MBA 699
9-1: Merger Integration Report
SNHU
Victoria LaPean
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Guiding Coalition
The human resource manager, Stan, should be involved in this process, as the scenario
indicates his vast knowledge of the project. Stan's previous involvement in a similar process and
his eight years of experience at the company make him well-equipped to contribute. Therefore,
Stan's experience allows him to understand the outline and identify what works and what doesn't
in this scenario, making him critical to this process. His expertise will be instrumental in
ensuring the success of the project.
The current acting director is Elaine, who has been with the company for a decade and
holds a high rating of 3 out of 4. She has been in her current role for the past two years and is
known for being a bit difficult to work with, but is also recognized as a true visionary. She is
known for appreciating the diverse skills of her team members and is adept at adapting to
different situations. Given her exceptional leadership skills, we are confident in her ability to
lead the team and help identify those who will embrace or resist change. Despite her challenging
nature, she has proven to be an excellent leader in adapting to changing circumstances.
John, the research director, has been with the company for twenty years and holds a four-
star rating. He is responsible for overseeing the scientific development of the cancer drug and is
known for his unwavering determination to see tasks through to completion. As one of the
founding members of the organization, he has observed more unsuccessful mergers than
successful ones. Given his wealth of experience and knowledge, he would be a valuable asset
during this period of change. In addition to managing research and development facilities in
three different countries, he also leads a team of over 100 researchers. John's extensive
experience with failed mergers, coupled with his reliability and trustworthiness, has earned him
significant credibility with stakeholders.
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Omar, as the manufacturing director of the company, is responsible for overseeing the
production of goods to ensure continuous fulfillment of quality, production, and performance
requirements. Additionally, he conducts reviews of production analysis to verify that the
objectives and criteria for finances, quality, safety, and deliveries are being met. He is tasked
with supporting long-term operational objectives, growth initiatives, and the implementation of
advanced technologies. With three years of experience at the company, Omar currently manages
twelve production facilities and 580 hourly employees. His job satisfaction has been consistently
high during his tenure. Having joined the company following an acquisition, he is pleased with
the progress of the merger. Given his successful management track record, I consider him a
valuable part of the steering alliance.
Chris, as the sales manager, engages in negotiating contracts and promoting goods and
services to customers to boost profits. In addition, he is responsible for acting as the primary
contact for customers and clients, addressing inquiries, offering guidance, and introducing new
products. Chris oversees a team of over 100 salespeople globally and has been with the company
for a decade. His expertise has earned him a place in the leadership coalition. At a previous
company, he supervised the consolidation of two prior acquisitions. He acknowledges his
shortcomings and limitations and is recognized for his hands-on management style. In this
project, he will handle the sales team's data and evaluate the company's sales performance.
Strategy
While every firm will require a customized exit strategy, there are certain essential
elements that may be used universally. The market's share, the company's financial status, its
objectives, and its timeline are all taken into account. The organization must first set goals as part
of our strategy. This makes it an essential part of creating plans. The group will decide on a
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schedule in addition to the objectives. Making the most of time might afford the business more
negotiating power. It is also necessary to assess the industry's current situation. A strong leader is
present in another aspect of the business plan. As a result, the contract may be significantly
impacted by great leadership. Establishing the chain of command is a collaborative task. This
will contribute to the transition's increased success. The principles of business decision-making
ought to be outlined in this strategy.
Building Trust
By employing these strategies, each member of the guiding coalition team may showcase
their proficiency in their specialized fields. Knowing that colleagues can do their responsibilities
efficiently can lead to credibility and expertise. Establishing your authority and subject-matter
competence inside your organization is one way to foster trust.
Employee Attrition
Being a business development manager reporting to the vice president (VP) of business
development at one of the largest life sciences organizations in the Midwest, currently, I am
working with the strategic planning team to assess the current data to make recommendations to
its board of directors regarding the organization’s exit strategy. I have started creating my plan
for the organizational change and selected members for the guiding coalition. The next task is to
help determine the value of the organization’s assets to the potential acquirer. One of the core
strengths of the organization lies in the value of its talent. Potential buyers in this industry want
to know that the organization that they acquire is going to be able retain their valuable
employees. So, the VP has asked to analyze the human resource data in order to determine what
the organization is worth. This includes taking a close look at the organization’s human
resources, analyzing the attrition data, and making predictions about employee stability in case
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of an acquisition. The organizationBhas been collecting informationBabout its employees since its
inception in 1999. In order to understand recent trends in the organization's workforce, I will
analyze this employee data. My analysis will look at employee attrition and retention and will be
included in this report. This will provide a clear picture of the organization's workforce to help
anticipate its perceived value with potential buyers.
