This paper examines the pubic affairs contribution to the successful outcome of an application for merger approval to the European Commission, as part of the worldwide merger of…
Abstract
This paper examines the pubic affairs contribution to the successful outcome of an application for merger approval to the European Commission, as part of the worldwide merger of two professional services firms — the first and, to date, the only merger of its kind on this scale in this sector. After describing the context in which the parties' decision to merge was taken, the paper takes a step‐by‐step approach through European merger control procedure and, against that background, explains why the contribution made by public affairs became a key management issue for the parties in this case. The paper describes the public affairs actions taken by the parties to support their legal and economic arguments for approval in order to address some questions about the potential consequences of the merger, to counter some adverse media reaction and ultimately to obtain regulatory approval.
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Hilwani Hariri, Norshimah Abdul Rahman and Ayoib Che Ahmad
The merger of PriceWaterhouse and Coopers & Lybrand marked another historical event in the accounting and auditing industry. Both firms were optimistic that the merger would…
Abstract
The merger of PriceWaterhouse and Coopers & Lybrand marked another historical event in the accounting and auditing industry. Both firms were optimistic that the merger would enhance the performance as well as the profession of the merged firms. This research studies the impact of the merger and the price of audit service charged to their clients. The findings showed that there is no significant impact of the merger on audit pricing. The results provide richer understanding of the relationship between organizational structure and pricing in a developing country.
Mark Jeffery, Robert Cooper and Debarshi Sengupta
A major barrier for growth of large multi-business unit firms is the inability to resource the critical initiatives to win—both in terms of dollars and people. The underpinning of…
Abstract
A major barrier for growth of large multi-business unit firms is the inability to resource the critical initiatives to win—both in terms of dollars and people. The underpinning of the challenge involves the conflict between resourcing current cash-generating legacy businesses vs. new initiatives which may not, in the short term, produce positive financial results. Most companies do not have a formal portfolio process to deal with this fundamental issue. Danaka is a fictional company based on real business experiences. The company has strong growth markets as well as markets that are commoditizing. Unfortunately, the latter represent a sizable portion of the company's business. A framework is given that establishes a matrix to analyze the Danaka businesses using their critical financial criteria—cash generation and top-line growth. Projects are divided into four categories based on how they fit into the matrix, and resource allocations are then analyzed. Students discover that the current allocation does not enable Danaka to meet its aggressive growth goals. The case incorporates an interactive spreadsheet model in which students can dynamically change the various resource allocations and see the impact on future top-line growth. The essence of the case is how to manage the resource allocation for a multi-business unit firm when present allocations will not meet future growth goals.
The key learning of this case is that when business leaders set financial goals, they must understand how they are expending their resources. More often than not, significant changes must occur that could be wrenching to the organization. The key learning objectives are: (1) realize the importance of performing a portfolio analysis; (2) discuss the issues involved in making the changes; and (3) understand how to put the decision process in place.
Stuart Cooper and Suzana Grubnic
The purpose of this paper is to explore the dynamic relationship between formal and non-formal processes of accountability in a public services context.
Abstract
Purpose
The purpose of this paper is to explore the dynamic relationship between formal and non-formal processes of accountability in a public services context.
Design/methodology/approach
The paper presents a case study of the impact of the Health and Social Care Act (2012) on the practices of Health and Wellbeing Board (HWB) members. It draws upon multiple data sources, including in-depth interviews with the members, comprehensive archival data published by the HWB (2011–2019), and observations of HWB public meetings. We utilise the concept of dynamic duality (Li, 2008) to further theorise the relationship between formal and non-formal processes of accountability and how they mutually transform one another.
Findings
The case illustrates the role of formal and non-formal processes of accountability at a HWB in England. Moreover, the case study reveals the relationship and interaction between the formal and non-formal accountability processes and how they change and transform each other over time. We find that whilst non-formal accountability processes were strengthened by a historical legacy of partnership working, over time the dynamics at play led to the development of formal accountability processes through more sophisticated performance systems, which in turn transformed non-formal accountability processes.
