Introduction
The way business thrive amidst massive competition is highly dependent on how the management sees growth and progress depending on the partnership that they may form if it is deemed necessary. Accordingly, the desire of organizations to expand without the existence of necessary resources needed to make such adjustments calls for a different pattern of strategy to acquire such development. In the same course, it could be understood that merger and acquisition could be a better strategy to consider. Defining the operation of the business with the targeted partner is essential especially in determining the compatibility of the backgrounds of both organizations as they work together and as they foresee the future of their partnership. This discussion shall identify the basic factors of merger and acquisition through the Whole Foods and Amazon merger agreement.
Analysis
- Based on your research, how would you describe the merger or acquisition?
Merger and acquisition are business procedures designed to create a connection between distinct operating organizations that are defined to have a huge impact on how they operate as unified entities. The goal of this approach in business is to expand the market impact of one, if not both of the organizations included in the agreement. In entering such form of agreement, it is critical that both parties understand the benefits and risks of the process, hence making it easier for them to make a decision and face certain difficulties and conflicts along the way (Harding, et al, 2019).
One way or another, both organizations need to adjust to the culture that both entities used to recognize as individual separate organizations. This way, the merger agreement becomes solidified as it is not only the entity but also the resources [including human resources] that they would need to share to function as one business unit.
- Conduct a Human Due Diligence between the organizations that you chose to write on. How compatible are the organizations? Whole Foods and Amazon
Merger acquisition between Whole Foods and Amazon suggests that Amazon had a greater impact on how the merger agreement was formed and what specific policies were to be followed through the operation. This was good for Whole Foods. The basic goal of this merger agreement is to give Amazon more products to share with the market while also allowing Whole Foods to tap into larger target market [especially reaching out to international borders] (Banker, 2019). This gives both organizations the value of return that they both need from the agreement.
It was the culture of operation that had to change in the process of going through the agreement. The goal is to implement a set of rules that would provide both organizations a better control on what needs to be done and how things ought to be given attention to especially in the manner by which their values are extrapolated from their individual procedures of operation (Banker, 2019). While both companies have strong online presence, it could be noted that the power of Amazon to influence the market was much effective. Hence, Whole Foods adapted through the culture of service that Amazon offers which highly identifies with discounts and promotions. This course of adjustment required Whole Foods to reschedule their inventory and find ways to adjust the way they make sales to the market.
- What would you recommend the leadership of the companies do to help ensure that the company’s merger/acquisition is successful in the long term?
Balancing out each other’s strengths and weaknesses as a company is essential in determining the core values that would be adapted by the unified connection of the said organizations through merger agreement. Accordingly, those that are able to adjust to each other’s culture are able to prolong their relationship and come up with critically definitive strategies that help the marry their management strategies together and expand in specifically beneficial strategies in business (Harding, et al, 2019).
Being able to serve as complement to each other’s particular weaknesses is a critical part of a merger’s general course of success. This merger-acquisition procedure takes a great toll on how organizations are aided into becoming more effective in the way they serve and reach for the market they are designed to serve and distribute products to.
Conclusion
In viewing the case of Whole Foods and Amazon, it is evident that effective merger and acquisition procedures depend on the willingness of both organizations to offer their best to each other- allowing them to thrive within a well-developed form of camaraderie that allows them to grow as a unified business unit. In operating within an international market, it is critical that the products offered by both organizations reach the standards and expectations of the target buyers. While it does not necessarily mean that they ought to change the way they are viewed by the community or the industry they exist in, a merger agreement does require organizations to adapt and adjust to each other’s culture. This means sacrificing some of their old ways of operation in order to adapt well with the considerations they have to make in order to present a unified trademark to the market-making it easier for the target customers to recognize the benefit that their partnership brings to the table. This is very important because it increases the capacity of the market to accept and appreciate such merger agreement to have a benefit to their welfare as third party receivers of such services and products.
References:
Harding, D. and Rouse, T. (2019). Human Due Diligence. Harvard Business Review.
Epstein, M. (2005). The determinants and evaluation of merger success. Indiana University Kelley School of Business.
Banker, S. (2019). How Amazon Changed Whole Foods. https://www.forbes.com/sites/stevebanker/2019/06/25/how-amazon-changed-whole-foods/#634e8daa78dd. (Retrieved on October 14, 2019).
