The causes and effects of mergers and acquisitions

The causes and effects of mergers and acquisitions It is still the start of the 21st century and as per the predictions, the world is moving at a brisk speed. The people who catches up with the world right now will be able to survive others will not be able to follow them. Same is the case with the companies of the 21st century. Companies today need to be fast growing, efficient, profitable, flexible, adaptable, and future-ready and have a dominant market position. Without these qualities, firms believe that it is virtually impossible to be competitive in todays global economy. Academics and other observers advance value-maximization,[6] managerial ego, mimicry, the need to reduce uncertainty and defensive considerations (acquire to avoid being acquired; ensure that growth keeps up with that of competitors, etc.) and high levels of corporate reserves and share valuations among the motives behind consolidation in financial services. Supporters of MAs allege that they facilitate synergies between merged organizations, generate efficiency improvements and increase competitiveness. Indeed, they hold that mergers, by increasing economies of scale and spreading costs over a larger customer base, enable financial operators to provide services at lower prices. Demonstrating that MAs improve efficiency is thus central to making the case for the consumer benefits of mergers and in assessing their potential impact on consumers.[7] If mergers improve efficiency, then larger, combined firms may be expected to pass some savings on to consumers through lower prices or improved service. In some industries such as insurance or banking, firms may move into new markets. In others such as pharmaceuticals or software technology, firms may work with smaller firms that have developed or are developing new products that they can manufacture and/or distribute more efficiently, while other firms focus on their own internal growth, leadership and development. Regardless of industry, however, it appears that it has become all but impossible in our global environment for firms to compete with others without growing and expanding through deals that result in mergers or acquisitions. Mergers and acquisitions are increasingly being used by firms to strengthen and maintain their position in the market place. They are seen by many as a relatively fast and efficient way to expand into new markets and incorporate new technologies. Yet their success is by no means assured. To the contrary, a majority fall short of their stated goals and objectives. Mergers Acquisitions an opportunity to improve employee relations or pull off some krafty moves? Mergers and Acquisitions (MA) have been a current topic within HR and Employment Law for a long time now but the last ten years has seen far greater opportunities opening up for companies (including private equity funds etc) to make that transforming acquisition or merger with a rival which will deliver major financial benefits and enhance shareholder value. Of course it is a well known fact that more than 60% of mergers/acquisitions fail to achieve their planned objectives. One major contributory factor in this has been the failure to pay sufficient attention to the people aspect of this type of change. Emotions can and do run high during protracted MA battles. Obviously the financial, legal and commercial issues will take precedence over the people issues. However compelling the financial or commercial case, a takeover will not succeed if key individuals are not motivated to make the new arrangements work. Those key individuals can be at any level in the business and it is not always the case that there are many other qualified and more motivated people just waiting to take their places. Rectifying these problems, although possible, can be costly. Kraft may rue the day when they failed to deliver on their commitment and dismissed many knowledgeable and experienced staff at Cadburys near Keynsham.   Neglecting the human factor is a frequent cause of failure Cultural and symbolic elements in MAs are typically framed in terms of the distinction between the merging firms, thus leading to an us versus them dualism. The creation of formal, internal communications mechanisms as early as possible in the process is necessary to limit the anxiety that will otherwise be fuelled by rumour, the grapevine, or even outside news reports. Employees complain that their first knowledge that their employer is involved in a merger or acquisition is often from the morning news before setting off for work. According to a Hewitt Associates executive, the fact that the human factor is taken into account in only 5 per cent of MAs explains why more than half of them in all sectors fail. Teams are usually put together to oversee merger and acquisition operations. These teams almost always comprise specialists in legal and financial issues as well as experts in strategy but rarely do they include human resource directors. One possible explanation is the fact that speed is generally considered of capital importance for success. While the integration phase of merging enterprises may cover between three to five years, the first 100 days after the announcement of the transaction are the most crucial for success or failure. It has become common practice to prepare and communicate to staff and shareholders a programme of integration activities to cover this period, when the feelings of fear, apathy, demotivation and the classical victor and vanquished syndromes are at their highest. Since a majori ty of mergers end up with the elimination of overlapping functions and positions, the first 100 days are likely to be those when staff are most uncertain about jobs, career prospects and the disappearance of their own corporate culture. To reduce the possibilities of failure in MAs, some management experts have recommended that human capital be placed at the centre of the process, or at least be given equal attention to that assigned to economic and financial considerations. According to this school of thought, such a redirection would enable acquirers to select the most compatible acquisition targets from a human resource perspective and make integration that much easier. Frank communication on a daily basis between management and staff helps to dispel some of the uncertainties of MAs and avoid organizational drift. Employees should be informed in good time about the manner in which redundancies, if there are to be any, will be decided and about the role of their trade unions or representatives in the process. It is also important for staff from the acquired organization to be assured that the rights and entitlements they had with their previous employer are to be respected; otherwise there is a high probability of conflict. Merger uncertainties are also frequently blamed for the loss of talent from target companies, which can destroy the very basis for the merger. The failed merger plans between the Deutsche Bank and Dresdner Bank in April 2000 demonstrate how staff resistance can undermine corporate strategies and management wishes. Integration of teams from the respective investment banks of the two parent banks posed a risk to the balance already achieved between staff in Deutsche Morgan Grenfell and the previously acquired Bankers Trust. MAs imply immediate and direct job losses A study on the efficiency effects of bank mergers in the United