Integration of Organization - Assignment Example

memorandum to: from: subject: Integration of organization date: Definition: Integration Integration of organization usually is the aspects that two or more companies take through incorporating their views, mix reactions, decisions, and goods and services so that the two organizations can arrive at a certain objective. In the case provided for SABMiller organization to integrate with Fosters Company certain aspects must be taken into account so that all aspects are met without any inconveniences occurring during the process. Nonetheless, it won’t be easy for both the companies to incorporate that easily because of some aspects that affect the integration process although this will be taken into account and the problem arrested before it thus damages the amalgamation process (Pettigrew and Whip, 1991). Aspects that will facilitate integration process In order for the two companies to arrive at particular intended goals, several efforts must be considered. However these efforts have in the past gone through several banners for instance, there must be a well formed cultural change, quality management, and a process of reengineering, structuring and rightsizing. All these efforts have the same aim of achieving a fundamental goal over how the businesses corporations will cope with the new demanding market setting. Apparently, very few of these corporate efforts have bore successful fruits while a few have also uttered failures. In this case most of the efforts fail in between due to a distinct that derives towards a lower end of the extent. a) Attitude of change Integration within Companies become successful when there is an attitude of change that goes through a phase of integration usually within consideration duration of time. Through skipping certain laid down steps creates an illusion process which lowers determination and speed which further delays and produces unsatisfying results. b) Avoiding mistakes In the process of integration it is critical that critical mistakes within the phases be avoided since this can cause a devastating impact within the two companies thus slowing down the process and the momentum further negating the hard-won gains and interests. c) Having a managed change/planned programs In order for Foster and SABMiller there should be a managed change within these two organizations which will result into unpredictable outcomes. Through having planned programs of change within the organization will thus assist in attaining an anticipated outcome and the intended consequences. d) Understand failure Generally, the companies must be aware of their frequent failure in organization change and come up with roles of interventions, try to make changes that are context sensitive and finally follow up the basic rules and guidelines to successful incorporations. e) Having company strategies There should be strategies that show how the organizations outcome is being influenced through how change recipients are making sense of the laid down strategy. More often “Strategy is the direction and scope of an organization over the long-term, which achieves advantage in a changing environment through its configuration of resources & competences with the aim of fulfilling stakeholder expectations” (Johnson et al, 2008: 1). Also this can be understood as “Strategy is the pattern that emerges over time from the decisions and actions taken by the members of an organization” (Pettigrew and Whip, 1991). It is through the strategies that, if the companies are lacking attention to the roles that the members are playing in trying to incorporate the change and challenges then it will be appropriate for the members to change the implementation process, planning process through managing a top-down fashion which will assist in linking the companies towards the same goal. It is through this that Johnson et al, 2008: 1 state that, “Change can be like an old slot machine, where a penny placed in the top can take many different paths so that you can’t know in advance what you will get out at the bottom. Similarly, senior managers cannot foretell the impact of interventions they initiate from the top as recipient interpretations are only partly influenced by senior manager plans and actions. Recipients are equally, if not more, influenced by the lateral and largely informal processes of communication between themselves in their day to day work” Johnson et al, 2008. In this case it is understood that it will be appropriate to reconceive the process of approaching the administration of the top-down within the two companies. f) Examining sense making process It is also proper that the two organizations through their representatives try examining their sense making processes. This is because, for the two organizations to integrate they ought to involve a shift in the shared beliefs and assumptions on how events within the organizations happens as they integrate and also how individual within the management are acting in different company situations. This assumptions and beliefs will include things like ways of interactions with fellow colleagues from the other company and customers, management styles and various working aspects while working with team mates. Also, the beliefs will comprise of aspects as the individual levels of schemata and how the group levels are coordinated and their actions of behavior (Pablo and Javidan, 2004). Aspects that impede integration process However, some aspects impede the integration process thus creating a queer atmosphere for the companies integrating in a systematic manner. These aspects can be discussed as things that bring fail and conflicts amongst the members working together in the two companies. a) By not creating a powerful enough guiding coalition By not creating a powerful enough guiding coalition it means that whenever individuals in the two organization lacks to form a successful transformation efforts, they form a minimum mass thus their relationship ties and efforts renders fruitless and the set goals are not achieved. It is thus the duty of the leaders of the two companies to create a coalition that is firm and shares commitments aimed at excellence performance. It is also for the best of the companies to choose a group of members from both the companies who have enough power to thus lead the change effort and by doing this the two companies with have a better integration which will bare fruits. b) Lack of vision amongst the members of the organization. The other thing that renders the companies not integrate is lack of vision amongst the members of the organization. It is the thus the objective of every guiding coalition to build up a depiction of the prospect which will be relatively easy to develop and communicate and also to appeal to the stockholders, employees and also to the customers of the two parties. It is through this that they will realize that vision of the companies will go beyond the numbers given in every five year plans. b) Lack of vision It will be the duty of the two companies through