Mergers and Acquisitions: What You Need to Know

Question 1

Mergers and acquisitions require a change of the internal operations of the companies involved either by the senior manager or by other international regulatory bodies. It is aimed at establishing a ground for a fair presentation of company data. The Chief Technology Officer should report to the company president. The reporting is necessary so as to have a reporting framework that can harmonize all frameworks in the firm. There is a broad range uses of technology such as during preparation of financial statements. It accurate preparation ensures that all of the information is captured correctly. Reporting to the company president is aimed at discouraging illegal business activity such as selling of company data to competitors and money laundering. Drug trade, for instance, has been on the rise in the last three decades. Given the fact that most of the drug business transactions involve cash transactions, traffickers use financial institutions and well-established companies to incorporate the dirty money into the formal financial system. The reporting, therefore, offers a measure of discouraging these activities by establishing a robust internal framework. The efficiency helps determine the source as well as the purpose of financial transactions. When a company decides to adopt an internal reporting framework, there ought to be a comprehensive consultation and professionalism in the transition ( Khodakarami, & Chan, 2014) . Both public and private companies should consider the risks involved and views and suggestions on alternative measures. All publicly traded companies are required to submit their audited financial statements to the necessary authorities and the shareholders. Internal reporting has assisted in establishing trust in the companies where both existing and potential shareholders often require a credible source of financial data before making any decisions. Research shows that sound internal reporting is a key determinant of success of both private and public entities

The world is changing rapidly due to technological advancement. One of the major concerns of using computers to process information is how they are replacing human labor. Sustainable development aims at creating an environment where the current generation enjoys maximum benefits while conserving the resources for future generations. All firms in the world are adopting this philosophy. However, the rate at which the technology is changing not match the present human capital. The leading cause of technological change is a quest to acquire the latest technology for both office and personal use. Acquiring new technology is one of the most efficient way of running operations in companies around the world. However, the cost of the of these acquisitions is not what people would desire ( Orenga-Roglá, & Chalmeta, 2016) . The level of unemployment is skyrocketing all over the world. These trends have adverse effects on economic growth of countries. The best way of ensuring that people are benefiting from the technology that exist is through the being mindful of the future consequences of such an adoption. Research shows that the effects can be best regulated through adoption of efficient management practices.

Adoption of good technology requires a good understanding of the current market requirements. While most the existing devices cannot utilize the latest technology all the time, there ought to be a plan on how it can be harnessed. The competitive advantage lies in the ability to use affordable and quality technology that does not have a negative impact on the labor force.

The current global trends indicate that the demand for technology will continue to rise in the future. There is a huge gap between what is being supplied and what is being required. The scalability operations will be determined by the ability to match the market requirements.

References

Orenga-Roglá, S., & Chalmeta, R. (2016). Social customer relationship management: Taking advantage of Web 2.0 and Big Data technologies.  Springer Plus ,  5 (1), 1462. 

Khodakarami, F., & Chan, Y. E. (2014). Exploring the role of customer relationship management (CRM) systems in customer knowledge creation.  Information & Management ,  51 (1), 27-42.