States,[49] which summarizes nine case studies, reports that all nine mergers resulted in significant cost cutting in line with pre-merger projections, although only four of the mergers were clearly successful in improving cost efficiency. As for employment, the largest volume of cost reductions was generally associated with staff reductions and data processing systems and operations. Payroll reductions often accounted for over 50  per cent of the total cost reduction and in at least one case the reduction in staff costs accounted for nearly two-thirds of the total. In all cases, the savings achieved were of the order of 30 to 40 per cent of the non-interest expenses of the target. All of the merged firms indicated that the actual savings either met or exceeded expectations. Most of the firms projected that the cost savings would be fully achieved within three years after the merger, with the majority of the savings be ing achieved after two years. Managing downsizing related   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  to MA restructuring While MAs are driven largely by financial considerations, their success vitally depends on the motivation of retained workers to contribute to the achievement of merger objectives. The high proportion of failed MAs may not be unrelated to the manner in which staff are often relegated to cost variables rather than being made active partners in the change process. Social plans, guarantees against forced departures and the involvement of staff in MA-related decision-making are critical motivating factors. The study referred to in Chapter 1[69] concluded that the failure of the overwhelming majority of MAs resulted from concentration on hard legal and finance issues to the detriment of the soft people issues in merger planning and implementation. Poor communications with employees appeared to pose a greater risk than that with shareholders, suppliers or customers. The study found that success was linked to a holistic approach when the soft people and cultural issues were an integral part of the focus on financial performance. Of the companies involved in the survey, just nine (less than 10 per cent of respondents) addressed all the soft keys, and each was successful. The study stresses the fact that once value was lost, it was seldom recovered. Even though possibly the most difficult to implement effectively, headcount reduction was the area in which most companies reported achieving their targets. Loss of staff an inevitable result of MAs often included the very individuals the acquirer needed and intended to keep to succeed. MA value extraction was impossible without the enthusiastic cooperation of employees. MAs, remuneration and other compensation issues Two conflicting aims appear to characterize current practices in financial sector remuneration: the need to reduce labour costs within a context of increasing competition and decreasing profitability and the necessity to compensate and adequately reward employee performance and commitment within an environment of continuous and challenging change.[75] Recent trends in compensation policies are moving towards more contingent, individualized and explicitly performance-based systems, while seeking to retain workers loyalty and commitment to organizational goals. This might explain why changes in compensation have tended to be less dramatic than expected compared with both current rhetoric and experience in other industries. The main exception to the industry trend is the United States, where in the absence of a collective wage agreement or any kind of coordination between banks in wage setting, wide differences in compensation levels both between and within financial institutions have a lways been the rule. Sales-based bonuses, either individual-based (as for lenders in wholesale operations) or distributed via managers to branch offices, are the most widespread example of incentives, while commissions have become common for crucial jobs, such as investment advisors.[76 MAs and working time The link between financial sector concentration and patterns in regular working time is difficult to identify because working-time agreements depend upon the national context and are not limited to the sector under consideration. Banks adoption of the retailing model is encouraging them to adjust their hours to customer requirements, extending opening hours on at least one day a week and even opening some branches on traditionally closed days such as Saturdays a trend which has aroused strong trade union reactions in a number of countries. It goes without saying that MAs can provide an opportunity for management to opt for more customer-friendly working hours. However, the rapid development of Internet-based direct banking and ATMs often accelerating and accelerated by MAs has the opposite effect of reducing the need for longer opening hours. Given that successful management of the restructuring process is vital for achieving organizational objectives, managers need to be aware that downsizing is more than a reduction in head count and work reorganization. Terminations destroy the firms social fabric as structures are altered, relationships disrupted and work patterns and communication flows modified, making it more difficult for retained staff to do their work. These structural problems may inhibit performance so that staff need help to cultivate new ties, although insufficient attention is usually given to the intricate relationship between the organizations formal and informal structures. In addition, survivors who are already subject to survivors syndrome find they have to work harder to cover staffing shortfalls, with the consequence that increased workloads feed the stress related to job insecurity, undermining the very efficiency goals that motivated the merger or acquisition. Job insecurity may make employees feel pressured into agreeing to put extra effort into their jobs to demonstrate organizational loyalty; but such working conditions are neither sustainable nor conducive to the achievement of corporate objectives. Financial sector restructuring around the world has led to a high rate of call centre growth. Research by Deloitte Touche has found, for instance, that Australia has 1,400 call centres and help-desks employing 50,000 people and annual sales of $2 billion. Staff turnover averages 18 per cent a year mainly due to stress, as confirmed by the fact that 80 per cent of workers are requesting stress management training assistance. The annual cost to the industry from the high turnover has been estimated at around $100 million. MAs generate high levels of staff anxiety and stress as their working world is turned upside down, their jobs come under threat and their career prospects and professional competence are called into question. Collective defensive mechanisms, especially in hostile takeovers involving previously keen competitors, may lead to a victor-vanquished syndrome inducing behaviour inimical to the smooth implementation of changes for successful integration. Employees from each company are aware that there are many duplicated positions to be eliminated and the struggle to survive will be fierce. Trade unions may themselves be at loggerheads as the merger may involve companies recognizing different negotiating partners. Not surprisingly, it is much easier for managers to convince shareholders about the merits of proposed mergers than it is to persuade their own staff.

