Posted: January 31st, 2023

Can This Merger Be Saved?” by Sarah Cliffe

Can This Merger Be Saved?” by Sarah Cliffe
Summary of the Current State
The case is a presentation of two merging companies which are faced with numerous challenges on how the merging should be done effectively.
Summary of Desired State
The desired state is to see the two companies merge successfully and the operations gets back to normal.
Problem Statement
In the case. Sara Cliffe illustrates the amalgamation between two organizations namely; Synergon Capital and the Beauchamp, Becker, and Company. Synergon Capital provides financial services from the United States. The service is mainly delivered on behalf of organizations with poor administration. After the merger of the organizations, the first action they take is firing the majority of the administrative team over a period of one year.
Driving Forces
The merger could be for the benefit of Synergon as they could acquire a lot of knowledge on the approaches used by Beauchamp in the management of their customers. The core reason that Julian Mansfield is not delighted by the merger is due to the massive alterations by Synergon on Beauchamp. For instance, there are several documents which they must fill in as well as the introduction of a new bonus structure (Hurtt, Kreuze & Langsam, 2000). Moreover, Julian Mansfield is faced with rude treatment from individuals working for Synergon. There are travel shifts, and Mansfield is not provided with lunches moving forward. Due to such difficulties, Mansfield is left with several decisions to make which include staying in the organization or going for retirement.
Restraining Forces
Beauchamp fails to fit in the image. Beauchamp is a British owned financial-service provider whose top administrative team is strong. The long-term managing director for the organization is by the name Julian Mansfield. The director has successfully personified the organization during his management period (Cliffe, 1999). Beauchamp appears to be a preference to Synergon due to its expansive European market. The company’s good performance is shown by the strong returns as well as the loyalty exhibited by most of its affluent customers. However, Julian Mansfield who is the long-term director of the organization is opposed to the amalgamation.
Nick Cunningham is charged with a critical role in ensuring that there is a smooth amalgamation between the companies (Vasella, 1999). Nick appeals to campaign against the idea right from the start. However, his manager is clear that he must make the acquisition successful. Moreover, the manager demands that Nick must be able to convince Julian Mansfield to remain within the organization. In responding to the current situation, it is important to respond to the idea that propels Synergon to merge with Beauchamp.
Diagnostic Statement
One of the desired things is including Julian Mansfield in finding a solution for the challenge other than perceiving him as the problem. Mansfield already articulated his readiness to assist Synergon to achieve its projected number. It is essential for Nick to permit Mansfield to own the idea and be entirely in charge of Beauchamp so that he can successfully create the plan through which Synergon will realize its projected number. Nick should believe in Mansfield as he undertook his diligence on Synergon before the amalgamation plan and he comprehended the financial objectives of the organization (Hurtt, Kreuze & Langsam, 2000). Moreover, Julian Mansfield gave the blessings to Synergon acknowledging that he would be a subject of its administration.
Proof of Diagnostic
It is important for Synergon to put Mansfield in Profit-Loss based incentive. Given that Mansfield was a successful manager in Beauchamp, he will be able to integrate the new management aspects at his disposal in propelling the profit gain as well as cost minimization based on the aggressive profit-loss goal. Such aspects include the access to a wide range of commodities as well as the idea of streamlining various operations in Synergon (Cliffe, 1999). Opportunities for extensive cost minimization could exist even in the successfully managed organizations which have been merged. Beauchamp could require a well-formed incentive plan. It will not matter the strategy that Mansfield will use in realizing the objectives.
Another requirement that could be effective in this situation is putting a finance expert from Synergon to Beauchamp. It is also important to ensure that the corporate controller in Beauchamp is an individual with broad knowledge about Synergon. The primary essence of this could not be overstated. Putting such an individual in that position could be beneficial in two major ways which include; the development of an insider with the capacity to assess the financial performance of Beauchamp as well as its progress toward achieving the objectives as well as comprehending the dynamics of these organizations. Moreover, it will provide Julian Mansfield a direct entree of information on the way to successfully merge the two companies (Hurtt, Kreuze & Langsam, 2000). There is a need for monitoring the execution of Mansfield. His management skills are useful in the identification of legal, financial as well as environmental challenges which would be useful in the acquisition goal.
Cause Evidence Action plan Ideas
Changes on Beauchamp Firing of the workers Retaining the current structure in Beauchamp
Management differences Mansfield retirement consideration Negotiations aimed at retaining the current management team at Beauchamp.
Managerial interference Synergon’s changes in Beauchamp. Beauchamp Management to make major decisions.

