The concept of merger and acquisition is very important in the corporate world today since the problems with the economy and expansion of businesses on the increase considering that the Marketplace has become economically unpredictable. There are efforts by business managers to try and find ways that can facilitate better outcome in tough economic times. This has included mergers and acquisition of businesses as opposed to starting new ventures
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Purpose of Study
The purpose of the study will be to investigate the significance and impact of the merger between two firms that are diversified in terms of products they deal in. This is very important because many firms have come to join resources in the name of forming a merger with great hopes for success but then suffer a set back of incompatibility (Meyer & Altenborg, 2008, p. 508). Some are usually forced to liquidate the property acquired.
Mergers and acquisition in some cases can be very problematic especially when the merging firms cannot attain harmony. This is the problem of incompatibility and it has to be resolved before businesses suffer the consequences of failing to investigate success achievability of the objective (Meyer & Altenborg, 2008, p. 509).
Merging companies often face a very huge setback of asset incompatibility due to failed planning. Business managers are therefore working very hard to try and solve this problem by providing information on effective management that will assist in strategic alignment of resources (Meyer & Altenborg, 2008, p. 508).
This section is very important in providing an extensive understanding of the topic of understanding. Basically, it will start by defining the principles of mergers in relation to the different background of businesses. This section then will discuss a variety of facets that surrounds mergers from different perspectives.
Managers are the root cause of business successes in the corporate world of merger scenarios in the world today. Nonetheless implementing the correct strategy is indispensable when addressing risk management and attaining the synergies that are wanted (Huang & Kleiner, 2004, p. 53). The strategic reorganisation, merging and de-merging have been very common in many businesses. The success of a business merger is motivated in part by the model the merging businesses adopted and the strategic configuration of the available resources immediately after the crucial reorganization (Huang & Kleiner, 2004, p. 53).
The research will involve both qualitative and quantitative methods of study.
The sample population will be managers and workers from the two large corporations that have merged before like Telia and Telenor companies. Structured and semi-structured questionnaires will be used to collect information which will subsequently be analysed. Scaled questions that utilize Yes/No response of the likert design questions were expansively used on the questioners as they are very easy to understand and analyze. Reliability of the methods was assessed and reported (Huang & Kleiner, 2004, p. 53).
These were drawn from the study findings analysed, to sum up, the findings. Business managers will continue finding solutions to the problem. Addressing problems that come with mergers and acquisition is of critical importance as many businesses are merging in order to increase their working capital, increased product diversity, increased work skills and experience and to increased market share. All these attributes go towards increasing survival chances of business. As a result managing incompatibility problems is very important.
Huang, C.T & Kleiner, B.H. 2004, ‘New Developments Concerning Managing Mergers And Acquisitions,’ Management Research News, Vol. 27, Issue 5, Pp 54 – 62, Geneva, Inderscience Publishers. Web.
Meyer, C.B & Altenborg, E. 2008, ‘Incompatible Strategies In International Mergers: The Failed Merger Between Telia And Telenor’, Journal Of International Business Studies. Vol. 39 Issue 1, Pp 508–525 New York, Palgrave. Web.