Non-Conformism Is the Refusal to Conform Essay

Non-conformism is the refusal to conform to common standards, conventions, rules, customs, traditions, norms or laws. The bravest act of non-conformism I’ve seen would have to be, Malcolm X. During his life, Malcolm went from being a drug dealer and burglar to one of the most prominent Black Nationalist leaders in the United States; he was considered by some as a martyr of Islam and a champion of equality. As a militant leader, Malcolm X advocated black pride, economic self-reliance, and identity politics. He ultimately rose to become a world-renowned African American/Pan-Africanist and human rights activist. Throughout his life Malcolm X went through many transformations and through them all he still did not conform to what society expected of him. Malcolm (Little) X preached what he believed about racism, discrimination, and segregation. He went through many changes in his fight for equality. The three transformations that really changed the way Malcolm thought and preached where his transformation in prison, his transformation into the Islamic religion (following Elijah Muhammad), and the biggest transformation of all, his pilgrimage to Mecca. Malcolm had a lot of respect from those who believed in what he was preaching. He was a man who knew what he wanted and was going to change the way things were. Malcolm did not have the odds to make something of himself. He overcame those odds and became one of the most inspiring and important people in the struggle for equality. Every one should learn from the way Malcolm turned his life around for the better and how he made an impact on those around him. Malcolm (Little) X is definitely one of the people who made the biggest impact on the 20th Century. We have come along way since Malcolm’s assassination in the struggle for quality. We still have a ways to go before his final goal is reached.

