Why Mergers Fail

1319 Words 5 Pages
Two companies have merged. Given many problems can occur with mergers even after the merger has been finalized. There should be measurements whereby problems caused by the merger can be detected before they get out of control. Create a list of measurements that can be examined regularly to determine if the merger may still fail, even though the merger is complete. You must have at least five measurements and you must explain why each could be an indicator the merger may fail. Hint: See Assignment 4a: Essay and recall what a measurement is.
According to Hill, Jones, and Schilling (2014), mergers are agreements between established companies to unite into one new company. Organizations merge for a wide variety of reasons. Some of the more common
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The talk in the board of directors meeting will usually focus on how much money can be made and how fast. Often, the forgotten part of the business is the question of what to do with the customers that already exist for both companies that are merging together as reported by Business Matters (2013). To fix this problem, companies have to understand that their customers are the life blood of their businesses. Customers actually bring in the revenue that businesses need to be successful. This problem can be handled more effectively when companies set up a customer focused management team whose sole purpose is to ensure that objectives and goals are firmly put in place that will ensure that customers on both sides of the merging companies’ needs are met. Again, using the new merger of Dollar Tree acquiring Family Dollar, management made it a priority that the same high quality service that customers had received before the merger was still in place during and after the merger. For example, Family Dollar kept its low cost of household items for the low income customer even though the company was not doing well on its own. On the other hand, Dollar Tree caters to everyone in a little more upscale way, and kept its environment the same such as the majority of the Dollar Tree’s customers are middle class individuals such as teachers that buy novelties for their classroom and young moms and other professionals that buy party decorations and greeting cards. This strategy gave a good balance for the merger without shutting any of its customers out. According to Business Matters (2013), the bottom line for organizations that merge is that careful planning has to be set in place for each individual function category of both joining companies. Goals and objectives have to be followed carefully in order to guide the operations and lead to less problems. In addition, there

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