A merger can be defined as an agreement that combines two current enterprises into one new enterprise. A merger is basically the deliberate mixture of two enterprises on generally equal terms into one fresh legal company. The companies that make an agreement to merge typically have similar points in the contexts of customers, size, operation scale, and so on. Mergers are most broadly conducted to get attain the share in the market place, reduce the business operation costs, develop the profits, and also combine the similar products generated by the companies, included as well that all of these should able to deliver the benefit the shareholders of both companies (Bergamin & Braun, 2017).

In the case study of the merger between Al Mada architecture company and Al Shurooq. In this case, even though both companies are working in the same architecture industry, but there is a big difference in the context of business operations presented by each company. Al Mada which was established in 1970 is known as a traditional architecture company that not really use the software in a big range. On the other hand, Al Shurooq which was launched in 2000 is a modern company has always been implementing advanced software to develop its business. Thus, this issue has challenged both companies and needed to be solved. This report covers up the complete situation, along with the methods to manage this challenge.

What are the possible impacts of the change on ALL stakeholders and how to deal with these impacts?

Due to there is a difference in the context of the ways the two companies are running their business, this merger has a big capability to cause some impacts of the change on the entire stakeholders. Some of the possible impacts of this merger are as mentioned below (Gaughan, 2015).

Voting Power and Weakening of Shareholder

The shareholders of both Al Mada and Al Shurooq architecture companies might will have to experience a weakening of voting power. The reason is due to the enlarged number of shares which unconstrained throughout the process of merger. This marvel is a noticeable thing within the stock-for-stock mergers, at the time the new company will offer part of its shares in exchange for the target company’s share notwithstanding at a specified conversion rate (Baglioni, 2011).

Changes in Management

One important from a merger is that, once the merger has been completed, then the new company will potentially get modified by some noticeable changes in the terms of leadership and management. Some businesses will typically conduct some negotiations, but still, the executives and board members of the new company will definitely change to some extent, no matter at the beginning of the merger, or as a future plan (Chalmers, et al., 2010).

The impacts in the performance of both companies

A decision to merge two companies will deliver some impacts that needed to be realized by both companies. The impacts will present hugely in profits, productivity, and the growth rate which will lead to the performance of both companies that merged as well.

Based on some of the possible impacts of the changes on all the stakeholders, there are some methods that can be done by both companies to manage these impacts such as (DePamphilis, 2019):

Recognize the skill gaps along with the overlaps

As mentioned in the case study, that Al Mada and Al Shurooq have a big difference regarding their style of business operations, then it is quite important for both companies to recognize the skill gaps and overlaps. Both companies should be able to communicate with the entire employees from both companies to recognize these skill gaps and overlaps and assure them that they will have a better future ahead (Ybarra, et al., 2007).

Put the focus on organizational culture

Bring together two companies is not an easy task to do, especially with the case of Al Mada and Al Shurooq. For this reason, both companies need to make sure to combine their different styles of organizational culture, which seems to be the biggest challenge from this merger. In fact, both companies have already realized that this might trigger some huge and complicated problems in the future. To overcome this situation, both companies need to sit down, discuss, and put the focus on which type of organizational culture that they both want for the new company (Bargain & Kwenda, 2014).

Collaborate

The organizational change could frequently lead the disappointment from one side or both sides of the companies. This is due to the employees who have used to with each company’s culture will have to experience a big and noticeable change. This would not be easy for them. To handle this, the two companies need to collaborate and even make an integration team to spread the workload of organizational change. With a good collaborate, then there is a big possibility that the employees from both companies will be easier to adjust themselves to the changes (Jassem, 2013).

Who should lead the change? Type of leadership style required, propose a team to lead.

The change leader should lead the change who is selected by voting as well as with the mutual understanding of the every company member, staff or the professional. He should lead the change in the company because he is the only person who has an impact on the company as well as very influential on the whole staff. Therefore, the related staff or professionals may understand his theories as well as philosophies on bringing the change in the company. Most interestingly, the change leader should do lead because it can handle the situations in very crucial conditions as well as it has strong communication skills and situation handling skills (Jogulu, 2010).