Andy Warhol’s Dracula Painting Essay

Understanding the artwork of Andy Warhol is something akin to figuring out a Zen riddle. That is, and people will look for something extraordinary when all they need to do is understand the simplicity of what they are viewing. Andy Warhol’s concept of pop art involved taking the very common images in presenting them in such a way that the commonality was elevated. But can you really elevate something that is common? Apparently so; Warhol did this quite effectively in his earlier works. However, in later years, Warhol’s work started to look a little tired. Perhaps the novelty of pop art was wearing off and Warhol’s creativity had stretched thin. There were, however, some interesting pieces of art produced by Warhol in the last decade of his life. This return to inspired creativity is evident in 1981’s painting Dracula  , one of his most underrated works. What was the inspiration for the Dracula  painting? Was it Bram Stoker’s novel? Was it the classic Bela Lougosi interpretation? Was it the popular play passion of  Dracula  that proved very successful at the time? To a degree, they may have all had their influences in prompting Warhol to use Dracula as subject matter. But, do not let be fooled: Warhol was probably very influenced by a film he produced entitled blood for  Dracula  . blood for Dracula  was an odd dark, tragic satire that saw the aging Count travel to the Catholic country of Italy to find virgin blood. Unless he can find such a victim, he will (finally) die of old age. Of course, his search for a virgin proves fruitless and his days are numbered. While the obvious satire of morality is evident, not so evident is the notion that Dracula represents the old world of the aristocracy. Dracula remains the last of the aristocrats having seen the world he previously knew disappearing to the expansion of Marxism. It is this same subtle theme that is also present in the Dracula  painting and that is what makes it so striking. With fangs bared, cape cowl turned upwards, and eyes wide open it would seem that this is a frightening picture of Dracula. Upon close examination, it really isn’t. Yes, in a previous generation the image of Dracula recreated by Warhol would be considered terrifying. However, by 1981, said to image really is – for lack of a better word – corny. Economic woes, foreign policy strife, and social upheaval had driven horror movies to become more violent and more graphic. The classic monsters simply became a casualty of the era. They were no longer frightening. And, as the painting infers, Dracula knows this. If you look closely into the eyes of Dracula (in the painting) you will notice decidedly out of place emotions. The eyes simply do not appear menacing or frightening. Actually, they appear more confused than anything else. They are wide open and â€Å"glassey† and seemingly have a dual expression of shock and boredom. Perhaps Dracula is shocked that he is no longer frightening. Or, perhaps, he is simply bored of his role as King of the Vampires. Either way, this would indicate a character that understands time has passed him by. This is clearly not the Count Dracula of bygone eras. This is a crucial point because it is this â€Å"past him prime† appearance that Warhol apparently wanted to capture. This is interesting since he opts not to elevate a character from pop culture; but, instead, decides to deconstruct one. In a way, there is a melancholy sadness found in Warhol’s Dracula  painting. This would seem to make sense, however, since the true role of pop art is to depict things as we really see them. In 1981, we were no longer looking at Dracula as a character as much as a tired caricature.

