many times a few representatives are requested to accept pay declines or encounter
advantage cuts grumbling and the low spirit that will come about (Kiitam, McLay & Pilli, 2016).

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Recommendation of the conflicting values
An association needs to maintain an impressive and inspiring organizational culture that
would make the employees feel valued. The characteristics of an organization should be to take
into account the feelings, practices and other elements that would determine the ways in which
people can accomplish their goals nada chive their target.
These are some of the segments:
 In an organization, everybody should be accountable in achieving the behavioral benchmarks
by everyone in the organization from the front-line specialists, line managers, and staff
members to the line specialists.
 Adhering to the essential characteristics and the judgment in the ways to battle as envisaged
by the framework of the association.
 There is the working model of the association in which the structure, instruments and the
organization, and the techniques for working that would create and sustain the arrangement
in the ways the workers will complete the task.
The recommendation would be integrate two companies in which the companies acquire
at the beginning and describe and define the social focus in the extensive terms. This would not
work in the never ending manner for the CEO and the CEO will have to deal with her or his
dedication and diligence till the point when the moment that they made sense of the goal. This is
compatible with the incorporation of the merger and the legitimization of the same.
Setting the merger arrangement in the general sense introduces and incorporates the
tough choices and decisions that need to be taken. The task of the acquirer is to adapt to the
framework of the association and make it a fusion of both the organization in a balanced manner.
Sometimes it can make use of the merger to bring in the culture of the acquirer’s. This blending

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of the culture into the specific affiliation would culminate to cultural heterogeneity. It will
deliberately pitch them the contributions to the success of the merger, for example, in the
organization of the business to drive the culture as it will be crucial for the organization.
Process of recommendation
It has been found that there is a considerable difference between the culture of the
acquirer and that of the company that has been acquired. Whatever may be the difficulty the idea
is to exactly point out the in what ways and how it will be critical as well as the qualifications.
Diagnostics is often perceived as and understood and can measure the qualification among the
people and the units, regions, limits and the people. They have the ability to empower the Human
Resource with the aim of making sense of the openings that needs to be closed (McKenzie,
2015). The association can make use of arrange of instruments that would empower them to
make sense of the openings that should definitely be closed
An association can make use of the instruments and that should include the following:
 There would be administration interviews for revealing the needs and authoritative style.
 Appropriate choice regarding the duty mapping that would exhibit the people and their
accountability for each of the key components and X-shafts.
 Sound records and video for the people in their occupations as this would enable alternate
examinations of the different people and their techniques of working.
 There should be proposal regarding the interview of the clients who are perceived as
unique customers from the perspective of each of their affiliation.
 Processing of the stream maps for exhibiting the ways in which capacity is done and
extremely novel in link with the relationship and other.

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 There should be representative examinations that would enable in procuring data
regarding the recognized practices, requirements and the perspectives.
 There should be warmth maps for exhibiting the groups that would be basic in
comprehending the understanding of the acquirement in regard and place of the existence
of the best social gaps.
These gadgets will be useful in facilitating profitable talks during the merger and acquisition.
In this case, one profitable yield for the specialists would be to consider for instance in what
ways the “word cloud” will be there. The administrator would expect the people to select three
descriptors that would delineate their specific association as well as the other one in low-effort
and successful way to deal with beginning the symptomatic strategy and to amass the
sponsorship around the more broad cultural effort. This would result in the way the gathered
through cloud programming and would consistently reveal the complexities that would give a
start to start a discussion.
Evaluation of the usefulness of the management and organizational theories and practices
The hypothesis in this situation concentrated on the human conduct and the connections
that are not much dynamic but rather are grounded in the real human experiences and
inspirations (Dalkir, 2013). They have hope in developing the potential for the commonly
advantageous connections in the context of the working environment. Workers and the managers
do not generally have compatible interest regarding the organizational feature of merger and
acquisitions. The administrators may be able to settle on the choices that can outrage the workers
whilst the representatives may place their specific advantages over the company. The
administration hypothesis is of the view that the ideas of the authority and the motivation may

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not render adequate weight to the tension (O’Sullivan, 2017). The employees in majority of the
cases usually leave their employments due to poor management in a situation that would increase
the cost and the expenses. This would bring down the capability of return that invested the
amount in the business. The entrepreneurs need to see the great administration that would keep
with the brain and the end goal with the aim of making a plan of action. This could enhance the
worker profitability that would dispense the excessiveness of the procedures. Supervision is
contingent on rehearsals and the supposition of the supervisors and the representatives or the
contextual analysis of the specific territory of the business. They usually work best for the casual
associations and the little ambiguity that exists regarding the management model that would reap
the fruit on the grounds that the reputation of the model rationalizes itself with the evidence
(Tovstiga & Farhad, 2017). The administration would rehearse and concentrate on the flow
between gatherings and legitimizes the director for greater flexibility in settling with the
decisions and enabling the representatives with the aim of working together as a unit when they
would cooperate in an undertaking. The entrepreneurs need to combine the administration, the
speculations and the practices in view of the plan of action. The start-up owner or the
industrialist will need to examine, ascertain and delve and execute the administration rehearses in
the context of the fact that he would expect the adaptability in support of the business mode.
With the development of the business, there may be the inclusion of the components of the
administration hypothesis in keeping with the end goal in formalizing the leadership and the
characteristics of the administration.
Summary and conclusion
In the context of merger and acquisition in the international trading it has caused the
scenario of the bigger businesses to come up. It has been found that merger is fraught with