Analysis of Asset Consolidation as an Integral Part of Organizations' Activities a standard for businesses aiming for growth. Various companies use mergers and acquisitions to form strategic alliances. In the majority of cases, the underlying reason is to ensure the long-term sustainable achievement of “rapid and profitable growth” for the business. In today's competitive world, it is important for various businesses to keep pace with a rapidly growing diverse global market and increased competition. In order to gain a competitive advantage, it is essential to form alliances. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayAccording to Megginson and Smart “Mergers and acquisitions are major events in corporate finance that, when executed effectively and with the right motivations, can help managers realize their ultimate goal is to maximize shareholder wealth. “A merger is the combination of two or more companies into one company. This is achieved when a company or business purchases the property or other form of assets from another company. The result of this action is the formation of a business structure. This new corporate structure retains its original identity. An acquisition is a little different from a merger in that it involves the "dissolving" of many issues and the formation of an entirely new company. Reasons for Mergers There are many reasons for mergers and acquisitions, such as business growth, achieving economies of scale, for power or better management, stability and to increase market share and eliminate competition. At the heart of mergers and acquisitions is the sole objective of maximizing shareholder wealth, regardless of the size of the company. This wealth maximization must be done both in the daily management of the company and in the long term through their tactical decisions. A well-executed acquisition or merger will increase profits earned through increased sales revenue and reduced costs. It can also place the company in a position of strategic advantage over its competitors, allowing it to add value by using the opportunity of this advantage to increase profitability. Role of Managers in Successful Mergers/Acquisitions The scope of a manager's organizational behavior goes beyond strategizing for the operation of the organization, and can extend further during and after acquisitions to extend benefits financial. The manager has an important responsibility to develop a leadership plan while keeping in mind the human elements that arise from such mergers. To create this balanced balance, the manager must use organizational behavior transition strategies to maintain the vision and goals of the organization while motivating and achieving better individual performance. Arkin, (2003) shows that involving human resources professionals from the early stages of a merger or merger. acquisition is crucial to helping employees adapt to change. Kitching (1967) emphasizes the importance of installing "change managers" to manage critical areas requiring change to accomplish the tasks ofthe acquisition. Kitching highlights the importance of control change management efforts in the post-acquisition period. Recently, M&A research considers not only control-based value creation, but also a variety of integration processes through which these synergistic benefits can be realized (Hitt, Harrison, & Ireland, 2001). Gadiesh et al (2002) identified a range of leadership characteristics that could be associated with successful M&A outcomes. These characteristics are decisiveness (closing the deal), serving as a symbol and creating momentum (crusade for the new entity), fostering a sense of focus (establishing and communicating the strategic vision), motivating team members. organization (encouraging the troops) and providing key cultural and operational advice (driving change through integration). Managerial ability must be a non-specialized propensity, and the managers of the acquiring company must be men far more talented than those of the companies they absorb. In the context of mergers and acquisitions, managers create “other managers” (Galpin and Herndon 2000). as Clemente and Greenspan (1998) write, “these leaders concretize “the mutual responsibility of all employees, but alert and bind them to the responsibility of each. . .this will create a social conscience."Case of the acquisition of Rover by BMWIn the case of BMW (Gould, B 1998) the acquisition of Rover for 800 million highlights the importance of managers and effective management of human resources in mergers and acquisitions BMW was able to easily gain entry into a new market segment without compromising its premium and niche market segment through the acquisition of Rover The main reason why BMW purchased Rover and. Land Rover is that BMW doesn't have an SUV, the that better, needed help and BAE was doing nothing with it BMW thought about acquiring Rover, because it was too small to survive on its own a more fundamental goal was improving shareholder wealth through acquisitions. to access or create a sustainable competitive advantage for the acquirer. Such an advantage had to come from economies of scale, market power or access to unique assets, for example BMW through the acquisition of Rover. able to offer a range of cars in each category. Successful acquisitions differ from failed acquisitions on a number of dimensions, ranging from pre-acquisition planning to post-acquisition integration management. Haspeslagh and Jeminson (1991) contrast two perspectives of acquisition decision making, the rationalist and the organizational process. The rationalist view relies on a rigorous economic, strategic and financial assessment of the acquisition proposal and estimates the potential value creation based on such an assessment. In this case, the objective of the acquisitions was to create competitive advantages, strengthen their positions in the markets and achieve strategic value creation. BMW/Rover are examples of unsuccessful acquisitions. Despite ambitious plans for Rover's future, Rover was unable to turn a profit until the year 2000 due to a £500 million per year investment program in the UK. BMW experienced financial difficulties after acquiring Rover. Robert Hellar writes: "BMW invested 0.8 billion in a company that, at last report, was losing 000,000 a year." “Reasons for failure The success of the acquisition depends.

