Role of Mergers & Acquisitions in Organizational Change Research Paper

Role of Mergers & Acquisitions in Organizational Change - Research Paper Example It happens when an organization wants to enter into a new market or wants to lower the cost of production. Other organizations use this method to increase their market share in the market. This report demonstrates the crucial role played by the merger and acquisition in organizational change. Thesis Mergers and acquisitions play a vital role in the organizational change. This role can be developed if it is highlighted and addressed adequately. Introduction Definition Organizational change is the process by which a company or organization goes through change with an aim of remaining more relevant and achieve its goals within the right time, (Cassiman & Colombo, 2006). This change occurs when there is a change in business strategy, when an organization wants to rebrand or when there is a major change in parts the entire organization. These changes are important for an organization to remain relevant in the dynamic market field. The process of organizational change involves making bold changes and it may also involve expansion of the organization. Mergers and acquisitions play a major role in the process of organizational change. The issue of acquisition and mergers involves having a corporate strategy in matter to do with buying, selling and division of companies, (DePamphilis, 2008). This involves companies with similar entities coming together in the process of merger and agreeing on terms and condition of operation. A merger is slightly different from an acquisition. Takeover Acquisition is also known as take over. This process involves buying of the entire business entity. This may end up expanding the company that has bought the business entity, (Finkelstein 2010). Nature of acquisitions The term consolidation refers to a union of two or more companies to form a new joint business initiative. This means that none of the tow companies can survive independent of each other. It is also know n as merger of companies. We have both private and public acquisitions. The key point here is that acquisition and merger are done as part of the company’s strategy either in venturing into a new market of remaining relevant and expansion of the organization. If the target company has been listed in the stock exchange then it’s not a public acquisition acquisitions can either be public or private, (Mikael & Jani, 2011). Acquisitions can also be classified as hostile or friendly. The process of acquisition is very detailed and involves many steps. This is why studies show that 50 per cent of the acquisitions done are successful while others are not. In other words, acquisitions are difficult to achieve. The acquisition is perceived either as friendly or hostile depending on how the idea of buying the target company is communicated. In friendly cases, the negotiations are done in private that every deal is based on mutual agreement with the companies involved. In case of the hostile acquisitions the target company’s boards of directo rs are caught unawares. The company is sold without their knowledge, (Mikael & Jani, 2011). Hostile acquisitions can end up being friendly acquisitions with time. This happens due to improved terms of agreement after the procurement process. When we talk about acquisition, we are referring to a large company or organization procuring a small company. There are instances where the smaller company acquires the control of

Business & Society case Study Essay Example | Topics and Well Written Essays - 500 words

Business & Society case Study - Essay Example Market stakeholders aid Disney Corporation in delivering its services to the community, notably the provision of job opportunities to the surrounding communities, though commuting from the less expensive surrounding community since the area is considered to being a business location and not for settlement. The first key market stakeholders are the creditors who play an important role in the day to day running of the business in most corporations as they provide the unavailable funds that companies and businesses require to invest in as the aim to boosts its business activities (James E. Post 6). Disneyland is a business location in which their major business is the tourist and resort centre which is a booming industry. The creditors of the companies involved in the tourism and resort business are the major stakeholders because they have lent their money expecting the returns of capital principal as well as the interest (James E. Post 15). The second key stakeholder in this case study are the employees who contribute the relevant knowledge and experience as the workforce to the company in which, in return, they get wages benefits, salaries and the chance for personal realization and satisfaction. The third suppliers who are the holding key backbone on the going concern of the tourist and resort business in Disneyland, the suppliers supply services, energy, raw materials, other various inputs in return for payments. The final non-market stakeholders are the wholesalers, distributors and the retailers who are the main chain of the distribution in the whole process thus aiding its movement to the final consumers (Post et al. 25). In this case, the non-market stakeholders are the surrounding society, the general public, media, non-governmental organizations and the business support groups. All of these non-market stakeholders are generally not affected by the economic exchange of the company. It is important to note that the decisions of