Decisions for acquiring two companies were taken by the company in hurry and all the implementation and changes took place very quickly. The company changed the name of both the acquired companies from the great outdoors to Templeton Caravans and from Lodeston Landscapes to Templeton landscape solutions. Templeton planned to operate all the business from existing hardware store locations. All The landscape solutions outlets were brought together with hardware stores. The great outdoor showrooms also brought under or adjacent to hardware stores. Action Impact on Organisational Members
The Action taken by management impacted the organisational members in great way. All three businesses companies were operating required different job skills and knowledge skills. Company was not able to retain employees working earlier in these organisations hence they brought new staff on board which was not knowledgeable and experienced. Templeton was new in the businesses and existing employee base was not having knowledge about product and services associated with caravans and landscaping. A study conducted by Ashwin W. Joshi and Sanjay Sharma on customer knowledge development and success of new product provides insight that product knowledge plays a very important role in success of product. If employees are not aware of the product, how they can convince the customers, it will be difficult for them to sell the products (Ashwin W. Joshi and Sanjay Sharma, 2004). It was also noticed that employees were not motivated enough and trained to effectively deal with customers. The reasons could be less knowledge about the product, high work pressure or working environment. Eugene Sivadas and F. Robert Dwyer in a study mentioned that many companies acquire well known business to speed up their growth process. It also reduces the risk associated with launching a completely new product in the market. Around 70 percent of such deals fail because companies fail to manage innovation required for the product, proper cooperation between the departments and functional areas (Eugene Sivadas and F. Robert Dwyer, 2000). Innovation term referred to advancement of product technically or any variation in product-service (Wm. E. Souder and Svenn Are Jenssen, 1999). In the given case the reason for failure of the products were the employees who never attended customers properly, there were no innovation done to the product and after sales services were also poor. Over all the performance of employees was declining which impacted the sales and profit. Issues Arises While Implementation of newly acquired products The major challenges faced by the organisation were insufficient knowledge, lack of desired skills of employees and managers. There was insufficient planning with regards to the implementation of the corporate rebranding efforts. This was evident in that no market or feasibility research was conducted prior to the acquisitions. The change management was not done properly and decision of acquisition was taken and implemented very fast. We will do an analysis to see the strengths, weaknesses, opportunities and threats organisation was having at the time of acquiring two new different businesses: Strengths:
* the organisation is dealing in hardware business for several years and is well-known renowned name in providing hardware solutions * one of the biggest hardware retail chain in Australia
* strong financial base
* huge customer base
* no knowledge of other businesses
* Acquired businesses required technical skills and knowledge * Failed to see the complexity of the...