Discussion:Risk management plan
Introduction
The risk management plan is established, maintained, and controlled by the project manger of a business entity or an organisation. From research, risk involves positive or negative gain. There is no business entity therefore have the mandate of addressing the various causes of risks and develop strategies that will have a long-term benefit to the business. When company A and B agrees to merge, numerous challenges and benefits are generated from the combination. This paper addresses the risk management plans that assist business entities involved in acquisition and merger (Boehm, 2011). The merger between company A and B exits due to the individual company's intention to reduce competition and increase profits through increased production.
The business entities associated with the merger processes have to agree on various rules and regulations before signing the final agreement. It is however ethical to adhere to the set rules and regulations to encourage the benefits of the merger. The ethical issues that are rampant in the business fraternity involve businesses that are closely related. Consequently, business partners and affiliates can at times undergo through several differences but these differences are settled through mutual cohesion and understanding. Ethics generate the most influential aspects of business administrations in relation to customer relations, governance of employees' rights and respect of the business administration by the customers and employees.
Research shows that the implementation of fair and reliable ethics in business administration results to positive results (Chang, Tong & Ameen, 2010). The business gains from the effective connection between the customers and the business administration and between the suppliers and the administration. The profits are therefore increased through proper implementation of business ethics and improvement of the relationship between the business, its clients and the various suppliers. It is therefore advisable to utilize the necessary ethical obligations
in maintaining a healthy and favorable business acquisition.
Organizational growth and performance is influenced by, among other issues, strategic management, and changes in organizational structures, policies, management and standards. However, the process of implementing new ideas, concepts and business processes has to be efficient and effective in order to bring all the expected improvements (Boehm, 2011). A number of companies have undergone through management, strategic and policy in changes in order to remain competitive, expand market reach and counter existing competition. The state is one of the organizations that spearheaded organizational changes in its management, mergers and acquisitions and advancement of its marketing strategies in order to expand sales and profits. The report reflects on strategic issues affecting the company, including elements of the industry and the company's financial health, performance and challenges. This paper explores strategic management and risk management planning involved between company A and B in their merger.
Ethics have various meanings and relations with respect to business administration. However, the relationship between different businesses and organizations determines the sense of what is wrong and right. The forces and basis of societal connection between different businesses forms the concept of business ethics (Chang, Tong & Ameen, 2010). The decision-making of the various businesses should therefore be made with the consideration of business ethics and the rules and regulations set by the state or government. The laws governing the business entities should be well established by the individual states or governments in setting up adequate business relations. The entire operations of a business are required to fall within the brackets of the set laws and within the individual rights of other businesses and clients. Due to the rise in the international market and presence of globalization, the ethical considerations in business have been modified to meet the numerous global standards.
The Company must intensify its role in satisfying its customers, especially at a time when competition seems to intensify each minute. Customers are not only satisfied by the prices and product quality, but by the way, the company has been handling its customers, relating with them and the way of responding their requests. Its employees are well trained on how to handle customers (Boehm, 2011). However, much has to be done. According to research, the business entity needs to include improvising a new customer care center through the internet, telephone communication and at strategic positions in America and others in Asia as a liability.
Internet trade and communication is an important tool in commerce, especially at a time when most customers prefer e-commerce to conventional purchasing due to the need to save time and travelling costs. Scholars state that the inclusion of web-based trade, including customized website where customers can use-shopping carts, online requests, enquiries and payments, increases the sales. Moreover, the will have to grown in line with globalization trends to increase productivity and improve on the quality of their goods and services.
The companies (A and B), must have an advantage on quality, price, and advertisement and thus consumer satisfaction. Increase in sales and the value of stocks will be increased due the public positive perception, alongside with increased advertisement programs (Chang, Tong & Ameen, 2010). The company must equal its competitors in terms of quality. However, it will have an added advantage by beating its competitors by offering the most affordable prices within its locality. There are several areas, which need be reviewed for improvement. These include the possibility of an upcoming global recession that may lead to reduced sales. According to Boehm (2011), the company's field of expertise has other business enterprises and thus the need to research and keep up with the changes in growth and development.
In conclusion, the acquisition and merger of company A and B will result in a number of changes to facilitate a cohesive understanding between the two parties. From research, risk involves positive or negative gain. There is no business entity therefore have the mandate of addressing the various causes of risks and develop strategies that will have a long-term benefit to the business. When company A and B agrees to merge, numerous challenges and benefits are generated from the combination. However, the process of implementing new ideas, concepts and business processes has to be efficient and effective in order to bring all the expected improvements (Chang, Tong & Ameen, 2010). A number of companies have undergone through management, strategic and policy in changes in order to remain competitive, expand market reach and counter existing competition. The state is one of the organizations that spearheaded organizational changes in its management, mergers and acquisitions and advancement of its marketing strategies in order to expand sales and profits.