Scribd Logo
Upload

Welcome to Scribd!

  • 397 views

    Merger Acquisition

    Uploaded by

    Punitharan Sivanathan
    The document discusses strategy and complementary strategic options such as mergers and acquisitions. It provides an example of Brandix Lanka Ltd, which was formed through the merger of Phoenix Ventures and Jewelknit Group. This merger allowed for backward integration, reduced costs, and increased manufacturing capacity. The summary discusses the HR contribution to mergers through a three stage model of pre-combination, combination, and solidification phases, focusing on change management, communication, and ensuring employee retention and confidence.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Merger Acquisition

    Uploaded by

    Punitharan Sivanathan
    397 views13 pages
    The document discusses strategy and complementary strategic options such as mergers and acquisitions. It provides an example of Brandix Lanka Ltd, which was formed through the merger of Phoenix Ventures and Jewelknit Group. This merger allowed for backward integration, reduced costs, and increased manufacturing capacity. The summary discusses the HR contribution to mergers through a three stage model of pre-combination, combination, and solidification phases, focusing on change management, communication, and ensuring employee retention and confidence.

    Original Description:

    merger acquisition

    Original Title

    merger acquisition

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses strategy and complementary strategic options such as mergers and acquisitions. It provides an example of Brandix Lanka Ltd, which was formed through the merger of Phoenix Ventures and Jewelknit Group. This merger allowed for backward integration, reduced costs, and increased manufacturing capacity. The summary discusses the HR contribution to mergers through a three stage model of pre-combination, combination, and solidification phases, focusing on change management, communication, and ensuring employee retention and confidence.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    397 views13 pages

    Merger Acquisition

    Uploaded by

    Punitharan Sivanathan
    The document discusses strategy and complementary strategic options such as mergers and acquisitions. It provides an example of Brandix Lanka Ltd, which was formed through the merger of Phoenix Ventures and Jewelknit Group. This merger allowed for backward integration, reduced costs, and increased manufacturing capacity. The summary discusses the HR contribution to mergers through a three stage model of pre-combination, combination, and solidification phases, focusing on change management, communication, and ensuring employee retention and confidence.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 13

    Strategy

    Ø An organizations ability to perform &


    strenthen its long term competitive
    position, to gain a competitive advantage
    over its competitors
    Ø It differenciate the organization from its
    rivals
    Types of Strategy’s

    Ø Generic Competitive Strategy


    Ø Complementary Strategy
    Ø Functional-Area Strategy
    Complementary Strategic Options

    Ø Strategic alliance & Collaborative partnerships

    Ø Mergers and acquisitions

    Ø Forward integration & backward integration

    Ø Outsourcing

    Ø Offensive & Defensive Strategy


    Benefits of Complementary Strategies

    Shared Reduced cost & Shared Risk Increased


    Resorces higher returns Customerbase & sales

    Additional
    Easy Financing
    Expertise
    Mergers & Acquisitions
    Ø Mergers
    Combine existing two businesses and form a single organization entity

    Ø Acquisitions
    One company purchases most or all of another company’s shares to gain the full
    control.
    Case Introduction – Brandix Lanka Ltd

    v Company formed by merging Phoenix Ventures and the Jewelknit group

    v Sri Lanka’s Single largest apparel exporter

    v Work force of 14,400 employees

    v Annual turnover of USD600 million

    v 38 manufacturing facilities situated in Sri Lanka, India & Bangladesh

    v Customer Portfolio - Victoria's Secret, Gap, Next and Marks and Spencer
    Mergers – Brandix Lanka Ltd

    Ø Brandix Lanka Ltd formed by merging Phoenix Ventures and the Jewelknit group.

    Ø Vertical Integration – Jewelknit produces knitted wears and phoenix ventures

    produces fabrics

    Ø Backward Integration – Manufacturing company buys or take control of a company

    which supplies products for manufacturing


    Benefits to Brandix Lanka

    Ø Economies of scale and reduced cost

    Ø Increased manufacturing capacity

    Ø Reduced cost in importing raw materials (fabrics)

    Ø Minimized delay is receiving raw materials

    Ø Oppurtunity to explore new markets


    HR’s contribution in this merger
    Three stage model for Mergers & Acquisitions
    Ø Stage 1 – Pre-Combination
    Process takes place before the M&A is completely legal
    Ø Stage 2 – Combination
    Focused on combining and integrating the companies
    Ø Stage 3 - Solidification
    Involves solidification and assessment of the new entity
    HR’s contribution in this merger
    Stage 1 – Pre-Combination
    Ø Identify leaders from both companies for effective smooth transition and
    communication

    Ø Cultural assessment of both companies

    Ø Creating training programme for learning and knowledge transafer

    Ø Conducting thorough due diligence process in all vital areas

    Ø Decide on composition of team


    HR’s contribution in this merger
    Stage 2 – Combination
    Ø Ensure effective communication for smooth transformation

    Ø Planning and managing the relocation

    Ø Ensure Job security to employees to boost confidence

    Ø Creating team design & selection

    Ø Establishing new organization structure, culture, HR policies & practices

    Ø Change management
    HR’s contribution in this merger
    Stage 3 - Solidification
    Ø Change management
    Ø Conduct orientation program on new policies,procedured & performance
    management etc.
    Ø Provide new job description to all employees
    Ø Identify skills of people and assigne them accordingly
    Ø Educate all employee on new remuneration and other benefits
    Benefits of HR initiative during Mergers
    Ø Ensure right talented people are retained and assigned to proper places
    Ø Reduced employee conflicts and problems
    Ø Ensuring enhanced confidence among the employees
    Ø Reduced employee turnover
    Ø Effectively manage the resistance to change
    Ø Provide adequate training to employees
    Ø Manage employee stress sothat it will not negativeley impact business

    You might also like