Employee Demographics
When looking at the current employee demographics, the company has a good mixture of
male versus female. There are 1,233 current employees and out of that, 732 men are working in
the company, while 501 females are employed currently. This shows that the company has a
good point of view when it comes to gender diversity and equality among the genders.
Out of the current employees, 294 are divorced, 350 are single, and 589 are married. This shows
that there is no discrimination. A majority are married but there still is a good mixture of all
marital statuses.
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Attrition Analysis
There are a few reasons for attrition within an organization, such as, lack of recognition,
poor company culture, career progression, burn out, and poor leadership, to name a few.
Generally speaking, looking at those who left the company, it does not seem to have been many
years since the last time they received a promotion, so that leads me to believe that the career
progression was not necessarily the cause of those leaving the company. Using the information
provided for the former members of the organization, the average age of those who left is about
37 years old. Again, using the data provided, the average amount of time spent at the company
before leaving, is 6.6 years.
Retention
Without knowing the exact reason why individuals have left the company, it is hard to say
for certain if the current employees will leave the company, but we can look at trends and
compare them. Of the current employees, the average time with the company is 6.6 years, just
like the former employees when they left. The average age of the current employees is 36 years
old, just like the former employees. It is hard to say if those factors are strong enough to
determine if current employees will leave as well, but it is interesting to calculate.
Actionable Steps
Without knowing the true reason behind why employees left the company, there can be a
general statement made to make sure the company has everything in a row. There needs to be a
good work life balance, and fair income. I do not believe that age or time within the industry, or
time since last promotion affects the company’s retention.
Alternative Buyer
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I am a business development manager reporting to the vice president (VP) of business
development at one of the largest life sciences organizations in the Midwest. The owners are
ready to sell the organization and have identified a potential buyer. I have been working with the
strategic planning team to ensure that the acquisition process is as smooth as possible, and all
necessary documentation is in place. I have also been asked to recommend strategies to help lead
the organization through the changes that will occur after the acquisition. Last week, while
planning was underway, the VP called a meeting to share that the potential buyer is showing
signs of reluctance, and the deal may not go through. It has been decided that I will research an
alternative buyer and develop a contingency plan. This contingency plan is an important part of
the strategy and final acquisition report to the board of directors. My team and I did preliminary
research into competitors in the life sciences industry to identify alternative buyers. Based on the
research, the VP has shortlisted a few alternative buyers. I have now been asked to choose and
evaluate the best option from the list and create a report about this organization’s current
situation. My team and I have also been asked to formulate an acquisition road map that lays out
the action steps and timelines necessary for the execution of the acquisition process.
Alternative buyer research report
After reviewing the list of eight potential alternative buyers, Johnson & Johnson is the
recommended buyer for our company. Robert Wood launched Johnson & Johnson in 1886 “with
his two younger brothers, Edward Mead and James Wood in 1886. Their company manufactured
the world’s first mass-produced, sterile surgical supplies.” (Our Beginning | Johnson & Johnson
Our Story, n.d.).
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Current Market
Now, in today’s market, Johnson & Johnson sells different products – the wide range of
brands now include: Nicorette, Johnson’s Baby, Clean and Clear, Motrin, Benadryl and Sudafed,
to name a few (Ross, 2024). The brands have a large range of products, but for this particular
scenario, we are focusing on the pharmaceutical and medical aspect of Johnson & Johnson. “J&J
brands are responsible for developing treatments for some of the most complex diseases, as well
as innovative medical devices and cutting-edge interventional solutions.” (Ross, 2024).
Financial Situation
When looking at Johnson & Johnson’s financials, please see below for their income
statements, cash flow and balance sheet for 2020-2023.
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(Johnson & Johnson (JNJ) Income Statement, Cash Flow and Balance Sheet 2020-2023 - Yahoo
Finance - Yahoo Finance, n.d.)
