Essay about Role of Hrm in Mergers Nad Acquisition

7665 Words Mar 30th, 2012 31 Pages
Understanding the Role of HRM

Mergers & Acquisitions:

July 2007
Craig W. Fontaine, Ph.D. Northeastern University College of Business Administration

Based on: C.W. Fontaine, Human Resource Management: The key to Successful Mergers and Acquisitions., The 9th Annual Conference on Business Integration, London, 2005

© 2007 Northeastern University

Executive Summary
HR professionals play a critical role in the success or failure of mergers and acquisitions.

Human resource management professionals must be capable of handling many unique challenges. One of the most prevalent challenges that HR professionals face and the one that requires the utmost attention is in a merger or acquisition. HRM plays a critical role in the
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The beverage industry is a huge industry with billions of dollars in potential profit. These companies all are in the same business and in the same market space, and they cooperate to some extent. Then, businesses across the US were disrupted on October 29, 1929, when the US stock market crashed. The subsequent Great Depression lasted until the time of The New Deal and the advent of World War II. The Third Wave of mergers and acquisitions in the US came in the 1960’s during a booming economy. This was when we first began to see huge conglomerates being formed. Conglomerates are the result of the combination of companies which actually had nothing to do with one another prior to the merger or acquisition. They were simply trying to increase their size to leverage the advantages of having a large company. The Fourth Wave, in the 1980’s, was the age of the so-called hostile takeover. You may recall the well-publicized 1988 leveraged buyout of R.J. Reynolds Tobacco, which came to basically define the “hostile takeover” for most Americans. These are instances in which tremendous amounts of money are applied to entice shareholders to agree to such takeovers. From the 1990’s to the present, we have seen the emergence of a different kind of takeover – the Fifth Wave of strategic mergers – in which organizations intentionally try to absorb other companies to increase their market share and gain competitive advantage.

While we know our country’s business

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