Diary Of A Hugger Analysis Essays

Diary Of A Hugger Analysis Essays Diary Of A Hugger Analysis Essay Diary Of A Hugger Analysis Essay Before shooting my documentary, I carried out some research on the typical conventions that they usually use. This was a challenge as each documentary in its own right has set out to create a different effect on its audience, and within that, each audience is different according to the documentary. Despite this, I found that documentaries always create a relationship between themselves and the audience, and make sure that their audience establish an opinion relating to the topic. For my filming coursework I decided to make the first three minutes of a diary style documentary. The main concept was surrounding a Free Hug Campaign and the events leading up to it in the form of a diary, so using a handheld camera was appropriate as it created an authentic and personal feel to the documentary. Although the shots were set up, they had to appear to be spontaneous moments of filming and merely a record of the events that were taking place. The title Diary of a Hugger seemed appropriate and clear, it emphasises the diary style and hugger is quite a colloquial word that adds informality. To add to the diary style of documentary, on certain shots I added text to the bottom left hand corner of the screen stating Day One or Day Two, this is a way of keeping the audience informed of the time scale of filming and also adds to the authenticity. Along with this, I have used white text on a black background when introducing the original project as this gives the appearance as the text being completely factual, and accurate. Each day of filming starts with an establishing shot to set the scene, and this is also a panning shot to show more of the frame for the audience. Usually these establishing shots are before a set of scenes that are filmed within the same place .The shot of the house shows that the area is fairly suburban and standard in a terraced house, so that the campaign is just being done by a normal person and therefore could be done by anyone, this is a way of creating a relationship with the audience. By creating this image, the idea could inspire the audience to do a free hug campaign themselves. When filming the shot of the station, I purposefully did a high angle shot, which gives the impression that something is foreboding or about to happen, and the view of the camera is over looking the event. I thought this would help to build up the tension for the audience, and was used in documentaries such as Touching the Void Within the documentary I have chosen to include two talking head interviews from two people who have different opinions of the free hug campaign. This way the audience get two different views, and it appears to be unbiased. A talking head shot was appropriate for this, as the attention is on the speaker and their opinions can be put across clearly. I found this to be effective in the three-minute documentary Smoking Day Zero, as it was one speaker throughout. Each interview was also filmed within the house which was in the first establishing shot, I thought this would add to the idea of these being normal people in natural surroundings, and not previously set up at all. For example, the second interview is filmed in the kitchen, and the first on a couch. At the beginning of the documentary, I have included some found footage in the form of some photos of the original free hug campaign, and ones that have followed after it to show the large impact that its already had on the world, and the 80 countries its been in. There is a famous video of clips from the original campaign, which is quite well known around the Internet, so by including some intertextuality, the audience may already recognise the campaign and images included. After this there is a MCU stood in front of a brick wall, talking about the effects of the free hug campaign. The brick wall could connote the formality and monotonous ways in which we live, and how the free hug campaign could change this and bring people together. I got the idea of having the first shot by a brick wall from Pink Floyds song Another brick in the wall, where many of the lyrics could be seen as challenging the idea of every one being the same, and living in a society where no one cares anymore. One of the aims of the free hug campaign was to challenge this and show the world that strangers arent that bad. The fade at the end works well as it leaves the results of the campaign to the audiences imagination. Going along with the idea of building tension, I decided to film on a train as the thought of travelling to do the free hugs creates even more anxiety. In addition to this, it is another talking head, speaking about feeling nervous about what is going to happen and this adds to the edgy situation. There were some technical difficulties when filming my documentary, for example when uploading on to the editing program, there was a fault that created lines across each shot, and after trying to overcome this with different cameras, I had to work around it and accept that some shots were partially distorted. As well as this, when filming a computer screen, the screen itself flickers which makes it difficult to see what is being shown. With more advanced equipment I would have been able to concentrate more on lighting, and making sure that each shot was clear and the lighting was directed on to the subject. I would have like to use a microphone as well to aid the narrative. As well as this, if the piece was able to be longer, I would have liked to go on to have the free hug campaign take place, and film the results of it and peoples reactions. Overall the documentary fulfils its purpose, and together with the camera angles and the narrative the effect on the audience is successful. I am happy with the outcome of my documentary, however I would have like to be able to make it longer, with more of an emphasis on the general publics point of views towards such a campaign that involves spontaneous human contact so that the audience can establish more of a relationship with the documentary. I feel that the diary style worked well, and that because of this, there was able to be a personal feel that the audience could identify with.