Recent Developments
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Looking over the last year or so, Johnson & Johnson have had some recent developments
to speak upon. Not only in 2020/2021 with the COVID-19 Epidemic, but more recently,
“Johnson & JohnsonBseeks first approval of nipocalimab to treat broadest population living with
antibody positive generalized myasthenia gravis. Marks first FDA submission for nipocalimab,
an investigational treatment that binds with high affinity and specificity to block FcRn and
reduce levels of autoantibodies” (Johnson & Johnson, 2024).
Buyer Rationale
The sale of our firm is set and underway. The potential candidate is Johnson & Johnson, a
well-known name in the pharmaceutical and medical space. Johnson & Johnson is constantly
developing new products and a leader in the medical space, for example, in 2021, they were
voted Best Invention, and now, seeking first approval of nipocalimab.
Acquisition-Related Tasks
The tasks and steps that have already been taken toward an acquisition since I have been
appointed to the strategic planning team:
1. Building a guiding coalition
2. Decision-making committee
3. Shift awareness
4. Worker disengagement
5. Best alternative buyer
The tasks and steps we still have to perform over the next one to two years to evaluate and
complete an acquisition:
1. Assess risks
2. Assess profitability
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Exit Strategy
Change Management Strategy
To lead our change management approach for the post-acquisition transition, we will
predominantly use Kotter's change model.
Our staff will need to develop a feeling of urgency. This will be accomplished by
interacting with and informing our staff about common problems and issues. The organization's
leaders will also ask industry participants and stakeholders to work together to address their
overarching aim of transformation. The modification will then be guided by the coalition we
already discussed. All of these leaders can provide valuable knowledge and expertise to their
teams because of their many years of service. The team, the organization, and the acquiring
organization will be impacted by their knowledge. Their responsibilities include carrying out due
diligence, creating a plan, and tracking performance, all of which are anticipated to be finished
both before and after the purchase.
Our goal is to get integrated into the new team and function as a single unit upon
acquisition. Gaining this perspective will need time and further training, but in the end, it will
streamline operations going forward. Our steering coalition will organize workshops and get-
togethers so that we can explain to our staff how and why we want to bring the shared goal
together. These outings will provide our staff members the chance to meet and greet the
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acquiring firm in order to gain insight into how they function and how each may interact with
one another in their future jobs.
Leaders must be tenacious in their pursuit of change, even in the face of impending
challenges. Management cannot be hesitant to fire an employee if they are unwilling to comply
and support the change. Key performance indicators, such as training satisfaction, manager
satisfaction, and overall change management initiative satisfaction, will be used to monitor the
development of change management. The absence rate per manager will be the key performance
indicator used to monitor staff retention. This will enable us to focus on the management
personnel who are having an impact on a certain team. The completion rate will be assessed as
the key performance indicator (KPI) for monitoring staff training. Make sure employees
complete the trainings they signed up for; if not, there may be a problem with communication
inside the company.
These KPIs will be viewed as quick victories that support our overarching goals and plan.
To make sure we are finishing these trainings on schedule, a mass email on them will be sent to
the staff. In addition, HR records that track the percentage of absences from work per manager
and are only shared with the hierarchy when necessary to identify underperforming managers.
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References
Johnson & Johnson (JNJ) - Yahoo Finance - Yahoo Finance. (n.d.). Finance.yahoo.com.
https://finance.yahoo.com/quote/JNJ/
Johnson & Johnson (2024, August 29).BJohnson & Johnson seeks first approval of nipocalimab
to treat broadest population living with antibody positive generalized myasthenia
gravisB[Review ofBJohnson & Johnson seeks first approval of nipocalimab to treat
broadest population living with antibody positive generalized myasthenia gravis].
Johnson & Johnson. https://www.jnj.com/media-center/press-releases/johnson-johnson-
seeks-first-approval-of-nipocalimab-to-treat-broadest-population-living-with-antibody-
positive-generalized-myasthenia-gravis
Our Beginning | Johnson & Johnson Our Story. (n.d.). Ourstory.jnj.com.
https://ourstory.jnj.com/our-beginning#experience-our-beginning-ch-1-1
ROSS, L. (2024, March 8).BA Complete List of Johnson & Johnson BrandsB[Review ofBA
Complete List of Johnson & Johnson Brands]. Thomas.
https://www.thomasnet.com/insights/johnson-and-johnson-brands/
