Mergers and acquisitions are among the major trends in the globalization of companies combining and buying each other. However, not all mergers and acquisitions are peaceful, and some are marred by challenges with the bidder forcibly taking over another company without the agreement of the boards. A hostile takeover is a kind of acquisition which a company carries out against the wish of the board or the owner of the firm. It happens by going directly to the shareholders without the agreement of the management. There are many effects that are associated with hostile takeovers. Firstly, it can result in proxy fight involving the shareholders. It happens when the company trying to take over engages directly with the enough shareholders to change the management of the enterprise. Plenty shareholders should be the majority who can vote the existing management out so that it takes the control of the company with the sole goal of forcibly acquiring the company from the current management. It is very that hostile takeovers are viewed as legal before the eyes of the law. It violates the rights of the board and the management of companies. Hostile takeover should be illegal because all that is done is against the wish of the management, and may lead to closure or loss to the acquired firm.
Chapter 3
Question 1
The market entry system is related to the organizational structure depending on the products that the firm is planning to bring on the market. For a product to be launched, the type of the organizational structure chosen should be the one that facilitates smooth delivery of the services or production of the services. For instance, if the new product entering the market will be sold in foreign countries, the firm may opt for the global organizational structure that will cater for all activities in the foreign countries.
Question 2
The multinational enterprise has different choices to consider before designing an organizational structure. The organizational structure most amounts to the strategies the company is applying the deployment of the talent across its departments Organizational structures are important to the firm because they are units that make the running of a corporation easy. Again, it is important to the company because for an organization to achieve its goals, the strength of organizational design matters most. Environment and the size of the form are major considerations. They are factors that cannot be avoided at all cost. The other factor considered is the age of the talents and the structural designs possible. It is different from the HR’s point of view because its sole purpose is to ensure all the activities run smoothly by use of personnel.
Question 3
IHRM is very instrumental to the success of global organizations because it is through its proper institutions that facilitate MNEs to deliver its transactional services to all parts of the country. It is imperative department in every global form because its contribution to the success of an organization cannot be ignored. It plays a critical role in ensuring that solutions the international labor problems are dealt with. The other function of IHRM is training of the labor force of the MNEs.
Question 4
Networks and learning organizations help ensure MNE’s Advantage by maintaining complex organizational structures. Learning is essential tool for any organization that is aspiring to succeed in its field. By offering networks and organizational learning, the human resource of the company will be enlightened. Therefore, they will understand the new trends and management issues thus, they will better that the other companies are competing. To conclude network and learning organizations should be encouraged in every organization.
Question 1
A transitional company is a large corporation that carries out business in many countries. The activities of a transitional enterprise extend to almost all parts of the world other that the home country of the form. There are different ways in which a transitional firm can be differentiated from the traditional multinational companies. Identifying these firms with a single national home is impossible.
Question 2
Capgemini meets the criteria of being a multinational because it has many facilities operated in around 40 countries. The company operates in many countries and partners with different companies such Microsoft and SAP, who work in various parts of the world. Capgemini cannot identify itself with any single national home because its offices are scattered to different nations and has a well-established international human resource.
Question 3
Many implications can be drawn from the picture of a transitional enterprise. Firstly, some people critiques the transitional enterprise by claiming that they most enter into countries that have weak human rights. The goal of settling in a country with low standards of human rights is to get cheap labor and exploitation of the resources of these less developed countries. It can increase mobility of transitional corporation has benefit to the owners of the firms but results to lose to the community and workers in general.
Question 4
HR of a transitional company is usually faced by a hard time trying to develop a similar culture in all regions. It is different from the human resource of multi-domestic companies where the HR integrates all the activities easily because they are located in the joint area. The only problem that Cap Gemini may be faced with is coordination of different roles, objectives, and resources across all the countries markets due to its worldwide expansion.
Chapter 4
Question 1
There are many challenges facing IJVs with some of these mergers resulting in closure. The reason for failure is that many companies do not have experience, knowledge, and capabilities to manage the alliances at the same time maximizing the profits. They also do not carry out governed relationships through. The other challenge that faces IJV is the comparative management which can jeopardize the quality of decision-making process and the strategy of the ventures. Finally, implications take a big risk because they are partners with separate companies who have entirely different identity, and thus the control of each partner is limited.
Question 2
Mergers and acquisition have become important channels of the globalization of the companies and industries. Companies have been expanding their operation and scale by the acquiring and merging with businesses and even practicing foreign direct investment in partnership with the home companies. International human resource management is a key to the success of these firms. It is the department responsible for the coordination of the activities taking places in all the regions in which the ventures are situated. Many companies have formed international mergers. Examples are:
Microsoft and Nokia
Pfizer and Polocard
Google and Schaft
Question 3
There are different advantages of IJVs. These benefits include enhancing industry consolidation. Through acquiring of the new partners of operation, the companies can get new talents and new management skills. The companies also receives new resources from the acquisition and mergers. Enhancement of expansion, and acquisition of new technology among other advantages associated with IJV. However, some disadvantages are associated with the IJVs which include high overhead costs and increased and losing control over the firm. When a company ventures in a new place, the control of the branches is reduced and a lot of resources are wasted in the process of coordination of these branches activities although the benefits accrued overdoes the resulting disadvantages.
Question 4
The reason companies prefer acquisition is due to capital challenges while reason they prefer IJV is to increase investments. The other reason companies prefer acquisition of a method of the international venture is because it saves the costs of operations through economies of the scale. The tools of and the management of the acquired business can be retained and this becomes critical to customer maintenance. It is better compared to the alliance because through acquisition the acquiring company gets more control over the enterprise. The main variables that influence the choice is the size of the firm and its objectives. IJV is most likely to benefit the firm because it increases market and investment. The choices that will best help the firm is acquisition because the form will have control and few expenses are incurred due to retention of tools, customers,and management.
Question 1
The forms of communication the firm applied was so successful because they facilitated easy decision making and reduced resistance. The two-way communication was necessary because the management can get feedback from employees. The only barrier to these forms of communication is a misunderstanding of the message. In case the message is misunderstood, the firm could face resistance to the plans. Therefore, the method of the deliverance of the message to the employees should be wisely selected. They should carry it out in a manner that aims at reducing any form of resistance that can result from the decision.
Question 2
The essential content of this information is to let the employees understand the fundamental decisions that the company is making on their behalf. If the business makes a decision without informing the employees, they would misunderstand the decision and think that the decision is a risk to their careers, in other words, that they may lose their jobs. They need to know the future of the company. It makes a difference by reducing resistance and easy decision making. It makes the employees see the logic of the decision taken by the management on their behalf and the benefits it will bring to the company.
Question 3
There are different forms and channels of communication that can be held in an organization. There is a horizontal and vertical form of communication. Vertical form of communication is the one happening in our case, and it entails transmission to and from a different level of organization. However, it was not only necessary for the information to come from the top. Organization should have common sense approach communication thus anyone in the organization can provide the information with equal success if only the message has what employees want to hear.
Works Cited
Cavusgil, S. Tamer. International business. Pearson Australia, 2014. Print.
Dong-zhao, G. A. O. "An Analysis of Merger between Transnational Corporations in Globalization Trend." Business Economy 18 (2009): 35. Print.
