The Global Economic Environment

1964 Words8 Pages
The global economic environment is starting to get tougher, it is a desire to ensure organizations and their managers are ready for their baptism of fire. Under the pressure of such economic drift, market conditions and profit-driven target of the organization, many organizations look to grow through diversification and vertical integration. These strategies often involve acquisitions, mergers and other strategic appliances, which often failed due to the inability to assimilate or adapt in the different cultural settings. This literature review mainly focuses on, firstly, why such strategies fail and, secondly, the suggestions for organizations in order to improve their outcomes and overall performance. Many theories and frameworks are proposed to explain how to improve the organization performance; this paper will be only covering four themes which emerge repeatedly through all the journals used. These themes are external market research to create synergy and internal organizational culture to keep strategy consistency, group work and effective communication to improve efficiency and comprehensiveness, human resources management to promote motivation and job commitment in the organization. Mergers and acquisitions involving billions of dollars have become a common phenomenon in the business world in an attempt to face a number of challenges, such as external market downturn, market restriction, and internal unsystematic management of the labors (Child et al., 2001). To
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