Society has come up with numerous quotations that explain the importance of seeing failure as vehicle for growth. Growing up, children are often told, “If at first you don’t succeed; then try, trying again.” In fact, this value of rising from the ashes of failure is instilled into many at a very young age. You fall off a bike, you get back on. You lose the big game; you study your opponent so that you increase your chances of achieving victory in your next encounter. The business world is no different. If you lose a promotion to someone who is more talented, you demonstrate your acumen to prove your worth. In looking at M&As, much information can be gleaned from past failures. As you have seen, many articles and websites provide narrative insights that detail the missteps of CEO’s, HR departments, top management, and organizations as a whole.
In this week’s paper you choose a failed M&A from which you would like to draw lessons. The only M&As you may not use are ones that have already been discussed in the course.
Here’s my selection:
How the AOL-Time Warner Merger Went So Wrong (will upload, email or send google link)
Once you have selected your M&A example, analyze information sources that reflect upon the variables that caused the failure. Then, use HR best practices to determine how HR might have prevented the failure. You will examine each step of the M&A process to determine how HR could have employed best practices to prevent the M&A from failing.
Conduct research using resources attached and other credible sources to find a real-world example that portrays at least one common cause of M&A failures. Causes may include but are not limited to:
· Difficulty of employees to adapt
· Employee speculation/rumors
· Faulty evaluation (estimate too high)
· Inability to achieve synergy
· Inability to retain human capital
· Inconsistent management
· Ineffective integration of policies and procedures
· Misalignment in management attitudes, beliefs, and visions
· Managerial hubris syndrome
· Misaligned cultures
· Mismanaged talent
· Merger syndrome
· Poor due diligence
· Poor internal communication about the benefits and values of the M&A
· Poor planning
· Pressure due to debt
· Too much focus on the merger and not enough on the business
· Unequal dissemination of physical and financial resources
To complete this Assignment, first provide a brief synopsis of your failed M&A:
· Describe the organizations involved in this M&A.
o Who was the target organization?
o What was the acquiring organization hoping to gain from the target? If your example is a merger, explain what each organization involved in the merger hoped to gain from one another.
· Identify the time period that this M&A occurred as well as give a brief summary of the industry at this time. (For example, if the M&A involved two software companies, what was the software industry like during this time? Who were its competitors?)
Then, complete a four point analysis on this failed M&A:
1. Define the failure.
· Briefly identify why this M&A is an example of a “failed” merger.
· Describe each element that contributed to the failure of this M&A.
2. Identify the cause.
· What factor(s) caused the failure?
· Could HR have prevented or mitigated the occurrence of this failure? If so, describe what HR could have done. If not, justify why you believed HR would not have been able to reduce the chances of failure.
· Defend your answer, citing examples from your research.
3. Correct the failure.
· How might organizations use the failed M&A example you identified, as well as HR best practices, to mitigate their chances of an M&A failure in the future?
o In hindsight, name at least two best practices HR could have implemented to address each cause.
· At what point before, during, or after the M&A should HR have implemented these best practices?
4. Describe preventative measures,
· Based on the failed M&A example, describe at least three structural and/or systemic changes that can reduce the chances of this problem reoccurring.
· Provide reasoning as to why these changes would be successful. In addition, predict the impact that these changes would bring to the organization’s future.
Your analysis must be in the form of a 3- to 4-APA style page paper.
|Due By (Pacific Time)||12/16/2014 12:00 pm|
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