The paper "Applied Mergers and Acquisitions, Why Do Employees Resist Change" is an outstanding example of a business assignment. In a period of four years, Marks and Spencer had very slow growth rate due to high competition in its clothing business and difficulties due to economic and political difficulties in overseas business such as Russia, Turkey and Ukraine, high tax. This caused conflicts between the company and shareholders. In such a situation, a company ought to focus on strategizing and focus on long term solutions of profit-making (Hulland, 2015). They also have to renegotiate the first deal with the shareholders so that they stay informed about strategic plans.
To increase profits, a company can increase the prices of products. This strategy is hard to implement due to the fear of losing customers but statistics show that over 80% of customers purchase items based on their value and not price. In the absence of a value, customers make decisions based on price but perceived differences between value in certain products and services, customers make decisions based on value (Hawes, 2015). Listen to customers so as to understand their wants, desires and frustrations 1b.
NHS Government wishing to modernize the services provided, some staff resisting changes Employees may resist change and especially modernization due to fear of layoffs if the technology needs employees with higher qualifications. They may also resist change if they were not consulted about the possibility of the change. To solve the conflict, the government is supposed to consult with the employees so that they feel part of the decisions that are made and offer free training to all employees who are capable of using the modern machines so that they don’ t have to worry about layoffs (Tejvan, 2012). 1c.
Tesco Management wanting to expand globally, customers locally not liking the product choices available, or the prices Sometimes the local customers may not like certain products or services offered while the management concerned about the preferences of the international community. In such a case, a company may decide to merge with another company that has already made it. This would help the company to avoid competition from other major companies. By so doing, they may get a monopoly to raise prices (Tejvan, 2012).
A merger between Sainsbury’ sand Tesco would significantly reduce competition amongst UK supermarkets, leading to higher prices for basic needs. Expanding the company will also help the company to access a large number of customers who may have different preferences. It also helps to get new employees with greater talents and new mindsets. This will also help the company have a good reputation.
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Robert F. B., (2004). Applied Mergers and Acquisitions, 11, 45-76
Tejvan, P., (2012). Advantages and disadvantages of mergers, Retrieved from http://www.economicshelp.org/blog/5009/economics/pros-and-cons-of-mergers/
Paul, S., (1996). Why do Employees Resist Change?; Journal of Harvard Business Review, 5, 18-21
Brook Intelligence Center and Property (2013). Marks and Spencer makes profit after four years, Journal of Brook Intelligence Center, pp. 6
Richard, L., (2016). Profitability Indicator Ratios: Profit Margin Analysis, Journal of Janus Capital Group, vol.4, 22-43.