Merger and Acquisition of Ford Motor Company - Essay Example

Merger and Acquisition Mergers generally take place to improve profits, expand base or to sell off the company in order not to incur future loss. Most of the mergers or acquisitions happen to expand the company and to cross the geographical boundaries. A company interested to acquire another company has to look into every aspect of the functioning of the company. A company will have many departments and audit should be done on every departments accounts and then valuate the viability of merger of acquisition.

After audit if it is found that functioning of all the departments are healthy and profitable then a memorandum is made between the companies. Mergers can take place only when there are healthy relations between both the companies. Mergers also depend on the percentage of shares acquired of the firm. If the company to be acquired has good standing in the market, high share value and high points in the share market then we can say that a company is worth to be acquired or suitable for acquisition.

Merger or acquisition sure has its impact on the employees and share holders who are the unforeseen assets of the company. It is well known that any merger will have its pro's and con's. Some mergers happen for profit and some not to incur losses. Employees may or may not be benefited by the merger. The new mangemen6t may not provide all the facilities unlike the earlier owner. The new company will definitely try to curb miscellaneous expenses and cut management costs. In order to cut costs they may reduce number of employees working per department.

After merger employees may be asked to change their shift timings, move from one department to another etc. employees need to co-operate with the new management. Ford Motor company one of the oldest car manufacturing companies, if intending to acquire an ancillary unit or a vendor's factory, any company will be more than glad because of the whooping amounts on the deal. Ford has the best facilities to offer to its employees. Its infrastructure, its faculties, quality of management, vendor's relations financial and cordial relations will be at par compared to other companies.

Employee's satisfaction is the primary aspect of the management. For example, if Ford has acquired a company and is not providing proper facilities to the employees ands is keen on attrition then the employees must form an association and should fight for the rightful emoluments from the company. Mergers may also have its negative effects on the employees and marketing strategies then the relation between the management should be positive enough so that there is no misunderstanding between the employer and the employee.

After acquisition the new company will have their own planning strategies which might be entirely different and the employees need to co-operate and understand with new working policies and targets of the new company. Acquisition by Ford may be good for employees since it provides world class work environment and possibilities to grow personally and professionally. Public Relation department for a company has become an essential department next to HR. PR's are the face of the company since they have direct contact to the outer world and work as a medium within the company and the society as a whole.

Hence mergers and acquisitions may be a bright prospect for the consumers, shareholders and partners. References: Ford acquires Volvo car operations. (1999). Retrieved April 10, 2006 from http://www.wsws.org/articles/1999/feb1999/volv-f04.shtml. Bob Jennings. (2000). Merger mill: Ford and GM battle for Daewoo. Retrieved April 10, 2006 from http://www.drive.com.au/editorial/article.aspxid=1201&vf=1. Gubbins. (2001). NEVER BLINK. Retrieved April 10, 2006 from http://telephonyonline.com/mag/telecom_blink/index.html. Samcor. (n.d.). Retrieved April 10, 2006 from http://en.wikipedia.org/wiki/Samcor.