Business organizations are established to maximize profits. However, there are several business organizations in the globe, which has led to intense competition. Competition has increased in the global economy due to the nature of external business factors, which influence the operations of companies, but they do not have direct influence over them. Increased competition in the market has led to the development of diverse survival strategies by companies such as mergers and acquisitions.
Companies merge to share their resources equally and fairly towards the achievements of the goals and objectives of respective organizations. Organizations must consider their goals and objectives before considering merging with any company in the global market (Kathlene, Voss, & Belammy, 2009). Generally, companies in the same industry may merge to gain a competitive advantage and curb operational uncertainties effectively. This is a project introduction plan on an internet-based company that expects to merge with a company of the same size, with equal resources to increase their efficiency in operation, increase levels of returns and gain competitive advantage in the respective market or industry.
Background information of the company
The company is one of the most successful small-scale internet-based organizations in the industry. Although it has employed 25 employees, it only has an annual income of $35 million as gross revenue. The company has a growth strategy, which it expects to realize its planning in the 60 days. Business organizations operate to increase efficiency and increase their levels of returns. Companies can increase their returns levels by achieving their growth strategy.
High profits are associated with firm sizes. It is perceived in the global market that large firms accrue high profits due to the number of resources they can mobilize towards the achievements of the goals and objectives of the respective company.
The size of the company has not enabled the management team to employ highly qualified and experienced employees or human resources. Furthermore, the company has not been able to mobilize adequate resources that can be used to develop and establish effective operational methods. Currently, the company has integrated its systems, infrastructure, and databases to necessitate an effective operation. Moreover, the data being handled by the company is not effective to enable the company to establish a data warehouse. The company intends to merge with a multinational company.
This will force the company to review its needs and those of the partner company to ensure that the management integrates the goals and objectives of both companies, and ensure they are achieved within the stated deadline. Moreover, the needs and preferences of the companies should not conflict because it is important towards efficient and effective management of the companies upon merging.
Business activities the company is involved in
Generally, the company is an innovative internet-based. The company is involved in the generation of new business ideas and modifying existing ideas with an aim of improved quality operation. Internet-based companies are mainly hosted online and most of their activities are conducted virtually. Virtual operation and management of business ventures is an important factor that organizations operating online must consider. Innovation is one of the most dynamic natures of operation in the global market. Innovations changes due to technological changes and changes in the tastes and preferences of consumers. Innovative companies must employ highly qualified and flexible human resources to effectively respond to the dynamic changes in the business environment (Kathlene, Voss, & Belammy, 2009).
Speculation on outsourcing and offshoring opportunities
Growth is a strategy that several organizations have in the global market. However, there are several challenges that companies must address before initiating a growth strategy. The growth of an organization affects several aspects of the structure of the way of operation of an organization. Organizations may develop a growth strategy but not achieve it within the stated deadline due to several setbacks.
There are several resources that an organization requires to coordinate effectively to achieve its goals and objectives. However, the most important resource is human resources. Human resource is an important factor in the management and operation of an organization because human resources are responsible for the development and implementation of strategies within an organization (Kathlene, Voss, & Belammy, 2009).
The growth strategy of the company will force the management team to change their preferences and human resource system to enable them to achieve the strategy. Moreover, growth may lead to changes in goals and objectives, and way of operation. A large organization requires a large and competent human resource team. Although the company will include employees of the partner company, it will have to retrench and recruit other employees. This will enable the company to respond effectively to its needs and demands (Myers, Mahannah, & Prentice, 2011).
The organizations will have to review the quality of their existing human resource team and consider the goals and objectives of the two companies to ensure a successful merger. Generally, employees whose duties and responsibilities do not serve the interest of the merger will be retrenched to improve efficiency. Furthermore, the company will have to employ new employees who have adequate knowledge of mergers and those that have experience and knowledge in the management of large or big organizations. This will enable the company to reduce its training costs as it will apply for job training to enlighten other employees on new roles and ways of operation due to the increase in size (Kathlene, Voss, & Belammy, 2009).
Implementation of the merger
There are several strategies that organizations may initiate to grow or increase in size. However, the company has decided to merge with one of the multinational companies in the industry. A merger involves equal sharing of resources towards the achievements of the goals and objectives of respective companies. Merger leads to changes in the goals and objectives. Companies that have merged expect to continue with their organizing projects and achieve their respective goals and objectives (Kathlene, Voss, & Belammy, 2009).
