Opportunities:
Despite the adverse relationship between the executives of Beauchamp and Synergon, there might be a room available for the resolving the issues. The fact that the acquisition of Beauchamp by Synergon, is ultimately beneficial for both the companies. So, they will make the relations better in the future. Furthermore, both the companies will have to amend their culture,in order to make the acquisition successful and profitable. The poor relationships between both companies can have an adverse impact on the ability, to achieve post-acquisition benefits for both Synergon and Beauchamp. The ultimate purpose of the acquisition for Synergon, is to operate directly in the U.K. market.So it could take benefit from the wealthy customer base of Beauchamp, and to take benefit from the expertise of the Beauchamp i.e. their managing director Mr. Julian.
On the other hand, Beauchamp aims to take considerable benefits, from the technical expertise of Synergon.As the areas in which Beauchamp lacks, Synergon hasconsiderable competencies in that particular area. It can be said that, poor communication and terms between the senior management of both the companies, will not allow them to take advantage from the acquisition. Due, to the extreme harsh relations, it is highly likely that Mr. Julian will leave the combined company.Which might place alimit on the ability of Synergon, to gain advantages from the purchase of Beauchamp.
By implementing several changes in the operating style and culture of both the parties the issues can be resolved, which are necessary in order to make the acquisition feasible. The culture of Synergon is to maintain close monitoring on the middle management of the subsidiaries.Also, the reward package is verylow. It is recommended that, the reward system should have to be adjusted adequately that it could motivate enough the employees of Beauchamp, to contribute to the success of both the subsidiary and parent company.
On the other hand, the management of Beauchamp, also has to show some flexibility in fulfilling the requirements of the potential acquirer. The fact that the management of Synergon requires significant and complex information, which may be very critical and essential for the parent company.Without this information, the planning about the management of the target company is not possible. Furthermore, the conflicts can also be resolved, if the management of Synergon gives sufficient time to the management of Beauchamp for reporting.Which will not impair the quality of their work.
In addition to the above factors, the conflicts can also be resolved.By providing guidance to the auditors and middle management of the Synergon, on how to communicate with the management of Beauchamp. As the terms will deteriorate substantially, due to the inappropriate way of communication of the auditors with the secretary of Mr. Julian.This slang way of talking toauditors undermines the reputation of the profession and parent company.This also damages the relation of both parties. Furthermore, the employees of both companies, will have to receive substantial training, regarding the culture of both the companies.So that, the employees will be aligned to the policies of the group and subsidiary. Many mergers and acquisitions transactions fail, just because of the clashes between the cultures of different organizations. The terms and affairs between Beauchamp and Synergon can be improved, due to this cultural compatibility.
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