lord of flies essays

lord of flies essays A running theme in Lord of the Flies is that man is savage at heart, always ultimately reverting back to an evil and primitive nature. The cycle of man's rise to power, or righteousness, and his inevitable fall from grace is an important point that book proves again and again, often comparing man with characters from the Bible to give a more vivid picture of his descent. Lord Of The Flies symbolizes this fall in different manners, ranging from the illustration of the mentality of actual primitive man to the reflections of a corrupt seaman in purgatory. The novel is the story of a group of boys of different backgrounds who are marooned on an unknown island when their plane crashes. As the boys try to organize and formulate a plan to get rescued, they begin to separate and as a result of the dissension a band of savage tribal hunters is formed. Eventually the "stranded boys in Lord of the Flies almost entirely shake off civilized behavior: (Riley 1: 119). When the confusion finally leads to a manhunt [for Ralph], the reader realizes that despite the strong sense of British character and civility that has been instilled in the youth throughout their lives, the boys have backpedaled and shown the underlying savage side existent in all humans. "Golding senses that institutions and order imposed from without are temporary, but man's irrationality and urge for destruction are enduring" (Riley 1: 119). The novel shows the reader how easy it is to revert back to the evil nature inherent in man. If a group of well-conditioned school boys can ultimately wind up committing various extreme travesties, one can imagine what adults, leaders of society, are capable of doing under the pressures of trying to maintain world relations. In the novel, Simon is a peaceful lad who tries to show the boys that there is no monster on the island except the fears that the boys have. "Simon tries to state the truth: ...

Self Critique Essay Example | Topics and Well Written Essays - 500 words

Self Critique - Essay Example Entrepreneurs have to be extremely organized because at the beginning they are they only ones working for their business, so this means that they have to stay focused and on track at all times. In addition to my huge workload at school, I also have to make time for extra curricular activities. Finally, because entrepreneurs have to be so open to new ideas, they will inevitably have some failures along the way. As a student, I have done poorly in some of my classes but I did not let it stop me from doing well the next semester. The key was to wipe the slate clean and think of a new class as a fresh start, and I can do the same as a small business owner. In my opinion, my three greatest strengths as an entrepreneur would be the fact that I do not take advice well, have weak communication abilities, and am not very creative. Although entrepreneurs can be single-minded, there are some occasions when they need to take advice from someone else who may be more of an expert in a particular area. I am a very individual person and like to go with my own ideas because I know that I can trust them. Also, entrepreneurs have to be able to appeal to potential investors and/or partners to help with a small business. In my honest opinion, I do not sound very convincing when I am asking for help because I can feel somewhat embarrassed. Finally, entrepreneurs need to be creative and innovative because to make a difference in the marketplace they need to come up with something new. I struggle to do this because I am always afraid that something new will not be very successful, so I try to copy other designs somewhat. I can overcome my dislike of other people’s advice by keeping an open mind and remembering that I do not know everything. As long as the final decision is mine, then I am still in control and I can always change my mind if I need to. Also, I can overcome poor communication skills by practicing making pitches to other people. I need to remember

Question for analysis 4 Assignment Example | Topics and Well Written Essays - 250 words

Question for analysis 4 - Assignment Example The move also follows the directive given concerning the full exploitation of internet to broaden the scope of sourcing reference materials. The limits include inaccurate or biased sources of Information. Not all the information available via the internet are credible, the user must be able to select the right kind of information. Some of the available information consists of other people’s thoughts and views are bound to have errors occasionally. Information Overload when users go through a bunch of many information sources, and they still locate the most appropriate ones The lecturers should recommend a number of credible, relevant and resourceful sites to avert such problems (Folk and Shawn 161). The second alternative will be to filter certain computer sites that can draw away the students’ keenness. There is minimal time required for sourcing information hence reduces time wastage. In addition, the information acquired will be credible and accurate, as the lecturers would recommend only relevant sources. Acquisition of bias information still exists on the end users side. The process promotes laxity in learning at the expense of critical thinking. The students should make it a routine to allow them make presentations in class to promote critical thinking about subject matters eliminating overreliance on internet