Master of Business Administration (MBA) LONDON METROPOLITAN UNIVERSITY at ESOFT Metro Campus, Sri Lanka
Academic Year 2014-15
MN7127ES: Change Management and Consultancy
Assessment 1: Individual Report
Strategic Change Case Study: GreenHealth-Cranberry1 Merger
ABSTARCT
This report contains the analysis of the case study of merger process of two UK based parasitical companies, GreenHealth and Cranberry. This report discuss deep inside analysis of two companies during the pre-merger stage and post-merger stage. Balogun and Hope Hailey’s Change Kaleidoscope model, Jonson’s Cultural Web Model and Kotter’s Change Steps has consider for this analysis.
Contents
1.0 Introduction: 4
2.0 Case Study Analysis
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Cranberry is a cash rich company employee count is similar to GreenHealth.
According to the case study both companies are in the merger process. During the process there are significant changers applied to the both companies. In this report pre and post-merger processes ware analyzed mainly using following change management theories and models, I. Balogun and Hope Hailey’s Change Kaleidoscope model.(Green, 2007) II. Jonson’s Cultural Web Model. (Johnson, 1992) III. Kotter’s Change Steps. (Kotter, 2007)
2. Case Study Analysis
3.1. Strategic change context in January 2012, at the start of the merger process.
Figure 1: Illustration of Hope Hailey & Balogun’s change kaleidoscope model (Balogun & Hailey, 2008)
Hope Hailey & Balogun’s change kaleidoscope model was introduced to help managers design a context sensitive approach to change within their organization. The outer ring that relates to the broader organizational strategic change context. The middle ring that shows the more specific contextual features of the changing situation. The inner ring that contains the menu of implementation options open to change agents. Clear understanding of the contextual features helps change agents to approach for their particular context. (Hailey & Balogun, 2002)
Following is an analysis of both GreenHealth and Cranberry company’s strategic change at the beginning of merger in
Change is the most crucial aspect of management. In a rapid competitive business environment, change is not only recurrent but also becoming complex. The case study Bega Cheese highlights how the firm has achieved change management from satisfying the needs of local market to being limited company of more than 50 countries globally. Through the case study, it is seen that Bega Cheese has undergone different stages of change process by implementing various effective cultural perspectives, to traditionally organizational designs concerning with structures and new forms, processes and boundaries to adapt to organizational change and eliminate resistance to change. Change is inevitable, and vital to achieve strategic objectives and competitive
Businesses are facing a dichotomy between wanting to chalk out an all-time structure and strategy for their organization, and recognizing that their world is in a constant state of flux [3]. For most of the 20th century they were largely focused on the static elements of this dichotomy. However, in the last decade changes have become more frequent and more dramatic, so much so that a whole branch of management is now devoted to the subject of change itself.
Mergers have become normal practice in the health care industry by creating a larger hospital system that provides broader services with the focus on lowering healthcare cost and being economically profitable with keeping in line with regulatory guidance. A merger happens when two or more organizations agree to join together and become one organization. One or more organizations essentially must dissolve for this to happen. Sometimes both organizations dissolve and take on a completely new name as in this case of the merging of the two competing hospitals. (McClure, n.d.) Hospitals along with health systems are following the same trend to merge with other hospitals, this movement has continue to gain momentum and appears to be the future trend in the health care industry due to high operating hospital cost. In a survey done in 2012 regarding hospital maintaining independence only 13% plan not to align with other hospitals or health care systems, while the other 87% plan some type of merger with another hospital or health care system. (Hospital Mergers and Acquisitions, 2013)
The analysis is based on the merger and acquisition between E.T Kearney and EDS. E.T Kearney is the largest management consulting group while EDS is a technology firm. The company’s merged to form a new defining entity that could combine the synergies of both firms in the quest for improved efficiency. The merger created a cultural shock which created problems that are associated with organizational culture change .In this paper, we analyze the merger and acquisition as well as the recommendations for better performance of the newly created entity.
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate
“Change can be happen without improving, but cannot be improved with out changing” These days it is becoming highly competitive environment and fast growing where all wants to be ahead and connected to the world. Since past 2 decades we have seen many inventions which created a mile stone and at the same time change our lifestyles in one way or other, which was possible because
Leading and managing change require a solid theoretical foundation. This assignment will research the theoretical elements of change and change management. Addressed will be the following: Organic Evolution of Change, Formulating Strategic Development Approaches, Leadership and Management Skills and Gathering and Analyze Data. As societies continue to evolve and changing demand creates the need for new products and services, businesses often are forced to make changes to stay competitive. The businesses that continue to survive and even thrive are usually the ones that most readily adapt to change. A variety of factors can cause a business to reevaluate its methods of operation. According to literature from the past two
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As Niccolo Machiavelli once stated "There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things" (Burtonshaw-Gunn 2008 p 21). Change is as influential as it is necessary. Adopting effective change can also be a difficult endeavor. That is why this research is examining particular change models as a way to better understand methods which can be transposed into real practice. Here, the work of Palmer & Dunford (2009) is examined, in particular the concepts of change images found in chapter two of the work Managing Organizational Change: A Multiple Perspectives Approach. Change model images essentially prepare a foundation of structure and leadership for managers, which can be decided upon based on the specific environmental factors involved in the change itself. Managers can choose particular management styles based on the specificities of the situation and the desired results.
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In order to survive and prosper in a rapid changing environment of business world, organization is often required to generate fast response to changes (French, Bell & Zawacki, 2005). Change management means to plan, initiate, realize, control, and finally stabilize change processes on both, corporate and personal level. Change may cover such diverse problems as for example strategic direction or personal development programs for staffs. In this
For any business in the rapidly evolving world of business, planning and implementing successful organizational change is indispensable. Essentially, organizational change refers to a process whereby an organization strives to optimize performance in order to achieve its ideal state characterized by high performance and profitability (Côté & Mayhew, 2014). Any business would be more likely to lose its competitive edge, as well as fail to meet the demands of its loyal consumers if it doesn’t plan and implement change. Weiss (2012) emphasizes that all organizations ought to embrace change, and it’s imperative to note that successful organizational change doesn’t involve simple process of adjustments; instead it requires appropriate change management capabilities.