Organizations have different projects within their portfolios, which are aimed at enhancing efficiency and enabling an organization to succeed. The merging will lead to the creation of a project-based organization managing multiple projects because individual companies will expect to continue with their projects, which will lead to the management of multiple projects by the company. Project management is one of the most challenging practices in the operations of businesses (Myers, Mahannah, & Prentice, 2011).
After merging, the organization will have to share the services and knowledge of its management team to ensure that the overall goals and objectives of the newly created company are achieved within the stated deadline. Furthermore, the individual projects, goals, and objectives will serve as short-term goals and objectives of the company, which will assist in the achievement of the overall goals and objectives of the company (Myers, Mahannah, & Prentice, 2011).
Different models can be used in implementing strategies or change. A merger between the two companies is changing because it will affect several aspects of the organization. This might be resisted or accepted by the employees of the respective companies. Therefore, the companies must prepare their respective employees for the change to ensure smooth and effective implementation (Kathlene, Voss, & Belammy, 2009).
Managing multiple projects is a challenge that several organizations have not been able to handle, which has led to heavy losses and the closure of some companies in the global environment. Several factors have led to the collapse of companies managing multiple projects. However, the main reason is the decentralization system of operation because it does not aid ineffective management and supervision of the projects (Kathlene, Voss, & Belammy, 2009).
Organizations managing multiple projects require developing and establishing an effective and appropriate Project Portfolio Management System. Generally, the Project Portfolio Management System enables organizations to centralize their operations and management of projects, which is important towards the achievements of the goals and objectives of respective companies (Myers, Mahannah, & Prentice, 2011).
The company will have to develop and implement an effective and appropriate Project Portfolio Management System. There are several reasons and benefits that the company will accrue upon developing and implementing an effective and appropriate Project Portfolio Management System to ensure the implementation of the change through a hybrid model or using a hybrid model. Implementation of the Project Portfolio Management System will enable the organization to review risks associated with individual projects, which is important towards risk management and successful completion of individual projects within the portfolio (Myers, Mahannah, & Prentice, 2011).
Secondly, the implementation of the Project Portfolio Management System will enable the company to closely monitor projects within the portfolio, make necessary changes and drop unrealistic projects. This will ensure that the company implements projects that contribute to the achievements of the goals and objectives of the company (Kathlene, Voss, & Belammy, 2009).
Organizations have limited resources, but they are expected to compete for the resources and use them in the achievement of unlimited goals and objectives. The Project Portfolio Management System will enable the company to centralize its operations, which will enable the management team to allocate appropriate resources to individual projects within the portfolio. Appropriate resource allocation is a challenge that several organizations are facing in the global economy. The Project Portfolio Management System will enable the company appropriate allocate resources to individual projects and achieve its goals and objectives within the stated deadline (Kathlene, Voss, & Belammy, 2009).
Conclusion
Implementation of strategies requires an effective and competent management team and human resources. Organizations have growth strategies to increase their levels of returns. However, different organizations adopt different strategies to expand, for instance, mergers. The company is an innovative internet-based company and has decided to expand by merging with a multinational company with the same resources.
Merger leads to changes in several aspects of an organization, which requires flexibility in management to ensure effective operation and management. Successful implementation of the growth strategy requires an effective management team. The company should develop and establish an effective and appropriate Project Portfolio Management System. This will enable the organization to regularly supervise projects within the portfolio, manage risks associated with each project effectively and allocate appropriate resources to individual projects within a portfolio.
References
Kathlene, S., Voss, G. B., & Belammy, C. (2009). Principles and Practice of Management. London: Cengage Learning.
Myers, D., Mahannah, K., & Prentice, T. (2011). Contemporary Management Practices. Oxford: Oxford University Press.
Appendix
Explanation
- Figure 1 illustrates the initiation stage of the project, which should be completed within 60 days.
- Figure 2 illustrates the work plan, which extends from the initial 60 days to 104 days including testing period.
- Figure 3 illustrates the integration of the data of the two companies after the merger.
- Figure 4 illustrates the work to be completed within the first 4 weeks before full implementation of the merger.