Originality/value
The paper presents a more holistic conceptualisation than articulated in prior accountability literature, dynamic duality, on the relationship between formal and non-formal accountability processes. Through application of this conceptualisation to a HWB in England, the paper spotlights the inter-relationship between formal and non-formal processes of accountability, and how they have the potential to transform each over an extended time-period.
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Tim Cooper, Mark Purdy and Mark Foster
To help businesses throw light on potential sources of geographic advantage, Accenture researchers assessed the competitiveness of countries using the five dimensions: talent…
Abstract
Purpose
To help businesses throw light on potential sources of geographic advantage, Accenture researchers assessed the competitiveness of countries using the five dimensions: talent, capital, resources, innovation, and consumers and trade. This paper aims to present the results of that assessment.
Design/methodology/approach
For each of the five dimensions, Accenture researchers identified key indicators – characteristics that suggest how well positioned an economy is to compete in a multi‐polar world. They assessed each indicator using a range of primary and secondary data variables. Primary data were drawn from a global survey of more than 400 business leaders, conducted for Accenture by the Economist Intelligence Unit. Secondary data were drawn from sources such as the International Monetary Fund, the United Nations and the World Bank.
Findings
The paper offers an up‐to‐date assessment of how national resources and capabilities foster competitive advantage based on five issues – talent, capital, resources, innovation, and consumers and trade.
Practical implications
Locating to excel at innovation requires not just a focus on input factors – such as local investment in R&D and education – but also a focus on output measures – such as being able to locally produce valuable new products, services and business processes.
Originality/value
For leaders of companies seeking to re‐locate to compete in a multi‐polar world – that is, one with a diffusion of economic power across a wider range of regions and countries – the article explains why the best choice is to execute a diversified geographic strategy.
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Steven H. Appelbaum and Joy Gandell
The incidence of mergers and acquisitions has proliferated throughout the world including all sectors of our society, both municipal and industrial, private and public. However…
Abstract
The incidence of mergers and acquisitions has proliferated throughout the world including all sectors of our society, both municipal and industrial, private and public. However, the majority (60‐80 percent) of them do not reach their intended objectives owing to the fact that the merging organizations do not realize the impact of neglecting the human resource factor. Although they properly assess and address the financial and legal issues, they continually overlook this critical factor. The present literature suggests what organizations should do to reverse these negative effects and how to properly address the human resources issues. This research seeks to test this list of suggestions, in the form of a unified model, employing the single case study method. The case in question is a newly merged health centre comprised of four well‐established hospitals. Rather than a set of hypotheses, sets of prescriptions were developed to test the model. Data from interviews and existing documents are used to support or modify the final model. The qualitative results utilized a cross‐method analysis that supported the majority of the unified model, requiring a few modifications. This research has subsequently lead to the development of a unified human resources model for the proper and successful implementation of mergers and acquisitions. The implications of these findings for all organizations, and for mergers and acquisitions theory and practice, are discussed.
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Aitziber Arregi Uzuriaga, Fred Freundlich and Monica Gago
To examine perceptions of organizational atmosphere and joint ownership in a firm in which capital ownership is broadly shared among members of its work force.A questionnaire was…
Abstract
To examine perceptions of organizational atmosphere and joint ownership in a firm in which capital ownership is broadly shared among members of its work force.
A questionnaire was administered with a sample of 123 people from a Mondragon cooperative firm, ULMA Architectural Solutions, and responses were analyzed using principal components’ analysis and regression techniques.
Two factors are found to play especially important roles in explaining perceptions: (1) work and management/supervisory practices, especially those relating to communication and participation in decisions in respondents’ immediate work area, and (2) job type (blue collar vs. white collar).
The study confirms earlier research on the broad centrality of participation and related practices to perceptions of work and the organization in employee ownership settings, while findings focus on the immediate work environment and relationships with immediate managers for blue-collar workers.
