Essay about MERGER AND ACQUISITION
Company A, which has been acquired by Company B, was founded in 1956 in Mobile, Alabama. The average age of its workforce is 57 and it is comprised of 40% Caucasian and 85% male. Company B was founded in 1997 in San Francisco, California. The average age of its workforce is 35 and it is comprised of 45% Caucasian and 50% male. These two companies have been staunch competitors in the marketplace for several years and the employees of Company A are resentful of integrating with their former rival (Argosy, 2013).
Company B’s Goals:
Managing the Communication and Information Sharing:
The company wants to keep employees informed of how the acquisition will impact them.
The company wants to be sure that they provide …show more content…
Furthermore, because company A has been in business since 1957 it would also be in the acquiring company’s best interest to also communicate with customers or take a chance on losing long-time patrons of company A.
The U.S. General Accounting Office conducted a forum in 2002 to determine best practices for mergers and acquisitions and discovered that the following steps should be implemented for effective communication.
Practice: Establish a communication strategy to create shared expectations and report related progress; Implementation Step:
* Communicate early and often to build trust;
* Ensure consistency of message;
* Encourage two-way communication;
* Provide information to meet specific needs of employees.
Practice: Involve employees to obtain their ideas and gain their ownership for the transformation; Implementation Step:
* Use employee teams;
* Involve employees in planning and sharing performance information;
* Incorporate employee feedback into new policies and procedures;
* Delegate authority to appropriate organizational levels.
Consolidation and Change:
Practice: Ensure top leadership drives the transformation; Implementation Step:
* Define and articulate a succinct and compelling reason for