Plan For A New Strategic Business Plan

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Report to the Board
After the agreement between the two companies to merge and establish a new organisation, the need for a new strategic business plan is imperative. The massive majority of the newly-merged companies failed to reach both their financial and strategic goals and endure in an arguably competitive business world, because they lack of an effective plan, which will consider the tremendous changes that took place for both the acquiring and the acquired company and which will assure the smooth integration of practices and policies within the new organisation (Marks and Mirris, 2000: 40). Therefore, a company should be sufficiently prepared to encounter complications that may arise, determine carefully its new strategy and…show more content…
Despite the belief of managers that culture neither could interpret organisation’s profitability and success since it cannot be measured nor could be changed once it was established, researches increasingly have shown that culture is organisation’s cornerstone and essentially defines its health (Fisher & Alford,2000: 206). Management team should first and foremost identify and assess the points of converge and diverge of both organisation’s culture and utilize these evidence to mould a new organisational culture, which will eventually designate its orientation towards the -often called- ‘soft issues’, such as communication, relationship building and collaboration. Furthermore, management should be aware of how the new culture will affect the human capital and to reassure that during this process all company’s members are involved, feel valuable and integral to the success of the devolution (Hoerr, 2009).
Human Capital
Arguably, organisation’s new workforce and issues related to it are pivotal. Inevitably, employees’ fear of uncertainty concerning their future in a new work environment may lead them to be reluctant to upcoming changes and mistrustful to company’s new objectives. In turn, aggressive and suspicious employees could lead to low levels of productivity and consequently declining profitability. Therefore, relationships build on trust between the new management and
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