Essay / Analysis of Asset Consolidation as an Integral Part of Organizations' Activities a standard for businesses aiming for growth. Various companies use mergers and acquisitions to form strategic alliances. In the majority of cases, the underlying reason is to ensure the long-term sustainable achievement of “rapid and profitable growth” for the business. In today's competitive world, it is important for various businesses to keep pace with a rapidly growing diverse global market and increased competition. In order to gain a competitive advantage, it is essential to form alliances. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayAccording to Megginson and Smart “Mergers and acquisitions are major events in corporate finance that, when executed effectively and with the right motivations, can help managers realize their ultimate goal is to maximize shareholder wealth. “A merger is the combination of two or more companies into one company. This is achieved when a company or business purchases the property or other form of assets from another company. The result of this action is the formation of a business structure. This new corporate structure retains its original identity. An acquisition is a little different from a merger in that it involves the "dissolving" of many issues and the formation of an entirely new company. Reasons for Mergers There are many reasons for mergers and acquisitions, such as business growth, achieving economies of scale, for power or better management, stability and to increase market share and eliminate competition. At the heart of mergers and acquisitions is the sole objective of maximizing shareholder wealth, regardless of the size of the company. This wealth maximization must be done both in the daily management of the company and in the long term through their tactical decisions. A well-executed acquisition or merger will increase profits earned through increased sales revenue and reduced costs. It can also place the company in a position of strategic advantage over its competitors, allowing it to add value by using the opportunity of this advantage to increase profitability. Role of Managers in Successful Mergers/Acquisitions The scope of a manager's organizational behavior goes beyond strategizing for the operation of the organization, and can extend further during and after acquisitions to extend benefits financial. The manager has an important responsibility to develop a leadership plan while keeping in mind the human elements that arise from such mergers. To create this balanced balance, the manager must use organizational behavior transition strategies to maintain the vision and goals of the organization while motivating and achieving better individual performance. Arkin, (2003) shows that involving human resources professionals from the early stages of a merger or merger. acquisition is crucial to helping employees adapt to change. Kitching (1967) emphasizes the importance of installing "change managers" to manage critical areas requiring change to accomplish the tasks ofthe acquisition. Kitching highlights the importance of control change management efforts in the post-acquisition period. Recently, M&A research considers not only control-based value creation, but also a variety of integration processes through which these synergistic benefits can be realized (Hitt, Harrison, & Ireland, 2001). Gadiesh et al (2002) identified a range of leadership characteristics that could be associated with successful M&A outcomes. These characteristics are decisiveness (closing the deal), serving as a symbol and creating momentum (crusade for the new entity), fostering a sense of focus (establishing and communicating the strategic vision), motivating team members. organization (encouraging the troops) and providing key cultural and operational advice (driving change through integration). Managerial ability must be a non-specialized propensity, and the managers of the acquiring company must be men far more talented than those of the companies they absorb. In the context of mergers and acquisitions, managers create “other managers” (Galpin and Herndon 2000). as Clemente and Greenspan (1998) write, “these leaders concretize “the mutual responsibility of all employees, but alert and bind them to the responsibility of each. . .this will create a social conscience."Case of the acquisition of Rover by BMWIn the case of BMW (Gould, B 1998) the acquisition of Rover for 800 million highlights the importance of managers and effective management of human resources in mergers and acquisitions BMW was able to easily gain entry into a new market segment without compromising its premium and niche market segment through the acquisition of Rover The main reason why BMW purchased Rover and. Land Rover is that BMW doesn't have an SUV, the that better, needed help and BAE was doing nothing with it BMW thought about acquiring Rover, because it was too small to survive on its own a more fundamental goal was improving shareholder wealth through acquisitions. to access or create a sustainable competitive advantage for the acquirer. Such an advantage had to come from economies of scale, market power or access to unique assets, for example BMW through the acquisition of Rover. able to offer a range of cars in each category. Successful acquisitions differ from failed acquisitions on a number of dimensions, ranging from pre-acquisition planning to post-acquisition integration management. Haspeslagh and Jeminson (1991) contrast two perspectives of acquisition decision making, the rationalist and the organizational process. The rationalist view relies on a rigorous economic, strategic and financial assessment of the acquisition proposal and estimates the potential value creation based on such an assessment. In this case, the objective of the acquisitions was to create competitive advantages, strengthen their positions in the markets and achieve strategic value creation. BMW/Rover are examples of unsuccessful acquisitions. Despite ambitious plans for Rover's future, Rover was unable to turn a profit until the year 2000 due to a £500 million per year investment program in the UK. BMW experienced financial difficulties after acquiring Rover. Robert Hellar writes: "BMW invested 0.8 billion in a company that, at last report, was losing 000,000 a year." “Reasons for failure The success of the acquisition depends.

Navigation

« Prev 1 2 3 4 5 Next »

Get In Touch