The Merger

In: Business and Management

Submitted By dondonnngo
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The Merger – A Case Analysis Report

I. Facts of the Case

Peter Lundgren had taken too much coffee before the meeting with Stanley Ashton. They were collaborating as co-CEOs of Arlington Inc., a company which resulted from a merger of Arlington Oil with Duns Ford Petroleum Co. This would be an asset in the industry.

The merger envisioned a corporation in the rough-and-tumble oil industry that would achieve significant cost savings in refining, marketing, and transportation, as well as capital to fund worldwide exploration and production.

The most challenging part was the integration of two organizations has begun, which is believed to generate effective human resource integration strategy that will result to operating efficiencies.

Arlington was left with two managers for almost every available position at upper and middle management level. Prior to the merger, the top levels had been selected. Lundgren and Ashton had decided a negotiation that they could keep their most trusted executives on board.

Peter has always preferred making decisions by instinct and likes to talk o people face to face to assess if they are fit for the position, becoming biased toward some of his own executives. Ashton, on the other hand, was vey objective and has a very conventional way of making his executives pass through a series of tests. Peter was concerned in the idea that an objective process such as that of Ashton would make the best people around him leave, when they undergo all the evaluations.

II. Key Problem

Arlington Inc. has been facing a problem in creating an effective human resource integration strategy. Both CEOs have their own different and opposite ways and qualities of people who deserved the best positions, and by that it is possible that they will find conflict in going through each other’s decision making.

The merger of the companies…...

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