Mergers and Acquisitions: A Case Study of Deewal Bio Health

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Introduction
In the modern management environment form of the mergers and acquisitions have a special
place because they are highly utilised strategies for the business growth (Glaister & Ahammad,
2010). The cultural differentiation into mergers and acquisitions brings major issues for the
newly created business. The segment of business process management handling is high in this
situation. Recruitment is one of the significant areas in this respect and the issue is because of the
gathering of individuals from both the organisations and the work in culture. The latest venture
has begun in the organisation into New York City and therefore there is a need of shifting the
European culture to the United States. This will lead to an effect on the corporate development in
respect of behavioural Strategies and etiquettes of the newly formed organisation. The big
organisation Deewal bio health deals in medicines, and drugs related goods (HBR, 2019). The
projected earnings from the merged organisation were $8 billion however the problem with
respect to recruitment strategy and other strategies faced by the organisation is the area of this
report.
1. Conflicting values
There are certain problems with merger and acquisitions because in the mergers and acquisitions,
there is involvement of more than one organisation (Zhang, 2017). The procedure has to be
handled by these companies and the problems are:
 Issue in following law,
 hindrances of culture and communication,
 issues of political support as well as
 The problems linked with market penetration.
These are the key areas to be considered in this case. Management is that the number of
employees should be decreased from 120 to 65. The senior level workers are considered to be the
Assets of the organisation however the organisation has to consider this decrease of number of
workers because of the sustainable growth of the month business. The issue in the corporate
culture is that there is difference in the nature of individuals (Bedier, 2015). The people who
come from Europe face many problems at the New York because of the transformation in culture
impacting their individual performances. The timings of the place of work also vary. The

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workers and staff members have diverse work culture and they are used to the procedures of the
places from which they originally are. There is a difference in transacting and business dealings
in both the Nations. In this problem the key areas are dependability, commitment, dedication,
loyalty, consistency, reliability, honesty, efficiency and the mindset of business corporate. The
whole of the procedure of shifting from one place to another will be assisted by the core values
of the organisation by which the business holders can have right decisions at the right time. In
this case study the serious decision making as well as the assessment of the business results is
significant and this can lead to the changes in the economic condition of the nation. The two
leaders have different marketing perspectives, HR strategies as well as operational policies
therefore it is difficult to maintain those policies in such a situation.
2. Critical evaluation of the procedure used for working out the details of integration,
specially for structure and top management staffing
The sales and marketing head of the bio health that is Alison give information to the CEO
regarding the individuals leaving the organisation due to the redundancy at workplace once the
new offer is accepted from the other business. Kaspar does not feel any urgency to mitigate the
problems of recruitment and for formulation of HR policies but steel demanded the resolution of
the issues with immediate effect, even if those strategies were not appropriate for both Dewaal
and Biohealth. Steve is more concerned about the present situations of the business and he
wished to create the new structure of the organisation after the merger. He has always preferred
retaining the tenure as well as senior staff members of both the businesses because once the
merger is done then the senior workers are highly valuable. Following a merger, the management
of the business is generally focused on increasing the shareholders value and this can be
beneficial for the workers (Kerwin, 2010). It is not simple to retain the highlight in your
employees so the management attempts to bring up rewards into the policy for making the
business work in a quick manner. Speed is a significant factor for or mergers. Christian goes by
the feeling of urgency in the human resources tasks and urgency is required when the business is
into merger. Post merger integration is a complicated procedure of restructuring and combining
the potential of the organisations (Smeets, Ierulli & Gibbs, 2016). Post integration there is a
procedure of synergies which is generally therefore motivating workers to perform in a great
way. Steve wished to accelerate the post merger integration phase by operating in a quick way to

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deal with the people, activities from resources and supporting the information technology. The
US and Netherlands are two different nations and therefore these have different culture at the
place of work. The conflicts among the cultures of the organisations are clearly seen from the
perspective of the staff and leaders of these businesses have to understand the culture related
issues.
Caspar and Steve were not able to understand the real structure of the business after the mergers
and the stuffing procedure was also not understood by them. Stuffing procedure is highly chaotic
amongst these two leaders as Steve focused on making the recruitment procedure to be faster.
Bruce had been the chief of the human resources in bio health and Bryce was not a workaholic
individual. Kasper wished to make Christian Meyer as the head of the human resources
department post merger. Initially steam was into agreement that Bruce can be demoted to be the
director of the corporate training. Prior to recruitment and the corporate restructuring of the
business, these two leaders of the business have to create a profit and loss statement along with
an understanding of the strengths and weaknesses of the staff. These leaders had a discussion
regarding the various alternatives and they ignored the work procedure. In the merger procedure,
staffing is highly significant because employment of right set of individuals is needed along with
the development of the needed skills by training (Robert, 2014). The starting procedure Lays
stress on improvement and holds up the empowerment. Staffing is an important process for the
business after merger and it is required for hiring the good stuff. It is not always required for
recruiting the best staff or skill staff for the organisation but it is required for recruiting the
experienced staff members post-merger (Lageranna & Crawford, 2018). At the time of
recruitment, the management has to be aware of the emotional intelligence and the IQ of the
staff. Also Steve and Kaspar have to understand the business structure which would be followed
in future so that the correct hierarchy is created for sending the commands. Steve focus on giving
a structure to the business so that there can be improvement in the workflow. The procedure of
integration after the merger also considered the environment of the two leaders into closure of
operations in the plant of Indonesia for bio health. Being in to top management, it is important
that behavioural modelling is done so that others can follow. There has to be a formal outline
given to the business structure so that the procedure becomes simpler with addition of new
positions into the business. This can bring the flexible and ready application of staffing process.

