Question

identify the Failed mergers between

Bank of America acquired Merrill Lynch?

why these Alliances are Successful

Ford / Eddie Bauer?

Answer 1

ans 1=

The consolidation & integration of human capital is the most challenging step of a merger process.Obviously, the solution is to communicate plans around leadership & organizational modifications as clearly, honestly — and most essentially— as early as possible.

Yet whilst this would seem simple and almost fundamental, even the biggest corporations have failed to pull off prompt communications in the recent past.

For instance, the historic acquisition of Merrill Lynch by Bank of America exemplifies the substantive damage which can outcome from failing to communicate integration proposals adequately early. Whilst the merger was undeniably under external pressure, there were disruptions in communication which brought about major cracks in the organizational fibre of the recently combined entity. The slack integration process which waned productivity at the merged corporation — frequently an outcome of legal holdups in other transactions — is most often ascribed to cultural fissures in BAML’s case.

BAML was given the job of integrating 2 broker-dealers housing 2 distinct investment banks. Irrespective of integration scope, however, the actual deficiencies in planning & preparation became evident when, 4 months after deal close, several of the main decisions had yet to be declared. This comprised key appointments like who would operate the core investment banking clusters. Also, Merrill & Bank of America officials were still divided over whether even the ‘combined investment business will be operated utilizing the Merrill Lynch-style decentralized arrangement or Bank of America’s centralized “command & control” arrangement.’

This doubt & fear already penetrating thru the legacy Merrill ranks, in addition to a dearth of definition around the consolidated result, and the absence of proactive communications, led to the swift departure of renowned Merrill bankers which finally sucked away the prospects of the combined franchise.

The key learning here is the tremendous   significance of well-timed transaction planning & communications.

ans 2=‘Strategic alliances’ are a partnership between firms in hopes of gaining a competitive advantage. Before entering an alliance, ample thought should be given to the arrangement of the relation & who will do what in the relation.

Ford over the years has entered into several Strategic Alliances spanning multiple sectors. The Strategic Alliance with Eddie Bauer was one of branding. Eddie Bauer as a well-liked upscale brand with an attention to the outdoors. It was a sound decision by both firms to pursue this.

Ford has entered many JVs for the purposes of learning from the other firm, entering new markets & providing stability to an under-performing brand