Preview

Acquisitions, Buyouts and Mergers: Oh My!!

Powerful Essays
Open Document
Open Document
3243 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Acquisitions, Buyouts and Mergers: Oh My!!
Acquisitions, Buyouts and Mergers: Oh My!!
Barriers and Solutions Paper
Raymond J Papke Jr
Concordia University
MBA580-Leadership and Organizational Behavior
10/11/12

Abstract
Acquisitions and mergers have become a staple in today’s economy. Whether on the acquiring end or on the receiving end, organizations experience all kinds of issues during these processes. This paper will highlight W.W. Grainger acquiring Imperial Supplies LLC in October, 2009. Imperial experienced and continues to struggle with changes to the very core of their existence. Processes that had been in place for 50 years were now about to change. Culture that created the dominant sales force was now being transformed. Both procedural and cultural barriers have challenged the management, employees and customer base of Imperial. We shall examine each of these barriers in detail and provide a solution to overcome the barriers.

The pounding force of today’s turbulent economy has spawned a whirlwind of mergers, acquisitions and corporate restructures. It is this tumultuous atmosphere that caused a deteriorating American Capital Ltd. to peddle Imperial Supplies LLC to W.W. Grainger in October of 2009. This acquisition, while proven successful for both Imperial Supplies and W.W. Grainger, hasn’t come without its share of transitional pains. In this paper we will document two such discomforts that have impeded the acquisition process for Imperial Supplies, procedural barriers and cultural barriers, and provide specific implementation strategies for removing these barriers during the transformation process. Merger and acquisition has proven to be a resilient force of change during economic upheaval for countless organizations. While acquisition can be extremely successful for an organization, unless handled delicately it can also create chaos. Culture, transformational processes and change strategies hamper a successful organizational transformation. We only need to



References: Blank, Chris (2012). The advantages & disadvantages of the acquisition of another company in the same industry, Chron. Retrieved from http://smallbusiness.chron.com/advantages-disadvantages-acquisition-another-company-same-industry-31362.html Dumon, Marv (2008). Biggest merger and acquisition disasters. Investopedia. Retrieved from http://www.investopedia.com/articles/financial-theory/08/merger-acquisition- disasters.asp#axzz290SWUKsS Matta, C. (2012). Why it’s important to feel valued at your job. Psych Central. Retrieved on October 11, 2012, from http: //psychcentral.com/blog/archives/2012/10/09/why-its-important-to-feel-valued-at-your-job/ Robbins & Judge (2011). Organizational Behavior (14th ed.). Boston, MA: Prentice Hall. Rubin, Gretchen (2009). Stop expecting to change your habit in 21 days. Psychology Today. Retrieved from http://www.psychologytoday.com/blog/the-happiness-project/200910/stop- expecting-change-your-habit-in-21-days

You May Also Find These Documents Helpful

  • Better Essays

    Ernst & Young (1994), Mergers and Acquisitions, John Wiley & Sons, New York, NY, pp. 234-9. Retrieved 2012-02-03…

    • 999 Words
    • 3 Pages
    Better Essays
  • Better Essays

    Hcs/514 Merger Analysis

    • 1642 Words
    • 7 Pages

    The intent of this memo is to address the importance of communication within the company and the merger impact of organizational culture on products and services. This memo also will explain organizational behavior and how it affects quality, competition, and human relations, and how job design, work processes. Additionally, this memo will explain how performance expectations can affect organizational outcomes. Last, this memo will highlight strategies that…

    • 1642 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    This essay will discuss the transition of the employees and the impact the merger will have on the culture of the new combined organization and will address how systems will be developed as the new organization takes shape.…

    • 1451 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Bushwaker Case

    • 1093 Words
    • 5 Pages

    The main goal of this research is to find out if the acquisition is the source of uncertainty for employees. Many mergers tend to create anxiety, pressure, uncertainty, which increases their intension to leave the company.…