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3. Recommendations for resolving the conflicting values
Since there was no feeling of urgency for Kaspar therefore it brought a major blow to the
organisation because the leader had to take huge time of Thinking over the circumstances. There
was an issue in decision making and this lead to loss in human resources. The choice of efficient
workers is key factor in this case however the sense of suitable decision making at the suitable
time is also significant for the business for having right worker at the right place. Also Steve was
looking to these things in a hurried way. Since there has been a merger situation therefore the
speed and time are significant for the growth of the organisation (Noe, Hollenbeck, Gerhart &
Wright, 2012). In this case, Steve has to consider the layers of vulnerability for accomplishment
of the process. It is not necessary that quick decision making would be always beneficial for the
business. At this point of time the engagement with the staff will decrease therefore it is
suggested that the decision making is done in a fair way as the identification, loyalty and
dedication are significant. The procedure of getting feedback is also suggested in this case. The
legal approach of identifying the roles and managing each job role in proper way is
recommended for the business development (Skouratova & Wald, 2010). It is suggested that
there is integration of the successful identification and selection of workers. It is important to
consider the procedure of benchmarking and managing to retain the effective staff members at
the right position. The final decision making of the organisation has to be based on the internal
and external factors along with the identification of the roles. There is a need for introducing fair
recruitment approach so that the ethical way of operating is implied (Kephart, 2015). The
training and Research processes are also important for enhancing the business growth. The
decision making should not be done in a haphazard manner rather there has to be a base of the
prior knowledge and expertise.
4. Process recommended that the two senior executives and their HR people follow to
work out the details of integration in regard to the top structure
The two senior executives and the human resources staff have to work out on the details of the
integration. The merger among these two organisations has led to lots of problems into the
organisation and the two major senior executives Kaspar and Steve Lindell are focusing on
resolving the issues. The workout procedure of integration of the merger of two organisations is
as given below:

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 Benefit of decision made today:
There are three phases when any two organisations merge. The first phase is of
acknowledgement and acceptance prior to the merger the second phases of transition phase
which comes immediately after the merger and finally there is a gestation stage (Chalkley &
Stewart, 2011). The two main leaders of these two given businesses should not make any
decisions in haphazard manner. The decisions which are done haphazardly would lead to
inadequate merger strategy as well as inadequacy of strategic goals. The decision criteria is also
not properly lead for measuring the level of potential targets business. The key leaders of these
two organisations have been taking decisions in a Silo which might exclude the major
perspectives from inside the organisations and can bring the feeling of distrust amongst them. So,
post the merger, these leaders have to take decisions on the basis of the facts and figures and
there should be no use of assumptions. There can be a creation of the governance code by these
two leaders and this word should be given a task of setting up and maintaining the policies and
strategies of the business. The board can also give approval to the merger of processes. The
business should have the resources for resolving the problems that come up due to merger. The
two organisations have their own financial strategies, human capital resources, intellectual
properties and signage, so it is important that these two leaders make decisions on the basis of
facts and figures and they do not perform in delayed manner.
 Bringing the outside assistance:
The two key leaders of these two organisations can and also look for external assistance for
resolving the issues of making the staff redundant. Search outside assistance can be taken from
the lawyers to understand the procedure of making the staff redundant. Secondly e there can be
assistance taken from the Talent assessment method so that the leaders are able to know who the
better performers for the organisation are. The leaders can give the gestation phase to the staff
members after the merger and later on the HR professionals can be asked to evaluate the staff
individually (Romanek & Krus, 2015).
 Changing the behaviour:
After the merger, while there is a transition phase, the leaders have to rectify the attitude of the
workers which is all about me and the staff members should be asked to you open up to every
Culture. By merging from the true varying cultures come together along with non similar
working habits and workplace rules into a single organisation. So amendment into the required

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behaviour of employees is highly recommended and the leaders must encourage the teamwork.
In the transition phase, the leaders have to ask the team members to take responsibilities in their
day to day tasks.
 Training on cultural integration:
Steve must ask the team members to get trained for improvement in cultural competence. The
cultural competence is the capacity of successfully interacting with the staff members of varying
culture (Galiya, Gulnar & Zaure, 2015). When two different cultures amalgamate, American and
European in this case then it would be highly significant for the staff to have some type of
training with regards to cultural assimilation.
 Fair recruitment:
Once the merger takes place, the two leaders have to follow the fair policy of recruiting so that
highly potential employees can be recruited. Since there are employees from both the businesses
therefore the fair recruitment strategy will assist in recruiting the right kind of stuff. There has to
be a seniority list drawn for retaining the senior and most experienced individuals with the
organisation
5. Usefulness of the management and organisational theories and practices from the
subject
The Netherlands and the USA are the two Nations from which the organisations come up. The
Hofstede's cultural dimensions give knowledge of cross cultural communication and also explain
the impacts of society’s culture on the business (Braid, 2016). There is a low score of the
Netherlands with respect to power distance because touch individuals want to be independent
with equal rights and superior accessibility along with the management facilities and
empowerment. Netherlands has a highest score in terms of individualism because it has a loosely
knitted social structure. There is a major advantage among the relationship of the employer and
employees in Netherlands. The USA workers would not have tolerance for unorthodox attitude at
the place of work because they think time to be money.
Conclusion
It is important to understand that the organisations face problems of integration and therefore it is
suggested that organisational leaders as well as HR professionals of the business have to

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recognise the synergy that is the reaction which comes up on combining two variant factors for
creation of better impact together then the two independent operations. Show the synergies of bio
health and Dewaal have to be combined for high profits. There can be two types of energy is
utilised by these two organisations which are financial Synergy and operating synergy
References
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