The Success Of The Merger - 1818 Words

Background The inception of Bancolombia has been through a myriad of arduous processes in order to emerge as Colombia’s largest bank by assets (bnamericas, 2014). From its humble beginnings as Banco Industrial Colombiano (BIC) to its strategic acquisition with Banco de Colombia (BC), which became formerly known as ‘old’ Bancolombia. The success of the merger was largely attributed to Jairo Burgos who later becomes the integration project leader (IPL) of Bancolombia-Corfinsua-Conavi integration process, also officially known as Bancolombia (Cajiao, 2011). Introduction Success in a merger and acquisition (MA) can be measured in various ways (e.g. financial ratios or value creation). However, this essay will mainly attribute success to human resource management’s (HRM) positive integration of culture and strategy. Therefore, this essay seeks to discuss and analyze the case study critically in order to bring light into the success factors of the merger, which includes emotional empathy, and operationalization of values, factors of failures and attainment of management talent and new capabilities. Failure of Mergers Mergers and acquisition has always been a huge challenge in business. However, in order for businesses to thrive and succeed in competition, it has become one of the most important strategic tasks to undertake. According to Briscoe, Schuler and Tarique (2012), the two main reasons for the failure of mergers are the negligence of the role of human resource (HR)Show MoreRelatedFactors Influencing the Success of Takeovers and Mergers Essay example1283 Words   |  6 Pagesreference to the item on telecoms and your own research, to what extent do you think that leadership is the main factor influencing the success of takeovers and mergers? Leardership is influencing and directing the performance of a group members towards achieving the goals of the organisation. Leadership is the main factor influencing the success of takeovers and mergers because Staff who has strong leadership skills will motivate and insipre other employees to achieve the goals and objectives of theRead MoreRoles of Human Resource in Managing Employee Expectation for the Success of Merger8242 Words   |  33 PagesROLES OF HUMAN RESOURCE IN MANAGING EMPLOYEE EXPECTATION INFLUENCE THE SUCCESS OF MERGER ACQUISITION By KASMARIZA KASSIM A project paper submitted to Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia in fulfilment of the Requirements for the degree of Master of Human Resource Management 1 TABLE OF CONTENT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES ix xiii xiv CHAPTER 1 : INTRODUCTION 1.1 1.2 1.3 1.4 1.5 1.6 Background Study Problem Statement ResearchRead MoreMerger Between Daimler And Chrysler1465 Words   |  6 PagesThe merger between Daimler and Chrysler was expected to be a success in the economy especially with the current trend and demand in the automotive sector. Daimler is considered one of the most successful and profitable automotive companies across the globe. Founded in 1893 as the Daimler Motor Syndicate Ltd, its growth and expansion in the automotive sector has been facilitated by the need to meet the interests and needs of its key stakeholders (Barnard, 1998). The vehicles that are manufacturedRead MoreDo Mergers Add Value to Business1527 Words   |  7 PagesDefinition of Mergers Merging Intelligently Steps for Merger Success Reasons for Failure in Mergers Analysis TATA group the market Pioneers Tata Steel Tata Teleservices Do Mergers add value to business? Introduction In a times where there is cut throat competition for even the biggies, organizations who have been playing since many decades and the rulers of economy it became a concern for them for how to survive? Here in cropped up the Idea of MERGERS. Well, whether a Merger addsRead MoreWhat Merger Is The Merger For The Company Of The Southwest Airlines Acquiring The Airtran Airways Essay1390 Words   |  6 PagesIntroduction A merger is a form of business that is made up of two or more businesses operating in the same industry coming together to better their services. One of the recent mergers that have happened is that of the Southwest Airlines acquiring the AirTran Airways for several reasons. On making this important acquisition, it is very clear that the operations of the services offered by the airline will expand to different parts of the world with some changes being needed in the parent airlinesRead MoreThe Role Of Organizational Leadership And Human Resource Professionals1342 Words   |  6 Pagesduring a merger. According to Cartwright Cooper (1993), â€Å"cultural incompatibility is†¦a cause for poor merger performance. Rather than integrating, the two cultures collided, which†¦resulted in low morale, poor work quality, and declining financial performance...† This paper will focus on the challenges of mergers; discuss the roles of organizational leadership and Human Reso urce professionals. Additionally, this paper will discuss how Human Resource professionals can overcome mergers challengesRead MoreCulture Is The Most Effective Culture994 Words   |  4 PagesOne of the most challenging aspects of the merger is determine which culture is the most effective culture to move forward with. It may be from one of the companies, a new one entirely, or even a blend of the two. It may be a large amount of hard work to create an entirely new culture, and there is a low probability of success, too. The easiest and most straightforward solution is to pick one of the company’s cultures as a host culture, and merge the other with it. For instance, Philip Morris/GeneralRead MoreThe Purchase of MBNA by the Bank of America736 Words   |  3 Pagesseen many company mergers because of the bad economy. Many of the mergers lead to culture clashes and in the end fail. However, in 2005, Bank of America announced its $35 billion purchase of MBNA a credit card giant, many believed this merger would join with the pile up of those done in by cultural differences (Robbins Judge, 2009). Although these two companies were different in many ways and the cultural differences were a recipe for disaster, the employees agree the merger has worked (RobbinsRead MoreImpact Of Mergers And Acquisitions On Credit Unions1138 Words   |  5 Pagesof mergers and acquisitions on credit unions as it applies to the principles of money and banking. Specifically we will review the impact of the merger between E A Credit Union and First Community Federal Credit Union. Mergers and acquisitions are very common in today’s financial environ ment. According to the Glenn Christensen (2015), there has been an increase in approved mergers again this year, June 2015 over June 2014. Not only are there more and more mergers, the size of the merger isRead MoreUnit VIII Final Project Essay1011 Words   |  5 PagesBehavioral Resistance and a Smooth Merger Michael Martin Organizational Theory and Behavior BBA 3451-13L Professor Flores January 18, 2015 With this merger, and the total integration of the smaller insurance company into our company’s current organization structure, the focus naturally turns to continued revenue, operational synergies, and even new service concept. However, we must not lose sight of the most important element of a merger—the adjustment the employees must