Case Study- Merger Event
1. Introduction 450 2.1 Background
In 1954, Alpha Plastics was founded near Manchester. And by the mid 1969’s, the company had developed into a medium-sized company with around 6,000 employees. The company was famous for developing and manufacturing a wide range of laminates and industrial adhesives. Also, it had explored the market in synthetic fibre manufacture by take-over. In 1988, Alpha Plastics involved in merger with the Colmar Chemical Company, which is a slightly larger organisation with 8,500 employees and located near Stockport. Colmar produces a variety of industrial chemicals besides plastic and specialises in the production of synthetic fibres. Alpha Plastics believed that the merger would allow taking advantage of Colmar’s Research and Development facilities as well as its marketing organisations to be more competitive. However, this event had caused the unrest in Alpha because employees did not know the detail information and fear of merger. Also, the merger plan, including department structure, management reorganization and new human resource assignment, caused the dissatisfaction in the two companies. There are some problems and conflicts in this merger such as redundancies, integration and communication. The board had no ideas to improve this situation. 2.2 Aim
It is hoped that this report will assist the board to relieve the pressure. The aim of the report is: a. To evaluate the current situation b. To design and evaluate an alternative action plan c. To put forward the recommendations on how the current situation could be improved
By doing this, the merger will be continued successfully and effectively. In fact, the related suggestions are provided throughout the report in the related sections.
1.3 Objectives
In order to achieve these aims, there are several objectives considering to be completed. To review the whole process of merger, the related objectives are: * Review the merger situation, plan and
In 1954, Alpha Plastics was founded near Manchester. And by the mid 1969’s, the company had developed into a medium-sized company with around 6,000 employees. The company was famous for developing and manufacturing a wide range of laminates and industrial adhesives. Also, it had explored the market in synthetic fibre manufacture by take-over. In 1988, Alpha Plastics involved in merger with the Colmar Chemical Company, which is a slightly larger organisation with 8,500 employees and located near Stockport. Colmar produces a variety of industrial chemicals besides plastic and specialises in the production of synthetic fibres. Alpha Plastics believed that the merger would allow taking advantage of Colmar’s Research and Development facilities as well as its marketing organisations to be more competitive. However, this event had caused the unrest in Alpha because employees did not know the detail information and fear of merger. Also, the merger plan, including department structure, management reorganization and new human resource assignment, caused the dissatisfaction in the two companies. There are some problems and conflicts in this merger such as redundancies, integration and communication. The board had no ideas to improve this situation. 2.2 Aim
It is hoped that this report will assist the board to relieve the pressure. The aim of the report is: a. To evaluate the current situation b. To design and evaluate an alternative action plan c. To put forward the recommendations on how the current situation could be improved
By doing this, the merger will be continued successfully and effectively. In fact, the related suggestions are provided throughout the report in the related sections.
1.3 Objectives
In order to achieve these aims, there are several objectives considering to be completed. To review the whole process of merger, the related objectives are: * Review the merger situation, plan and