Group Formation Journal
Question 1
The strategy requires attaining the execution of synergy between business units and functions. This serves to explain why most corporations undergo subsequent reorganizations after the acquisition. It is, however, evident that acquiring some form of synergy can be a difficult task to hurdle, thereby making no point of acquiring another firm. The tendency to achieve synergy often depends on the strategy being used to implement the functions. Organizations require conducting multiple synergies to achieve vertical or horizontal growth in their operations (Henman, n.d.).
The company adheres to the policies as a way of ensuring that they achieve efficiency coming from marketing, capital investment, and synergies of management. The corporation is in efforts to gain benefits of scaling their business. Despite that the company is aiming for a merger as an expansion strategy, top executives may be much focused on financial synergy where there is a high flow of cash in a single unit while reducing the flow of cash in a different unit (Henman, n. d.). In this perspective, there is no point of conglomerating further activities that traverse across various businesses. These businesses are known as subsidiaries because of the nature of their “holding corporation” of the company. Management value is an example of selling and purchasing corporations that do not focus much on gaining the significance of synergy.
Question 2
The corporate culture established by the founding group and its management both in the middle and the upper can be altered. Organizational culture bases its ideology on the structure of the corporation, thereby considering leaders as a pillar for a solution of any outdated culture. The leadership model within a firm is an excellent model for establishing a culture within an organization (Kuppler & Kuppler, 2015). This model concerns taking into account and addressing issues of employees within an organization on a serious note and addressing them in relation to their level of performance. Leadership changes require managers and leaders to define the cultural change required by society to induce a change in the organization (Kuppler & Kuppler, 2015). Changing the culture of an organization also requires recruiting employees who have the desire to change and implement change within the organization. Good performing individuals can be appraised and praised to instill peer pressure with other employees who will later foster the company towards the desired form of the corporate culture.
Reference
Henman, L. (n.d.). Groups as systems [PDF file]. Retrieved from
http://www.henmanperformancegroup.com/articles/group-systems.pdf
Kuppler, T. & Kuppler, A. (2015). The 9 Clear Steps to Organizational Culture Change. ERE Media. Retrieved 22 September 2016, from http://www.eremedia.com/tlnt/the-9-clear-steps-to-organizational-culture-change/