These are closely related to the research implications, underlining the importance to worker-owners, in manufacturing contexts, of communication and involvement in decisions in their immediate work environment.
Widespread concerns about inequality, poor working conditions, and competitiveness suggest the importance of investigating enterprises with broadly shared capital ownership, enterprises that tend to address these concerns.
The chapter reinforces the fundamental roles of information-sharing and participation in enterprises with shared ownership, while making key distinctions between shopfloor and office workers experiences and perceptions.
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Mergers and acquisitions (M&As) represent major organizational changes, and create traumatic, stressful situations to employees. The purpose of this paper is to study the acquired…
Abstract
Purpose
Mergers and acquisitions (M&As) represent major organizational changes, and create traumatic, stressful situations to employees. The purpose of this paper is to study the acquired key employees' organizational commitment towards the acquiring organization during the post‐acquisition integration phase.
Design/methodology/approach
This paper is a longitudinal single case study of a European‐acquisition within the high‐tech sector. Data are collected for nearly two years both with four repetitive quantitative surveys and 58 interviews.
Findings
The results imply that the key employees perceive the organizational changes differently. In friendly acquisitions, key employees not only expect organizational changes but also they may have an active role in inducing changes. Moreover, the results imply that key employees' organizational commitment is closely linked to the prior role of the key employees in the acquired company, and how they perceive and experience the post‐acquisition integration phase.
Research limitations/implications
This research is a single case study, which strives for analytical generalisation rather than statistical generalisation. The results of the case study are limited to the context of European small‐ and medium‐sized enterprises (SMEs) and the Indian IT industry, and not generalisable as such to other companies or industries. However, this research contributes to the growing interest in understanding how change is experienced by individuals, and especially how key persons and managers from the acquired company experience changes following a cross‐border acquisition.
Practical implications
The findings of this paper provide useful insights to managers involved in M&As on how key persons from acquired SMEs may react to changes following a friendly acquisition.
Originality/value
This paper focuses on the key persons of an acquired high‐tech company and provides unique insights on how key persons may be critical in M&As not only for their tacit knowledge but also from the change leadership point of view. Commitment is crucial from both the retention and change management perspective.
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Steven H. Appelbaum, Joy Gandell, Barbara T. Shapiro, Pierre Belisle and Eugene Hoeven
The multiple organizational factors impacting upon a merger as well as those processes being impacted upon throughout the merger process will be examined. Part 1 of this article…
Abstract
The multiple organizational factors impacting upon a merger as well as those processes being impacted upon throughout the merger process will be examined. Part 1 of this article examined corporate culture and its affects on employees when two companies merge and considered the importance of lucid communication throughout the process. Part 2 of the article addresses the critical issue of stress, which is an outcome within the new and uncertain environment. Finally, the article concludes with the process of managing and strategy throughout the phases, giving guidelines that managers and CEOs should follow in the event of an M&A. Furthermore, the five major sections (communications, corporate culture, change, stress, and managing/strategy) are sub‐divided into three sub‐sections: pre‐merger; during the merger; post‐merger. This is intended to further assist managers and CEOs distinguish the important issues facing employees at each of the three junctures of the M&A process.
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Melanie E. Hassett, Riikka Harikkala-Laihinen, Niina Nummela and Johanna Raitis
In this chapter, we focus on virtual teams and emotions during postmerger and acquisition (M&A) integration. Our main research question is “How to manage emotions and virtual…
Abstract
In this chapter, we focus on virtual teams and emotions during postmerger and acquisition (M&A) integration. Our main research question is “How to manage emotions and virtual teams following cross-border M&A?”. We answer this question through the following research subquestions: (1) What virtual interaction can be identified post-M&A?; (2) What emotions arises from virtual communication; and (3) What emotions and challenges do virtual teams encounter following cross-border M&As? This research is based on a single case study. The main findings imply that emotions, trust, and cultural differences play an important role in virtual interaction following a cross-border M&A.