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YUMMY COMPANY GOES TO DAVAO CASE MERGER
Discuss the implication of Yummy’s business plans for its human resource plan for next year?
If the acquisition is implemented, how will HR go about ensuring that “merger” occurs with the least organizational disruptions?
The problemA merger ocPre-acquisition processcurs when one company is combined with and totally absorbs another. Operations, facilities, and functions are rationalized and combined for maximum efficiency. The cultural beliefs, norms, and infrastructure of the acquired organization generally change to the acquiring culture for the integration purposes. The acquired organization effectively loses its identity. If the acquisition is implemented, how will HR go about ensuring that “merger” occurs with the least organizational disruptions?
QUESTION 4 What HR-related issues will Mrs. De La Cruz bring to the strategic planning sessions?
QUESTION 1 The Problem Despite a well planned strategy acquisitions have found to be a failure, and the main reason attributed for the failure is the challenges faced in managing people related issues.
QUESTION 2 QUESTION 3
•Horizontal mergers for market dominance or economies of scale•Vertical mergers for efficient channel control•Hybrid mergers for spreading risk, cutting costs, creating synergies, or could also be a defense mechanism to survive against competition•Growth for global reach•Survival by developing a critical mass•Acquiring cash, deferred taxes, or even excess debt capacity•Acquire a bigger asset base to leverage borrowing•Top line growth objective, financial gains and personal power•Adding a core competency to provide more combinations of products and services•To acquire talent, knowledge, and technology (lately, this is becoming a very important reason) The main objectives for mergers: •Degree of involvement of HR (directors) of acquired company in negotiation process.•Cultural Differences •Conflict of Management styles•Diversity in
Discuss the implication of Yummy’s business plans for its human resource plan for next year?
If the acquisition is implemented, how will HR go about ensuring that “merger” occurs with the least organizational disruptions?
The problemA merger ocPre-acquisition processcurs when one company is combined with and totally absorbs another. Operations, facilities, and functions are rationalized and combined for maximum efficiency. The cultural beliefs, norms, and infrastructure of the acquired organization generally change to the acquiring culture for the integration purposes. The acquired organization effectively loses its identity. If the acquisition is implemented, how will HR go about ensuring that “merger” occurs with the least organizational disruptions?
QUESTION 4 What HR-related issues will Mrs. De La Cruz bring to the strategic planning sessions?
QUESTION 1 The Problem Despite a well planned strategy acquisitions have found to be a failure, and the main reason attributed for the failure is the challenges faced in managing people related issues.
QUESTION 2 QUESTION 3
•Horizontal mergers for market dominance or economies of scale•Vertical mergers for efficient channel control•Hybrid mergers for spreading risk, cutting costs, creating synergies, or could also be a defense mechanism to survive against competition•Growth for global reach•Survival by developing a critical mass•Acquiring cash, deferred taxes, or even excess debt capacity•Acquire a bigger asset base to leverage borrowing•Top line growth objective, financial gains and personal power•Adding a core competency to provide more combinations of products and services•To acquire talent, knowledge, and technology (lately, this is becoming a very important reason) The main objectives for mergers: •Degree of involvement of HR (directors) of acquired company in negotiation process.•Cultural Differences •Conflict of Management styles•Diversity in