17 Nov 2022

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Company Merger: What Justus Company should consider?

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Academic level: College

Paper type: Assignment

Words: 550

Pages: 2

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The culture of a particular company can be identified as a pattern of a particular belief, knowledge, as well as behavior that can assist in attaining the knowledge necessary for succeeding in specific generations. To build something that can last for an extended period, it is essential for acquirers to use their well-developed toolkits that can assist in the management of the operational aspects of a particular acquisition. The company being considered is Justus Company, which focuses on making toys for children with developmental as well as physical disabilities. The toys made by the company are not only colorful but are easy to hold and can assist in the engagement of children as well. They enable the disable children to develop skills that other nondisabled children might develop naturally. On the other hand, the company develops books with pages that are not easy to tear, making it possible for them to engage with the content that can assist in their development.

Justus Company considers merging with another international toy-making company. In the light of the need to merge with the global organization, the company considers unifying the culture of both companies. When merging with the global toy-making organization, it is vital to consider the aspect of universalism, which relates to the conviction that it is essential to align the different ways of working to ensure that the employees are not anxious or frustrated with the organizational culture. Even though the merger might be a problematic and controversial undertaking Cartwright & Cooper, 2012), the task of the human resource manager would involve ensuring that the employees are not confused or unsure about the future.

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The integration of the culture of the two companies is therefore vital for the success of the merger or acquisition. For this reason, it is essential for the human resource manager to communicate early and more often. In this light, if individuals feel that they are not given enough information, they are likely to make suitable changes, which is a provision that calls for transparency. The employees need to be confident about the decision to merge, which means that they should be assured of their job security and their value in the organization (Carleton, 2004). The establishment of common ground between the two organizations also requires the definition and mapping of the existing cultural gaps, which requires the determination of the differences in the cultural provision (Cartwright & Cooper, 2012). Being clear and direct about the disparities is vital for ensuring the tackling of the issues that might arise.

The other vital element to consider relates to the definition of a new culture, which is vital for the development of a cultural integration plan. The integration plan should constitute the values, belief, as well as the behaviors that the employees share within the organization (Carleton, 2004). During the cultural integration, it is vital to celebrate change since cultural integration between the two organizations relates to the adaptation and celebration of the new culture that is born from the merger or acquisition. In most cases, mergers and acquisitions require an investment in brand strategy. This consideration is necessary for ensuring that the employees deliver the expected return on investment (Carleton, 2004). However, it is vital to consider that the cultural integration cannot happen instantly, which means that the dedication of the time and resources needed for the integration is essential for the development and articulation of the new brand. In this case, the newly developed brand will make it possible for the two cultures to understand the opportunities of the mergers made available.

References

Cartwright, S. & Cooper, C. L. (2012). Managing Mergers Acquisitions and Strategic Alliances. Routledge.

Carleton, J. R. (2004).  Achieving Post-Merger Success: A Stakeholder's Guide to Cultural Due Diligence, Assessment, and Integration . Hoboken: John Wiley & Sons.

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StudyBounty. (2023, September 16). Company Merger: What Justus Company should consider?.
https://studybounty.com/company-merger-what-justus-company-should-consider-assignment

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