Why do Acquisitions Fail Essays

Why do Acquisitions Fail Essays Why do Acquisitions Fail Essay Why do Acquisitions Fail Essay Name: Course: Instructor: Date: Why do Acquisitions Fail? Merger can be described as the integration of two or more companies to form a single but larger company. The success of the merger depends on the ability of the new company depends on numerous factors which cannot be attained without the necessary cooperation between the merged entities. Control leads to conflicts in the merger because one company views itself as bigger than the other does. Among the reasons for failure among the mergers can be attributed to the presence of condescending attitudes among the merged entities. Some feel superior due to their market capitalization of asset base hence prompting them to look down on their junior entities (Straub, 34). Such attitudes have negative psychological effects because the merged companies feel inferior to the larger companies thus affecting the level of productivity of the smaller entities in the merger. The reasons for the mergers determine the success of the mergers. Some entities fear becoming irrelevant and losing their market shares to larger entities. Fear of losing out in the market due to competitiveness drives companies to seek refuge in the umbrella of a merger. A merger promises an entity continued existence within the respective market. The larger entities on the other hand view merging as a means of becoming larger in the market. The failure of mergers can be attributed to the increase in the responsibili ties of the entity, managerial duties increase exponentially and the new organization becomes too large to mange effectively (Very, 48). As organizations form mergers, they enforce bureaucratic systems for management to ensure that all entities which have formed the new company are able to have their needs met. The new company is formed under bureaucratic systems ensure that all the interests the entities are taken care of and no single entity has personalized needs and gains to be met (Levinson, 27). As the organization ages, the bureaucratic systems are not changed hence the company is unable to stay relevant in a rapidly changing market. Obsolescence can be described as the reasons for failure in some mergers because the formed bigger entity fails to overcome its bureaucratic systems to attain growth and relevance in a market. Vested interest among the entities which form the merger can be described as among the reasons as to the failure of mergers. Control in the new merger is usually a source of conflict and disagreements as the existing entities fight for control to establish their ideals and interests provided by control over the entities. The need for control can be attributed to arrogance among the entities because either the companies do not want to be viewed as juniors of another company or they do not want to lose their control (Christensen et al, 29) Reluctance to change is also another factor, which contributes to the failure of mergers because some of the companies within the merger do not want to relinquish their traditional ways of doing things. Traditional conduct of business among the entities can be attributed to a sense of comfort as the entities seek to maintain their respective market relevance. Such creates vested interest among the entities, which still want to maintain their stature in the market. In addition, the need for a single company to maintain control over other companies has devastating effects on the business model because they are able to assert the authority to satisfy their won egos by considering themselves as in control (Badrtalei, Bates, 41). Manipulation of personnel is described as another major factor, which affects the success of a merger. The need for the larger company to manipulate workers to achieve selfish interest has negative effects because the employees lack self-drive and motivation. Hence, it becomes a norm for the larger entity to assert control by manipulating the employees to achieve its objectives; this leads to failure, which become the norm for the company until it crumbles for many reasons such as cost overruns and wrong decision-making. This is because decisions are not made out of respect to the existing agreements but are made out of individual thought due to pride to fulfill individual needs and satisfy egos. Work cited Badrtalei, Jeff Bates, Donald, L.â€Å"Effect Of Organizational Cultures On Mergers And Acquisitions: The Case of Daimler Chrysler†. International Journal of Management. June 2007: Vol 24(2). Print. Christensen, Clayton M, Alton, Richrad, Rising, Curtis Waldeck, Andrew.† The Big Idea: The New Merger and Acquisition Playbook† Harvard Business Review. 2011. Print. Levinson, Harry. â€Å"A Psychologist Diagnoses Merger Failures† Harvard Business Review, 2000. Print. Straub, Thomas. Reasons for Frequent Failure in Mergers and Acquisitions: A Comprehensive Analysis. Wiesbaden: Deutscher Universita?ts-Verlag, 2007. Print. Ve?ry, Philippe. The Management of Mergers and Acquisitions. Chichester: John Wiley Sons, 2004. Print.

Goethe - a Literary Genius

Goethe - a Literary Genius Johann Wolfgang von Goethe is the most important German literary figure of modern times and is often compared to Shakespeare and Dante. He was a poet, dramatist, director, novelist, scientist, critic, artist and statesman during what was known as the Romantic period of European arts. Even today many writers, philosophers and musicians draw inspiration from his ideas and his plays open to wide audiences in theatres. The Goethe Institut is Germanys national institute for promoting German culture around the world. In German speaking countries Goethe’s works are so prominent they have been referred to as classics since the end of the 18th century. Goethe was born in Frankfurt (Main) but spent most of his life in the city of Weimar, where he was ennobled in 1782. He spoke many different languages and travelled great distances throughout his life. In the face of the quantity and quality of his oeuvre it is tough to compare him to other contemporary artists. Already in his lifetime he managed to become an acclaimed writer, publishing internationally bestselling novels and dramas such as â€Å"Die Leiden des jungen Werther (The Sorrows of Young Werther, 1774) and Faustâ€Å" (1808). Goethe was already a celebrated author at the age of 25, which made explain some of the (erotic) escapades he supposedly engaged in. But erotic topics also found their way into his writing, which in a time coined by rigorous views on sexuality was nothing short of revolutionary. Goethe also played an important role in the â€Å"Sturm und Drang† movement and published some acclaimed scientific work such as â€Å"The Metamorphosis of Plants† and the â€Å"Theory of Color†. The later built on Newton’s work on color, with Goethe asserting that what we see as a specific color depends on the object we see, the light, and our perception. He studied the psychological attributes of color and our subjective ways of seeing them, as well as complementary colors. In so doing, he improved our understanding of color vision. Besides, writing, researching, and practicing law, Goethe sat on several councils for the Duke of Saxe-Weimar during his time there. As a well-travelled man, Goethe enjoyed interesting encounters and friendships with some of his contemporaries. One of those exceptional relationships was the one he shared with Friedrich Schiller. In the last 15 years of Schiller’s life, both men formed a close friendship and even worked together. In 1812 Goethe met Beethoven, who in reference to that encounter later stated: â€Å"Goethe – he lives and wants us all to live with him. It is for that reason that he can be composed.â€Å" Goethe Influence on Literature and Music Goethe had an enormous influence on German literature and music, which sometimes meant he turned up as a fictional character in works of other authors. While he had more of an oblique impact on the likes of Friedrich Nietzsche and Herrmann Hesse, Thomas Mann brings Goethe to life in his novel â€Å"The Beloved returns – Lotte in Weimar† (1940). In the 1970s, German author Ulrich Plenzdorf wrote an interesting take on Goethe’s works. In â€Å"The new Sorrows of Young W.† he brought Goethe’s famous Werther story to the German Democratic Republic of his own time. Very fond of music himself, Goethe inspired countless composers and musicians. In particular, the 19th century saw many of Goethe’s poems turned into musical works. Composers such as Felix Mendelssohn Bartholdy, Fanny Hensel, and Robert and Clara Schumann set his poems to music.