Q1. What are the cultural aspects involved in a merger? Give sufficient examples.
BASIC STEPS IN STRATEGIC PLANNING IN MERGER
Any merger and acquisition involve the following critical activities in strategic planning processes. Some of the essential elements in strategic planning processes of mergers and acquisitions are as listed here below :
1. Assessment of changes in the organization environment
2. Evaluation of company capacities and limitations
3. Assessment of expectations of stakeholders
4. Analysis of company, competitors, industry, domestic economy and international economies
5. Formulation of the missions, goals and polices
6. Development of sensitivity to critical external environmental changes
7. Formulation of internal organizational performance measurements
8. Formulation of long range strategy programs
9. Formulation of mid-range programmes and short-run plans
10. Organization, funding and other methods to implement all of the proceeding elements
11. Information flow and feedback system for continued repetition of all essential elements and for adjustment and changes at each stage
12. Review and evaluation of all the processes
In each of these activities, staff and line personnel have important Responsibilities in the strategic decision making processes. The scope of mergers and acquisition set the tone for the nature of mergers and acquisition activities and in turn affects the factors which have significant influence over these activities. This can be seen by observing the factors considered during the different stages of mergers and acquisition activities. Proper identification of different phases and related activities smoothen the process of involved in merger
