Paper Sample on Strategic Insights: Business Integration and Leadership Dynamics

Intorduction

Business integration is an essential aspect of business expansion and consolidation of grounds for higher flexibility and strength in terms of market position. As the name suggests, the process needs adequate consensus and planning for a successful merge. The Giant Marketing Group is looking to improve its stage in the product distribution business and is looking to insource it's logistical and trade processes for improved flexibility and access to the global market product designs and quality. Therefore, the company is looking to acquire a clearing and forwarding for logistical support and a Trading Company to reduce the cost of production. With business model and culture differences, this proves to be a challenging plan that needs adequate planning to implement this merge successfully. In this case, Horizontal Integration is the best strategy to be implemented by the company, and the process will need adequate strategic leadership to help oversee the transaction through mergers and acquisition strategies. This merge report will focus on strategic leadership, functional level analysis, global strategy, the business-level strategy, and cooperate level strategy in the integration strategy and process.

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Strategic leadership

With the complex nature of the transaction, a successful merge in leadership would be the first step to success. In this case, the company needs to be smart in the leadership integration strategy used. In this case, due to differences in the industry of operation, there needs to be minimal employee transfer. Hence, with the focus being on the marketing perspectives of the various companies to increase business, there is a need for marketing executive personnel transfer to improve the sales and marketing abilities of these companies (Gond, Grubnic, Herzig & Moon, 2012). In addition to the marketing perspective, there will be a need to transfer the company's accounting standards to the two companies. This will be vital in streamlining operations and ensuring the resources needed for the merge are made available on time. In addition, with limited interest in transforming the company's field of operation and standards of operation, the company will transfer crucial human resource management capabilities to help in the recruitment of new staff and oversee training and employee skills development and social welfare (Elia, Maggi & Mariotti, 2011). This is important in improving work output and happiness levels as there are conditions of mixed reactions in the employees' perspectives concerning the acquisition and merger. Therefore, with these three elements of the business in the ground in the early stages of the merger, a transition strategy can be implemented to the respective companies. Top leadership and functional level leadership changes need to be avoided to keep the company operational while adjusting aspects of the business that need to be fixed to match its strategic needs.

Functional level strategy

Giant Marketing Group aims to achieve improved levels of control over the production process and life cycle. This aspect makes the company's interests limited in the merger and acquisition strategy. In this case, there is a need to make minor changes to the respective organizations to help avoid significant influence that can affect these companies' operational capabilities (Vu, Shi & Gregory, 2010). In this case, the company will need the services of both the top operations management leadership to maintain the infrastructure and networks owned and serviced by the company. With this critical change, the company will have access to the operation dynamics and culture of the respective companies and the acquired organizations. The information will be vital in designing a working strategy for integration, especially for the aspects that are away from the company's field of specialization (Gond, Grubnic, Herzig & Moon, 2012).

As the company needs these two companies for the smooth sourcing of products, there will be a need to adjust the merchandising and product distribution perspectives of these companies. It is essential to consider that despite the changes needed being minor, the company's operation ability can prove to be detrimental to both companies of not moderately implemented. In this aspect view, in terms of operation, the human resource manager needs to work in close collaboration with operations managers from the two respective companies to help successfully identify the human resource and operational needs of the merger process (Davydov, 2001). Finally, functional adjustments will major in marketing dynamics and supply chain handling. Hence, the human resource manager will identify the specific needs and notify the management for debate and approval with the help of knowledgeable companies and industry players.

Global strategy

Based on the merger strategy specifications, the company aims to expand to new markets and improve its mobility and ability to service new customers beyond the current geographical boundaries. This merger strategy intends to introduce the company to new connections and suppliers globally, as the company already has a market distribution base, a clearing, and forwarding, as well as a logistical company, which proves to help the Giant marketing group to save on the operational cost and have the upper hand in the negotiations due to the benefits of economies of scale (Pondeville, Swaen & De Rongé, 2013). Therefore, the global strategy involves the company enjoying low product prices due to the benefit of the economies of scale. In addition, the company aims to double the two companies’ capacity by advancing with other international suppliers for a variety of other products and goods.

