Cross Functional Teams Purchasing and Acquisitions Management Term Paper - 1

bumble Functional Teams Purchasing and Acquisitions Management - Term Paper ExampleThe researcher states that the incidence of M&A has continued to increase significantly during the last decade, both domestically and internationally. The sectors most affected by M&A activity bewilder been service and knowledge-based industries such as banking, insurance, pharmaceuticals, and leisure. Although M &A is a usual means of increasing or protecting market share, the scheme does not always deliver what is pass judgment in terms of increased profitability or economies of scale. While the motives for mergers can variously be expound as practical, psychological, or opportunist, the objective of all related M&A is to achieve synergy, or what is ordinarily referred to as the 2+2 = 5 effect. However, as many organizations learn to their cost, the mere recognition of capableness synergy is no guarantee that the combination will actually realize that potential. Most people have difficulty st ating their organizations strategy what the organization wants to become, how it would like its people to behave, and what it will provide to which customers. In the future, the reality is that the organizations business and operating units march to priorities different from, if not contradictory to, those implied by its strategy. The majority of the people in an organization focus on day-to-day operational matters and their individual aspirations. Consequently, the strategy is never realized. Frustrated by the lack of forward progress, executives launch new communication, reorganization, process redesign, or technology initiatives. Everyone is doing more, and yet performance stagnates or even declines. AKPMG report found that, though 82% of respondents believed the deal they had transacted was a success, 83% of the same mergers failed to increase stockholder value. Of these transactions, 30% produced no discernible difference in shareholder value and 53% actually reduced value.