Tuesday, June 11, 2019
Critically evaluate the organisational impact of mergers and Essay
Critically evaluate the organisational impact of amalgamations and acquisitions on the enlarged tourism firm - Essay ExampleMergers and acquisitions emergency to be carefully considered, well planned and executed with great care because, although a decision to aim an enlarged firm can provide an prospect for growth, a failed execution can be costly, resulting in others attempting to takeover or control a part of the business. A merger or an acquisition is followed by a period of uncertainty in the enlarged organization as change managers get wind to execute plans and transform a vision into reality. It is necessary to try and pay attention to the human resources in the enlarged organization along with trying to utilize economies of crustal plate and synergies, because those who have been interacting with the previously separate organizations can quality insecure, angry and frustrated with the change. Thus mergers and acquisitions bring about a period of uncertainty and chaos as spectators as well as share markets finalize if the business decisions that were made or their executions have been sound. This brief essay presents a discussion of the organizational impact of mergers and acquisitions on the enlarged tourism organization.Mergers and acquisitions have been rattling popular in nearly all sectors of the economy in the past decade because corporations have felt that there is a need to utilize economies of scale and to take advantage of the strengths which have been developed in specific organizations to provide lower operating costs in order to thrive in warring times (Andersson, 2000, Pp. 1 10). In the tourism sector, mergers and acquisitions have had an impact on hotel chains as well as airlines and an increasingly larger number of firms have tried to join hands in order to survive or thrive. Shocks such as the September 11 terrorist attacks as well as high aviation fuel costs, have encouraged firms associated with the airline or hotel business es to combine their strengths in order to become economically competitive. An example of a recent merger in the airline
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