The paper "Indigo Books and Music and Chapter Merge " is a good example of a business assignment. Merger refers to the aspect of corporate finance, corporate strategy and management that deals with the combination of different organizations or companies to help the company grow and develop in a given industry. This means that two companies join and become one. In the case study below, we consider two companies, Chapter and Indigo. Indigo took over Chapter after this company encountered numerous losses. Reisman, who is the founder of Indigo Company, is thus faced with challenges regarding the management of the two organizations after they formed a merger.
It is necessary to note that the two companies had similar organizational structures, but then there are other structural issues that have to be addressed so that the organization remains functional. For instance, the new organization contained more stores and staff, which therefore calls for the development of a new organizational structure to enable the new organization to run effectively. The discussion below will elaborate on the organizational structure Indigo Company should adopt considering both the internal and external environments in which this company operates.
The discussion will also incorporate the effects technology has on the organizational design that will be adopted by the new organization. Question 1: Structural issues that need to be addressed when two organizations merge Organizations resort to merging or consolidation to ensure their threatened survival in order to continue providing opportunities and offer valuable programs to their customers. It is actually meant to make the company more profitable and remain competitive in the market. In this study, Indigo took over Chapter to form a merger.
However, when two companies form a merger, there are often various structural issues that need to be addressed in order to enable the new organization to attain its strategies and become effective. The first structural issue that needs to be addressed concerns the new organization’ s internal culture of the company. Each organization had its own way of doing things and personality, for instance, the personal policies, health insurance and other operational issues. It is challenging to simply plop one style into the other. There has to be a reworking of both companies’ cultures in order to make them cohesive (Pinsonneault, and Kraemer 662).
This also incorporates the anticipated changes in the major executive positions within the company. For instance, Indigo’ s marketing manager could experience difficulties in dealing with Chapter’ s production manager. Therefore, the new structure has to ensure that the staff is compatible and can work with each other. Another structural issue to be addressed includes the overall customer’ s orientation into the new company. Chapter had its own customers, some of which have entirely depended on its products for a long time.
The fact that the company has now merged with Indigo might present challenges to its customers and furthermore posing a bigger challenge to Indigo Company, which is now faced with the task of customer orientation. It has to convince customers that the merger between Indigo Company and Chapter Company will produce products and services that meet their expectations. The other issue concerns the company’ s employees. After the merge, there was an estimate of about 7000 employees. This is a large number, which then calls for downsizing in order to come to a workable number.
It is thus difficult to establish the criteria to be used in arriving at the required number of employees considering the fact that the employees have been drawn from two different companies.
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