The case provides two major essential reasons namely the European market as well as the way Beauchamp successfully manages its clients. Nonetheless, the turnover for Beauchamp was small at 4% in contrast to Synergon turnover at 21%. There is an aim for Synergon to boost the turnover rate for Beauchamp. However, this raises a critical question regarding the possibility of achieving this aim with the kind of strategy they embark on using (Hurtt, Kreuze & Langsam, 2000). There is a major disparity between the approaches that Beauchamp is using from the strategy the Synergon intends to use. In this regard, most of Beauchamp’s time is spent with the clients whereas most of the time is spent among the employees.
Before the acquisition of Beauchamp, there are a lot of promises that they would transform the organization to improve its turnover. At first, the idea was perceived with great enthusiasm especially for the cross-selling of Synergon’s commodities associated with the affluent customers. The main idea behind Nick’s opposition to the merger idea relates to the shifts and the rude demands made for instant acquisition of information (Cliffe, 1999). Nick is faced with a tough task ahead as the retirement of Julian Mansfield would cost him the job.
Action Plan
Other than working on behalf of Synergon, Nick should be working on behalf of Beauchamp to reduce the dictatorial tendencies by Synergon administration that are currently plaguing the Beauchamp. Afterwards, Nick should turn to various matters that are high concern about creating the numbers. One of the critical aspects is that Julian Mansfield comprehends the main goals. He has shown that Beauchamp is capable of meeting the target numbers advocated by Synergon. One way to improve the current situation is by pressing Mansfield to accept the idea of cross-selling the commodities offered by Synergon. However, for this to occur, there is a need to reconsider the financial interests linked to Beauchamp. Thus, Nick and Mansfield should map a sound game plan which will incorporate the alterations in compensations, comprehension on the client and workers retention and the cross-selling incentives.
Action to be taken By who/when Priority (low, med, high) Short or long-term) Outcome/Impact Obstacles and Risks
Maintaining the current state of Beauchamp By both Synergon and Beauchamp team High Long-term Resolving the current standoff between the two countries The perception by Synergon that they taking over a poorly performing organization.

Response to Obstacles and Risks
Attitude is one of the key factors that could undermine the Action plan. The attitude exhibited by Synergon demonstrates that the changes advocated must be implemented without first underlining the main effects that could result from the implementation of such alterations. Synergon’s view of Beauchamp as a failed company is undermining the efforts to effectively merge the organizations and maintain a healthy environment that could support successful operations. Also, failure to debate on the different cultures and methods of operations in the companies will further inhibit their merge. Mitigation of the risks and obstacles should take the approach of negotiating various issues that create divergences between the organizations. This is to enable the organizations to arrive at an agreement that can propel their operations forward.
Responses to Obstacles and Risks
There is a need to look for the balance between the numbers in both companies. For instance, Synergon is legally obligated to comprehend Beauchamp’s numbers as well as its financial reporting. It is also important to underline some of the financial threats associated with Synergon merge with Beauchamp. However, these matters are not being carried out as required. For instance, purchasing, as well as benefits entitled to the employees, have not been left to Beauchamp’s management. Various critical matters are not being addressed by the condescending attitude that is drifting along the Atlantic from the head offices of the organization. This attitude portrays a tendency by Synergon to believe that the organization acquired a poorly performing and is set to annihilate the old formation and instead create a whole new structure.
Also, there is a challenge on the side of Nick. In actual sense, Nick has yet to accomplish his task. However, he must act carefully to prevent the meltdown that is currently experienced by the organization. Nick’s position should be perceived as a referee who will oversee the integrations become successful by assisting the two firms to comprehend each other and management members change their attitudes. To finalize this objective, Nick is required to inform people from Synergon and Beauchamp to develop new methods. He must be able to convince the top management in Synergon head offices that the merging process will not be successful unless there is a willingness to break some of the rules currently in place. Nick should be an advocate for Mansfield at the headquarters as he is the only person that understands the concerns raised by Mansfield regarding the future performance and some of the effects posed by certain changes made. The action plan should also focus on the retirement of Mansfield. He should take the management of Beauchamp without the mentality of taking a retirement.
Closing Statement
There is a dire need for the senior administrative team in Synergon to recognize the need for them to take actions by leaving the management of Synergon Company under Mansfield. The interference of the company is a major challenge which inhibits its performance. It is evident that the personality exhibited by senior management in an organization plays a critical role in the future execution of various operations. One of the underlying challenges, in this case, is the interference from Synergon management team. There was a need for Synergon first to evaluate the strategies of integration that would be appropriate for both organizations before implementing the changes.

References
Cliffe, S. (1999). Can this merger be saved?. Harvard business review, 77, 28-46.
Hurtt, D. N., Kreuze, J. G., & Langsam, S. A. (2000). Can this merger be saved?. Journal of Corporate Accounting & Finance, 11(2), 17-24.
Vasella, D. (1999). Can this merger be saved. Harvard Business Review. Jan-Feb, 199, 44.

Check Price Discount

Study Notes & Homework Samples: BCJ100 (2) Define due process, as required by the Bill of Rights »A study of the role of human rights in the fight against terrorism