their representatives to understand that without developing a sensible vision, there can arise a disseverment in the transformation effort thus creating a confusing and also incompatible projects which may lead the integrated companied go in the wrong direction thus making the reengineered projects and performance appraisal, quality programs and cultural change projects add u to meaningless way. Steps that help in improving integration process In addition to the reasons discussed above, there are several steps to be taken in order to improve the integration process of the two organizations. a) Laying down their managerial perspective The immediate action will be for both companies to come together and lay down their managerial perspective that relates to culture in this sense have an understanding on the impact of their organization history which comprises of revisiting their strategy drifts, having historical analyses their history and strategic positions. b) Incorporating cultures Usually, by trying to incorporate culture helps both the organizations understands their values, goals and roles. Indirectly the two organizations will thus incorporate their cultures and come up with one which will take them into the next level of integration where they will work with the same culture towards achieving the set goal (Buckley and Ghauri, 2002). c) Developing organization strategies The other thing that the two companies should focus upon is the development strategy, this aspect usually engages upon how they should integrate for the main goal of achieving success through a developed strategy. For the two companies Foster and SABMiller to attain achievement and proper integration process certain strategies of developments should be put in place going by the life cycle theory which expresses the need for change as the pre-stages of events or phases are taking place. This usually assist the companies to undergo process of maintaining a specific goal in times of change, conflicting interests arises and struggles as explained through the theory of dielectric. d) Having a perfect implementation process Moreover, implementation process should be a limelight to the two companies integrating together. This usually plays a great role since each company have a goal in trying to implement their organizational structures, rules, employees and working conditions to look more better and productive. Implementation process thus will be achieved only if there will be a continuous integration of the companies laid down rules and regulations that each member from each company is undertaking failure to which problems and lack of progression will arise. e) Creation of knowledge Alternatively, both companies should come up with the knowledge that will benefit the other through the aspects of implementation process in the sense that all ideas that each company contributes will be of great help to expansion and will bore fruits to both the companies (Buckley and Ghauri, 2002). f) Having an extended corporate performance Through having an extended corporate performance will also benefit both the companies in a significant way in such a case that Teleological theory explains where, changes as planned in several progressive stages guides the companies to growth and expansion. Here the theory expresses the changes which will be progressive if there is a corporate performance towards achieving the specified goal within the specified period of time. Corporate performance will involve all the members coming together for a common goal that is to achieve excellence with both companies benefiting from the set goal. Corporate performance will also assist the members in the companies come up together build a team that will boost the productivity and make the company excel with its performance growing rapidly. Conclusion In conclusion, after the integration of the companies the economic value will thus be generated through the combined resources from SABMiller and Foster. This aspect will thus provide a takeover advantage which bring about development in terms of production in efficiency and also in terms of saving the cost because there will be a readily increase of concrete possessions. It is through the integration process that SABMiller Company will attain a long term run through enhancing its brand name thus making it difficult for any competitor to duplicate its new brands. Through integration of the two companies there will be benefits brought about by takeover in the markets whereby there will be a wider range of customers brought in by both parties, there will be a lower bargaining power of their supplies and also they will have a stronger to be competitive to other companies and their result will eventually be a high rank in making higher market cost in terms of becoming very dominant in the world and also in saving the costs (Carter and Kourdi, 2003). In addition, by the companies integrating their ideas there will be an increase in capitals since the strategy and financial advisory services that are being offered by SABMiller will help in supporting the companies from any trouble after the processes of takeover. However, there will be a valuable understanding and knowledge of working together in their respective markets mainly because through their combinations there will emerge greater opportunities in terms tangible assets that will be integrated and expanded thus creating a very powerful engine which will assist in enhancing a combined entity that is capable of functioning in a more effective and which will deliver better quality of services and products as compared to other companies which are working separately. Here integration process will further bring in top administration and managerial skilled officials who will come up together to assist in solving the problems that arises from ibid. however, the Australian consumer markets will further be build and confidence will be rebuilt through the popularity of SABMiller which has emerged as the second best brewing company in the world. Through this re-union SABMiller will thus gain better technology knowhow since it will have adopted much of the innovation processes which Fosters emerges to be the best in and thus enhance the company’s abilities to produce and provide quality and better services while maintaining a sustainable and independent competitive status (Pablo and Javidan, 2004). References Buckley, P.J and Ghauri, P. 2002, International Mergers and Acquisitions: A Reader, The Thomson, London. Carter, S. and Kourdi, J. 2003, The Road to Audacity: Being Adventurous in Life and Work: Palgrave Macmillan, New York. Ford, J. D. 1999, Organizational change as shifting conversations: Journal of Organizational Change Management 12, 480e500 Johnson, G., Whittington, R. & Scholes, K., 2011, Exploring Corporate Strategy: London: Prentice Hall. Pablo, A.L. and Javidan, M. 2004, Mergers and Acquisitions: creating integrative knowledge: Blackwell Publishing Ltd, Malden. Pettigrew and Whip, 1991, managing change for competitive success: Blackwell, Oxford Read More