    • 1093 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    On November 17th, 2004 Kmart and Sears publicly announced the impending merger of the two struggling companies to become Sears Holding Corporation. Kmart, for 11.5 billion dollars would be the buyer, however due to strong brand name recognition and history, Sears would be the face of the new conglomerate. At the heart of this merger was Edward Lampert, an extremely successful hedge fund manager who had made a name for himself by, purchasing companies in the red and making them profitable once again. There were numerous detractors who though the idea of simply combining two once formidable chains, who now were both failing, into the third largest retailer without regard for the structural problems that doomed both companies in the past would simply delay the inevitable. Lampert thought otherwise, even without extensive management experience, he had previously demanded positions on the executive board of past companies he had bought majority shareholder status in when they were in the red. From this vantage point, he did have some experience with faltering chain stores, and this situation was similar.…

    • 3701 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    The background of this paper we need to mention is that West Coast Fashions, Inc. (WCF), a large designer and marketer of branded apparel announced a strategic reorganization calling for a divestiture of certain assets, and one of the divisions it intended to shed was Mercury Athletic, its wholly owned footwear subsidiary. John Liedtke, the head of business development for Active Gear, Inc. (AGI), a privately held athletic and casual footwear company, contemplated an acquisition opportunity of Mercury that would significantly improve his business. So, he wanted to evaluate this opportunity.…

    • 1043 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Case Study: Radio One, Inc.

    • 2476 Words
    • 10 Pages

    References: 1. Impact of Culture On Mergers and Acquisitions: A Theoretical Framework. International Review of Business Research Papers. Mohibullah., Vol. 5 No. 1 January 2009 Pp. 255- 264. 2. Why Do Mergers Fail? What Can Be Done to Improve their Chances of Succes? R. Salame. Key Strategy Papers. January 2006.…

    • 2476 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    On April 1, 1984, Peter Browning assumed the position of vice president and operating officer of Continental White Cap, a Chicago-based division of the Continental Group, Inc. Having completed a successful five-year turnaround of Continental’s troubled Bondware Division, Browning found this new assignment at White Cap to be a very different type of challenge. He was taking over the most successful of Continental’s nine divisions—“the jewel in the Continental crown,” as one Continental executive described it. White Cap was the market leader in the production and distribution of vacuum-sealed metal closures for glass jars. Browning’s charge, though, was to revitalize and reposition the division to remain preeminent in the face of threatened, but not yet fully realized, changes in the competitive environment. Sales were stable and costs were up. Recent years had brought changes in the market: one competitor in particular was utilizing price cuts for the first time to build market share, and the introduction of plastic packaging to many of White Cap’s traditional customers threatened sales. White Cap had not yet developed a plastic closure or the ability to seal plastic containers. After more than 50 years of traditional management and close control by White Cap’s founding family, corporate headquarters decided it was time to bring in a proven, enthusiastic manager to push the business toward a leaner, more efficient, and more flexible operation—one capable of responding to the evolving market conditions. From the very start, Browning recognized two major obstacles that he would have to address. First, few managers or employees at White Cap acknowledged the need for change. Business results for more than 50 years had been quite impressive and when dips were experienced, they were perceived as cyclical and transient. Second, White Cap had a family-style culture characterized by long-term loyalty from its employees,…

    • 3407 Words
    • 14 Pages
    Powerful Essays
  • Best Essays

    * For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.…

    • 1845 Words
    • 5 Pages
    Best Essays
  • Powerful Essays

    Aol & Time Warner Merger

    • 1779 Words
    • 8 Pages

    A decade ago, America has witnessed its biggest merger of their history when AOL and Time Warner merged for an all stock deal with a combine value of $ 350 billion which also created the world’s largest media and Communication Company, but today I want to re-examine this ill-fated deal and try to explore what went wrong. In an initial statement about this merger and probabilities of new company it was stated that this merger will lead to a speedy development and growth for all its businesses. It will not only provide AOL a new broadband interactive platform, but the companies can also grow their revenue through cross marketing from movies, music, and internet to telephone.…

