Company Background
ABC Limited is one of the popular in the healthcare industry which aims to improve patients’ vision by offering new innovations on contact lenses and lens care products, pharmaceuticals other eye surgery products.
XYZ Limited is a diverse and decentralized pharmaceutical company that is committed to focusing on their key stakeholders while delivering consistently high performance. These values help them set goals based on the organization’s potential and what they hope it will become.
In 2013, ABC Limited was formally acquired by XYZ Limited with a new set of core principles such as goals or working style. Acquisition are one of the expansion tools as XYZ Limited growth strategy which involve integration to more fully utilizing the company’s resources of organization and helps to improve cost- effectiveness by reducing redundancies of two companies.
Discussion of the problem situation
In 2013, XYZ Limited completed its acquisition of ABC Limited. After reviewing on the company’s resources and implementing cost- saving campaign by reducing redundancies of two companies, the organization still can not sustain the profitability and growth even after the integration and resulted to the problem situation.
Firstly, organization believe in achieving high growth rate and profitability, there should be standards, plans and rules that can be followed by staff so that work can be managed systematically. However, high key employee’s turnover rate is one of the key elements which affect the company growth rate. Key people leave company or jobs because they are not engaged for the integration and resist of the new company. They feel job insecurity as the whole integration plan is not transparent.
Management team did not illustrate how changes can be positively accepted to both of the career growth of staff’s and strategic growth of an organization. As a result, there are many rumors inside the organization and employees think.
