Assignment on Mergers and Acquisitions
Strategic Human Resource Planning
September 21, 2014
Mergers and Acquisitions
A merger is the combination of two different companies that are formed to create a new company. A merger can be friendly and settled quickly but on a hostile takeover a merger can start to be extreme. The management starts pushing the "white pills" as they call it which is the key players to buy shares of the company to reach 50% of the company. (Belcourt, McBey, Hong, & Yap, 2013) There is also the "white knights" which are buyers that are more willing to accept the merging company. An acquisition is where a company buys another company, but no new company is created. (Belcourt, McBey, Hong, & Yap, 2013) Through this research, there will be information on what makes a merger or acquisition successful and not successful. (Belcourt, McBey, Hong, & Yap, 2013) There will be a discussion on some of the issues that a U.S.-based company needs to consider when thinking of merging with an international company. We need to take in consideration on where and how culture fits the merger and what effect a merger and acquisition have on employees. There will also be a discussion on the impact that the merger and acquisition on HR planning, selection, compensation, performance appraisal, training and development, and labor relations. (Belcourt, McBey, Hong, & Yap, 2013) Merger or Acquisition Success or Not
There are many reasons for failures in a merger or acquisition, and it is r elated to the fact that it is easy to buy but hard to perform. (Weber, Oberg, & Tarba, 2014) As in starting any new business, a merger or acquisition are no different if there is a lack of planning, there will be a failure. There could be synergies or a difference in the management, organizational, or international culture of the companies. When there are negotiation mistakes, it creates difficulties in implementing the strategy after the agreements signed. (Weber, Oberg, & Tarba, 2014) If a company would use the strategic management approach for success of a merger or acquisition it would include the amount of sales, what is the increase in the market share, competitive abilities improvements, and any profitability changes after the merger or acquisition. This is determining the success or failure in the merger or acquisition with the strategic fit with the companies. (Weber, Oberg, & Tarba, 2014) Issues on Mergers with International Company
When a company is looking to for mergers in an international company, they need to make sure that their company is financially stable for this new adventure beyond its borders. (Wignall, 2012) Some of the factors can consist of culture, currency, economy, government, labor, language, marketing, and transport. (Heil, 2011)When it comes to culture, it can be either homogeneous or heterogeneous. Cultural Homogeneous is a society of people that are of the same race. (Editors of Ask, 2014) “Cultural Heterogeneity is how relatively dissimilar one group of people are from another group's beliefs and ideas.” (Editors of Answer, 2014) Currency issues in global conditions can vary especially with the exchange rates. (Heil, 2011) In domestic conditions with the economy, we have information because our main focus for our company is domestic but what happens when we go internationally with a merger? This could change the unpredictability of the company and vary with different countries. If we are in the United States, we have the availability to skilled workers but in a different country this could become an issue to find skilled workers. There are also the communication barriers with different languages and even dialects. Some companies may not even consider that media and transport could become potential problems. The media have more restrictions in different countries, and even transport could have more...
References: Belcourt, M., McBey, K., Hong, Y., & Yap, M. (2013). Strategic Human Resources Planning Fifth Edition. Toronto, Ontario: Nelson Education.
Editors of Answer. (2014). What is cultural heterogeneity? Retrieved September 21, 2014, from Answer.com: http://www.answers.com/Q/What_is_cultural_heterogeneity
Editors of Ask. (2014). What Is a Homogeneous Culture? Retrieved September 21, 2014, from Ask.com: http://www.ask.com/question/what-is-a-homogeneous-culture
Heil, C. (2011, September 1). Strategy in the Global. Retrieved September 21, 2014, from Reference for Business: http://www.referenceforbusiness.com/management/Str-Ti/Strategy-in-the-Global-Environment.html
Kansala, S., & Chandani, A. (2014). Effective Management of Change During Merger and Acquisition. Procedia Economics and Finance, Vol. 11, 208-217.
Schuler, R. S., & Jackson, S. E. (2014). HR issues, activities and responsibilities in mergers and acquisitions. Series on Human Resource Management Working Paper No. 3, 1-25.
Weber, Y., Oberg, C., & Tarba, S. (2014, January 16). The M&A Paradox: Factors of Success and Failure in Mergers and Acquisitions. Retrieved September 20, 2014, from FT Press Financial Times: http://www.ftpress.com/articles/article.aspx?p=2164982
Wignall, D. (2012, November 1). Ten Things to Consider When Building a Global Practice. Retrieved September 19, 2014, from Design Intelligence: http://www.di.net/articles/ten-things-to-consider-when-building-a-global-practice/
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