StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Premium+

Culture, Change/Integration in Mergers and Acquisitions - Research Paper Example

Cite this document
Summary
This paper "Culture, Change/Integration in Mergers and Acquisitions" will look into mergers and acquisitions using a case study of Premier Foods and RHM as the basis for investigating the components of an acquisition. In this instance, a different approach is engaged in. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.7% of users find it useful

Extract of sample "Culture, Change/Integration in Mergers and Acquisitions"

Download file to see previous pages

The subject of culture and integration in merger and acquisition companies is usually thought of as a secondary task in the process. In fact, its importance and significance are just as significant as the analysis and synergies that are a part of the profit and market growth considerations that put the prospective company on the M&A radar (Gaughan, 1999, P.). The size of multinational corporations (MNC) was brought forth in a report titled ‘Growth in Multinational Corporations and the Impact on Culture’ that examined a number of theories on MNCs that included their impact globally as a result of there growth, along with different facets as represented by culture.

In general, when one thinks of merger and acquisition activity the general definitions skew the thinking in terms of revenues, profits, market expansion, investment, and shareholder value. Research conducted on the definition of M&As supported this general worldview as evidenced by a number of sources. The Financial Times (2009) defines the term “… the acquisition may or may not lead to a merger, from an investment banking point of view the two concepts require the same expertise.

M&A activity can result in consolidation or rationalization in a particular sector or industry.” Another definition states that an M&A (FreeDictionary, 2010): “…is a combination of two companies where one corporation is completely absorbed by another corporation. The less important company loses its identity and becomes part of the more important corporation, which retains its identity. A merger extinguishes the merged corporation, and the surviving corporation assumes all the rights, privileges, and liabilities of the merged corporation”.

The two preceding definitions definitively support the contention raised in terms of the view of merger and acquisition activity that uses a third definition to indicate the conceptual focus of areas. This added definition states that M&As are an “Area of banking or financing that deals with funding of acquisitions, mergers, and takeovers. It is usually an area of specialty of corporate lawyers, merchant banks, and stock brokerage firms” (BusinessDictionary.com, 2010). In adding to the foregoing investigation of M&As, Drew (2007) explained that mergers and acquisitions increase shareholder value.

The point of this seemingly drawn-out emphasis is that the financial, growth, expanded market, and revenue side of the merger and acquisition ledger predominates when one looks at definitions. Straub (2007) stated that the benefits of mergers and acquisitions include the creation of economies of scale as a result of the increased size resulting from the activity, along with the enhancement of market power. In looking into the performance of merger and acquisition activity, the results these combinations have achieved does not bespeak a stellar track record.

KPMG conducted a study on this very point and found “83% of all mergers and acquisitions (M&A’s) failed to produce any benefit for the shareholders and over half actually destroyed value” (Giletson et al, 2001).

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Culture, Change/Integration in Mergers and Acquisitions Research Paper, n.d.)
Culture, Change/Integration in Mergers and Acquisitions Research Paper. Retrieved from https://studentshare.org/business/2022641-mergers-and-acquisitions
(Culture, Change/Integration in Mergers and Acquisitions Research Paper)
Culture, Change/Integration in Mergers and Acquisitions Research Paper. https://studentshare.org/business/2022641-mergers-and-acquisitions.
“Culture, Change/Integration in Mergers and Acquisitions Research Paper”, n.d. https://studentshare.org/business/2022641-mergers-and-acquisitions.
  • Cited: 0 times

CHECK THESE SAMPLES OF Culture, Change/Integration in Mergers and Acquisitions

Organisational Transformation in Practice

Corresponding literature findings: mergers and acquisitions act as change agents in corporate restructuring (DePamphillis, 2011; p.... Organisational changes that follow mergers and acquisitions are usually uneven and face numerous obstacles.... Studies related to organisational change and mergers and acquisitions provide vast and diverse views that are mostly practically implementable and have been successfully implemented in many situations....
12 Pages (3000 words) Essay

Management Planning Paper

The company had made almost 65 acquisitions or mergers in only 6 years.... The first one was the way they grew through aggressive acquisition of companies, second was the strategy of senior executive loans and the third and foremost was the way in which they did business which was against the code of corporate governance and had exposed them to threats related to fair and arm's lengths transactions (Kiron et al 2004; Securities and Exchange Commission 2003) The acquisitions and mergers have been mentioned above where it can be clearly seen that WorldCom made a large number of acquisitions in a short time and this created for the company as a whole....
4 Pages (1000 words) Essay

Mergers & Acquisitions

mergers and acquisitions represent the ultimate in change for a business.... With the increased competition to fetch the customer satisfaction in a cost effective way, the companies have responded to the pressure of attaining scale in a quickly consolidating global economy “mergers and acquisitions represent the ultimate in change for a business No other event is more difficult, challenging, or chaotic as a merger and acquisition.... his report will look into the mergers and acquisitions of companies in the light of current issues....
10 Pages (2500 words) Essay

Human Resources Planning in Mergers and Acquisitions

Human Resources Planning in mergers and acquisitions Abstract Mergers and acquisitions (M&A) is a type of corporate strategy where two companies are consolidated to form a new company in case of merger and one company buys the other in case of acquisition.... Introduction mergers and acquisitions lead the way for enormous growth but it is not possible without having a competent Human Resources team which plays a critical role in making or breaking the M&A.... Though mergers and acquisitions aim at the growth of the organizations but in reality, these are extremely difficult corporate practices in the sense that the expected synergy is often not achieved and follows a complex and exhaustive process of strategy implementation....
8 Pages (2000 words) Term Paper

Performance Measurement in a Post Merger Integration Process

There have been many studies which have been looking closely into the issue of outcome of the mergers and acquisitions.... 13)Outcome of mergersMany studies that have conducted research on mergers and acquisition have basically centred on some of the interesting characteristics of the mergers.... In the recent past there have been increased trend toward formation of mergers as companies strive to position themselves in the changing world.... n the recent past, there have been increasing interest on the issue of mergers....
13 Pages (3250 words) Essay

Post-acquisition cultural integration the case of Arcelormittal

hellip; This research will attempt to determine the steps taken by Arcelor and Mittal in achieving the cultural synergy; to ascertain the importance of planning in achieving cultural synergies in international mergers and acquisitions; to ascertain the likely outcome of the merger in years to come and to make recommendations of the strategy that the firm should adopt in achieving synergies.... The first stream of literature is based on understanding the concept of mergers and acquisitions....
70 Pages (17500 words) Essay

Fallon Worldwide Change

Describing about the negative impacts this can be observed that Fallon may face integration problem because... It is an energetic agency in the relevant field.... Recently the agency has been purchased by another advertising giant Publicis Group SA.... The acquisition was done due… Now after the acquisition, management of Fallon started to decide the way for repositioning this agency in the market and also the new way for approaching to the customers....
4 Pages (1000 words) Essay

Integration and Cultural Change Processes in Mergers and Acquisitions

In the paper “Integration and Cultural Change Processes in mergers and acquisitions” the author tries to answer the question: How close would the cultural fit be and how might you seek to improve cultural understanding between the two groups of managers?... hellip; The author states that with economic recession and the process of globalization, international mergers and acquisitions have become a popular form of corporate development irrespective of the post-merger success....
10 Pages (2500 words) Dissertation
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us