Merger and Unit Integration Issues, business and finance homework help

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Business Finance

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Module 3 Discussions

Week 1: Merger and Unit Integration Issues

Actions for Week 1: Merger and Unit Integration Issues

As a leader/manager, one circumstance you may encounter is the necessity to integrate or merge two organizational units. This can be a stressful period which, if not properly managed, can cause a good deal of tension and/or conflict, often leading to decreased organizational performance.

Consider that senior management has dictated that your unit will merge with another manager’s unit over the next three months. You will be the leader of the newly merged group. The previous manager will remain on your staff. Senior management has asked you to submit a merger plan. (If you have previously been involved in an actual unit merger, please share the organizational dynamics you experienced as well as any lessons learned.)

(Bring in and cite at least one source of information from your background readings for each of your weekly initial posts.)

Week 1 Discussion Question:

What are the key issues/challenges/opportunities you face, both short and long term?

Remember, after you submit your answer each week to the Discussion Question itself, you also need to respond to at least two of your classmates’ posts.

(In total for this module’s two-part Discussion Forum you should have contributed at least two Discussion Question posts and four response posts to your classmates.)

You must participate in BOTH Week 1 and Week 2 Discussions to get credit for each module’s Discussion.

Posting early each week will allow for more opportunities for leading the discussions, making substantial contributions, and engaging in meaningful and mutual discussions with others.

Week 2: Merger and Unit Integration Issues

Actions for Week 2: Merger and Unit Integration Issues

Using the same scenario as Week 1 of this Discussion, answer the question in bold below.

Describe three key elements of your merger plan.

Remember, after you submit your answer each week to the Discussion Question itself, you also need to respond to at least two of your classmates’ posts.

(In total for this module’s two-part Discussion Forum you should have contributed at least two Discussion Question posts and four response posts to your classmates.)

You must participate in BOTH Week 1 and Week 2 Discussions to get credit for each module’s Discussion.

Posting early each week will allow for more opportunities for leading the discussions, making substantial contributions, and engaging in meaningful and mutual discussions with others.

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Explanation & Answer

Attached.

Running Head: MERGER AND UNIT INTEGRATION ISSUES

Merger and Unit Integration Issues
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MERGER AND UNIT INTEGRATION ISSUES

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Merger and Unit Integration Issues
In this article, I will outline, as the merging manager of the two units in the different
organizations, some of the issues, opportunities and challenges of the merging process. In
addition, I will highlight the key elements of a merge plan.
Merging of companies or organization is a business strategy used by the dominant
company or organization to strengthen their profitability. They enter into the agreement to help
them achieve product diversification of a variety of products, reduce the global foreign exchange
risk by merging with the companies in such countries, improve their financial base, enjoy the tax
advantages of carryforward loss tax and increase the efficiency of operation by reducing the
operation cost of economies of scale. However, this process comes with greater risks and great
losses if not properly planned. The companies usually lose their motivation to continue with the
merge process after realization of huge losses (Whitaker, 2012).
Mostly, the mergers are greatly influenced by the variations in the very cultures of the
companies. Due to culture clash, the staff feels confused and anxious since they realize the two
companies have parallel methods of carrying out their activities resulting to demoralization and
defections. Further, none of the companies will be equipped with the necessary skills to fix the
problems thus leading to accelerated negative growth. Mercer confirmed this in 2004 when it
found out that 75% agreed that culture clash is the major challenge in merging organizations. For
instance, in 1998, the best-fit merge of transatlantic merger of Chrysler and Daimler Benz failed
due to culture clash (Whitaker, 2012).
Subsequently, the merging process of rigorous planning and implementation involves a
lot of communication that often at times is mishandled. Due to the complex nature of the
merging process, the senior management of the companies usually face the challenge of not

MERGER AND UNIT IN...


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