Research Proposal Title: Cultural Issues (Change Management) in Mergers
Research Proposal
Title: Cultural Issues (Change Management) in Mergers
ICON College of Technology Management
BTEC Edexcel Level 7 Advanced Professional Diploma in Management Studies
(DMS) (Semester 1)
Prepared by:
Rahad Air
ID: 5957
Module Leader: Dr. Paul Howe
Course: Research Method
February 2010
Introduction:
Today’s fast growing globalize economies and competition have forced industries to fine ways to survive in today’s perplexed business environment and generate profit for their shareholders. There are many methods to develop the organizations one of them is Mergers and Acquisitions. This is where strategies for success are developed by acquiring new companies or by the merger of two (P.Gaughan, 2000). Mergers and Acquisitions are amongst the most important phenomena of modern economies (Kwoka, J.E. Jr 2002).
Globally number of completed acquisitions tripled between 1991 and 2001. But the world wide announced deals declined rapidly after 2000 falling by nearly 30% in 2002, North America particularly showed its lowest level of activity since 1994(Johnson et al 2005). Mergers and acquisitions occur frequently in organizations, but rarely achieve their desired financial and strategic objectives. There is a need to review the human, organizational and cultural dynamics affecting mergers and acquisitions, and reports recent trends influencing interventions to enhance merger and acquisition success. Managers need to describe consulting approaches and methods required to minimize employee stress, management crisis and culture clash and to enhance the desired financial and strategic results of mergers and acquisitions (Mitchell lee marks 1997).
AOL and Time Warner:
America Online (AOL), founded by Steve Case, began life as a proprietary online service and became the biggest provider of home internet connections; in 2000 it bought a media conglomerate, Time Warner. The move, which needed almost a year to be approved by the FCC,
Title: Cultural Issues (Change Management) in Mergers
ICON College of Technology Management
BTEC Edexcel Level 7 Advanced Professional Diploma in Management Studies
(DMS) (Semester 1)
Prepared by:
Rahad Air
ID: 5957
Module Leader: Dr. Paul Howe
Course: Research Method
February 2010
Introduction:
Today’s fast growing globalize economies and competition have forced industries to fine ways to survive in today’s perplexed business environment and generate profit for their shareholders. There are many methods to develop the organizations one of them is Mergers and Acquisitions. This is where strategies for success are developed by acquiring new companies or by the merger of two (P.Gaughan, 2000). Mergers and Acquisitions are amongst the most important phenomena of modern economies (Kwoka, J.E. Jr 2002).
Globally number of completed acquisitions tripled between 1991 and 2001. But the world wide announced deals declined rapidly after 2000 falling by nearly 30% in 2002, North America particularly showed its lowest level of activity since 1994(Johnson et al 2005). Mergers and acquisitions occur frequently in organizations, but rarely achieve their desired financial and strategic objectives. There is a need to review the human, organizational and cultural dynamics affecting mergers and acquisitions, and reports recent trends influencing interventions to enhance merger and acquisition success. Managers need to describe consulting approaches and methods required to minimize employee stress, management crisis and culture clash and to enhance the desired financial and strategic results of mergers and acquisitions (Mitchell lee marks 1997).
AOL and Time Warner:
America Online (AOL), founded by Steve Case, began life as a proprietary online service and became the biggest provider of home internet connections; in 2000 it bought a media conglomerate, Time Warner. The move, which needed almost a year to be approved by the FCC,
References: Ansoff, I.h. (1990), Implanting Strategic Management, Prentice Hall International, Ltd. London. Beer, M. and Eisenstat, R.A. (1996) “Developing an organization capable of implementing strategy and learning”, Human Relations, 49 (5), pp. 597-617 Chris Hart (2005), doing your masters dissertation, sage publications, pp Faulkner, D., Child, J. and Pitkethly, R. (2003). ‘Organizational change processes in international acquisitions’. Advances in Mergers and Acquisitions, 2, 59-80. Hutt, M. D., Walker, B.A. and Frankwick, G.L. (1995) ' 'Hurdle the Cross-Functional Barriers to Strategic Change ' ', Sloan Management Review, 36 (3), pp. 22-30. Johnson, Scholes and Whittington, (2005), exploring corporate strategy Ed 7th, prentice hall, pp. 348 Kruger, W Kwoka, J.E. Jr (2002), Mergers and productivity journal of economic literature, Vol XL No. June, pp. 540-1 Lawrence, P.R Lorenzo, J. D. (20000 “Barrera’s en los procesos de cambio en las organizaciones: studio de un caso”, Paper presented at the X Congreso Nacional de ACEDE, Oviedo (Spain).