However, if there is a need, the company can forge alliances with suppliers directly to influence product design and quality. As noted in the operation period in the marketing industry, the company lacked reliable suppliers to supply the market with quality goods and ensure a stable supply chain and inventory support needs (Pondeville, Swaen & De Rongé, 2013). In this case, the company’s international strategy involves the mitigation of the operation inefficiencies caused by inadequate control over the trade process.

Business level strategy

This aspect is primarily concerned with the company's operational dynamics by the influence of the merger. In this aspect, the company's operations will not be significantly influenced by integration. However, with brother companies in the market, the company will need to implement a collaborative strategy to improve culture and skills transfer within these three operations. According to Elia et al. (2011), this strategy proves vital in maintaining minimal interruptions in the company’s operation dynamics (Elia, Maggi & Mariotti, 2011). The business-level strategy is a vital aspect of the transaction as it is the determining factor for the success of the merger process.

The above can be attributed to the aspect that it is the aspect through which the two companies' interests are addressed. In this case, the company needs to adopt a neutral strategy to grant the two subsidiaries some level of autonomy in operation and transactions. These subsidiaries will avoid competition with the company while resuming their operations in logistics and international trade facilitation, respectively. In this case, the Giant Marketing group will only need to take care of marketing and communications while facilitating transactions completed by the company (Vu, Shi & Gregory, 2010). This aspect proves to be vital in providing a sense of direction for operations to avoid backlashing roles and responsibilities and maintain high output in terms of revenues generated.

Cooperate level strategy

Finally, the cooperate strategy will be the need for a mutually accepted memorandum of understanding concerning the operation of the two companies for success. Hence, considering the importance of the transaction's importance in lowering the cost of production and the general cost of products, there will need an acquisition strategy for the two small companies (Henri, 2006). This level of transaction type will prove important in avoiding future conflicts of interest and aspects of competition-related aspects following the anti-trust laws that limit suspicious transactions that show signs of customer predation practices (Elia, Maggi & Mariotti, 2011). This type of transaction will be vital in transforming the acquired organization into a giant company due to procedural changes to be implemented in their management and expenditure priorities. In addition, this move is motivated by the aspect that these companies are small to middle-scale companies that have had problems with making a profit for a long time, hence, the need for new management to spur a culture and systems change.

The company will need to stress the strategic importance of the companies to our company; hence, the need to acquire and save their companies from closure. In addition, due to the debt condition at Remota Logistics, the company will need to acquire majority stakes to control the company's spending and critical management problems to save Remota from closure. As the decision is motivated by the current economic conditions, the decision for acquisition is necessary to cut the cost of operation and improve customers (Elia, Maggi & Mariotti, 2011).

References

Davydov, M. M. (2001). Corporate portals and e-business integration. New York: McGraw-Hill.

Elia, S., Maggi, E., & Mariotti, I. (2011). Horizontal, vertical, and conglomerate investments in the Italian logistics industry: drivers and strategies. In the European Regional Science Association Conference Papers (Vol. 10, No. 1, pp. 555-572).

Gond, J. P., Grubnic, S., Herzig, C., & Moon, J. (2012). Configuring management control systems: Theorizing the integration of strategy and sustainability. Management Accounting Research, 23(3), 205-223.

Henri, J. F. (2006). Management control systems and strategy: A resource-based perspective. Accounting, Organizations, and Society, 31(6), 529-558.

Mahama, H. (2006). Management control systems, cooperation, and performance in strategic supply relationships: A survey in the mines. Management Accounting Research, 17(3), 315-339.

Pondeville, S., Swaen, V., & De Rongé, Y. (2013). Environmental management control systems: The role of contextual and strategic factors. Management accounting research, 24(4), 317-332.

Vu, D. A., Shi, Y., & Gregory, M. (2010). Brand and product integration in horizontal mergers and acquisitions. European Journal of International Management, 4(1-2), 79-119.