    • 1779 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Frank Mason

    • 1928 Words
    • 8 Pages

    Frank Mason and Abbott Business Supplies (ABS) are both at pivotal moments in their respective histories. ABS is a San Francisco-based regional manufacturer and supplier of stationery products and related business supplies with annual sales on the order of $10 million. Previously family-owned, it was acquired 18 months ago by military avionics producer Houston Electronics (HE), whose annual turnover is likely 2 orders of magnitude more than that of ABS. ABS acquisition was not a popular decision among the top managers at HE, and the sole supporter, a high performer named Ed Nolan, was tasked by HE management to be president of ABS and improve the company’s performance. After the first year, it was reported by a consultant with ties to ABS that the company was in serious trouble and desperately in need of someone to turn it around. Enter Frank Mason, a 35 year-old Harvard MBA who is a rising star in his own right. After college, 4 years in the Navy and his time at Harvard, Frank rose quickly making a name for himself in the marketing division of Great Pacific Paper Company (GPPC). After his first 5 years there, Frank began to feel a sense of personal stagnation and a feeling that there were no new challenges offered for him there. Frank yearned for a challenge along with autonomy that he could use to test his limits and evolve into the next phase of his career. Frank soon got that opportunity at a sporting goods retailer (Gleason Pro Shops), but corporate financial problems forced them to let him go after only 18 months. After leaving Gleason he was offered the Sales and Marketing VP position with ABS through an agency. He was initially uninterested, even though the job offered a much higher salary. After interviewing with Ed Nolan, however, he learned that there was an opportunity at rapid advancement in that he could be president within 2 years, that he would have full autonomy in his position, and that Ed was a likeable charming and…

    • 1928 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    1. What are the cultural differences that may impede success after the merger and acquisition?…

    • 1706 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Ad High Tech

    • 5849 Words
    • 24 Pages

    OVERVIEW Chris Johnson arrived at the A&D High Tech headquarters in Cupertino, California to attend a meeting with his senior managers. It was early May and the previous months had been long and difficult for him. He had just led a project team that successfully revamped the supply chain systems in less than six months. He was especially proud since many inside observers had doubts that the project could be completed on time. As part of the strategic initiatives set forth by its CEO and Founder, Ted Walter, A&D was to be second-to-none in utilizing technology to increase operational efficiency and reduce cost. The supply chain project therefore received notable attention in the boardroom and with its competitors. After a well-deserved vacation, Johnson received an urgent message from the CIO, Matt Webb. He asked Johnson to join him for a meeting to discuss taking over the on-line store project. Johnson realized that the company’s top brass had ignored the Internet until recently. As Webb explained, the VP of Sales had advised Walter that A&D was losing its competitive advantage by not selling on-line. Walter had put this project on the highest priority. Specifically, Walter wanted to know whether this was something that could be completed in time for the Christmas shopping season, a time when A&D’s cyclic business has traditionally boomed. The current project manager, Eric Robertson, was taking a 1-month leave of absence due to a family emergency, just as he was about to begin formulating the project plan and make staffing decisions. In his twelve years as a technology project manager, Johnson had a strong track…

    • 5849 Words
    • 24 Pages
    Powerful Essays
  • Powerful Essays

    Mercury Athletic Footwear

    • 994 Words
    • 4 Pages

    West Coast Fashions, Inc. (WCF), a large designer and marketer of men’s and women’s branded apparel recently announced plans for a strategic reorganization. Active Gear, Inc. (AG), a privately held footwear company, was contemplating an acquisition opportunity. John Liedtke, the head of business development for AG, was interested in a WCF subsidiary. The subsidiary that Liedtke and AG intended to acquire was Mercury Athletic (MA), a footwear company. Liedtke thought acquiring Mercury would roughly double AG’s revenue, increase its leverage with contract manufacturers and expand its presence with key retailers and distributors. In order to provide a solid recommendation to Liedtke, further analysis must be performed.…

    • 994 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Questions & Answers

    • 1372 Words
    • 6 Pages

    In evaluating each company's history and its current standing within the industry, a clash of employee cultures must be considered. The merged airline will be headed by existing AWA senior management. However, a smaller, younger, more fluid, and profitable carrier merging with a larger, unprofitable, legacy carrier has the potential for two organizational problems. First, the merged company has elected to utilize the US Airways name, a perceived stronger brand image than AWA, and this decision could cause disgruntlement with the employees of AWA, stakeholders in the more profitable company. Second, because AWA is a younger company, some employees may have lower seniority than their USA counterparts.…

    • 1372 Words
    • 6 Pages
    Powerful Essays