Furthermore, that leader who has the leading skills, strong communication skills, and powers, problem-solving skills, having clear insights of the future, has basic knowledge of work as well as influential on the whole staff of the company. That kind of leader or manager must lead the change within the existing company. The change leader in the company can bring new policies as well as innovatory influential things in the company that can be very effective as well as very beneficial for the company strategies, production as well as the business of the company. Such kind of persons who can lead the whole team of the company as well as can manage or handle the critical situations according to the case must have to lead the change in the company (Hambley, et al., 2007).

There are several types of leadership styles that are required in the company to bring change as well as making an environment. The types of leadership styles are as mentioned below.

Democratic leadership of The Merger between Al Mada and Al Shurooq

The democratic leadership is telling you about the leader how can make the decisions based on the interaction of all the members of the team. Therefore, the leader can make a final call as well as make sure that every member has a similar say on the direction of the project. Furthermore, it is a very effective style of leadership because it grants permission to the low-level employee to accept the authority to perform his or her job in a better way (Woods, 2004).

Transformational leadership of The Merger between Al Mada and Al Shurooq

The transformational leadership is sometimes effective as well as it always focuses on the transformation and improving the convenience of the organization. In this style, a basic set of objectives and tasks might be had by the employee, which they have to complete on a daily basis or weekly as well as monthly while the leader always pushes them out of their comfort zones or comfort circles (Dulewicz & Higgs, 2005).

Strategic leadership of The Merger between Al Mada and Al Shurooq

The strategic leadership is commonly effective leadership in which the leader intersects amongst the growth opportunities of the company as well as the main operations of the company. The leader accepts the pressure to perform the executive level responsibilities but alongside they must have to make sure that the current working condition of the company must be controlled (Vera & Crossan, 2004).

Coach Style leadership of The Merger between Al Mada and Al Shurooq

This kind of leadership is also effective commonly as well as it can be introduced or apply in our company because this leadership style is providing the environment for learning and teaching the other employees. The leader according to this leadership style will be a coach such a sports coach who tells everything to the player, encourage them to improve the skills as well as motivate them to do practice hard for improvement (Harper, 2012).

Prepare the new organizational culture to accept the change.

The culture effectively matters within the company. The culture of the company may decide whether the company will remain stable or not as well as it will grow or not. For the improvement and growth of the company, the organization and the change leaders should have to make new culture of the company and must have to make preparer them. The leaders should have to make a new culture where every employee can express their precious ideas for the growth of the business of the company, and they will be punctual (Rashid, et al., 2004).

Propose a change model that they can follow.

The main purpose of bringing a change in the company is to make the environment better where every employee can speak as well as they can express their ideas to make the company better as well as for the growth of the company (Mara, et al., 2012). In this report, I have proposed the ADKAR change model for Al-Mada and Al Shurooq. They can follow this model practically because it can bring the change in the organizations for reorganizing the company. The steps of the change model are aware of the need for change, desire to take part in the change, the knowledge on that change that how it can be brought, the ability for the implementation of this change as well as reinforcement for sustainability of the proposed change. The model will help them to bring change by having awareness of why they need such kind of changes. They can easily gather prior information or data that why they need to bring change into the company such as to improve the workability, increase productivity as well as enhance amount of the revenue. On the other side, they can also bring change to make better culture of the organization where all the employees of the company can easily express their norms. Furthermore, they can collect the most important information on the issues form the employees of the company, so it can make easy for the management to make a decision on the change.

Explain how each phase of the model may be achieved.

To manage the changes after the merger, the new company needs to do apply the process of reorganization, which will be really useful to find out the innovative value and are frequently fundamental as portion of merger integration. The 3 phases in this reorganizations along with how to achieve each of them are such as (Heidari-Robinson, et al., 2016):

1. Construct a statement regarding loss and profit

The new company needs to consider that the costs will be derived not only from the employees, lawyers, counselors, and everyone that engaged. The new company needs also to include the cost of human change along with the disruption that might wreak on the company itself. Thus, the new company should be able to recognize that this would block the company to gain profit for one or two years.

2. Understand the recent strengths and weaknesses

In this phase, both companies need to highlight the strengths and weaknesses of both companies. One of the strengths might be the responsiveness of customers, while the weaknesses that might appear are such as dispatch of preserved teams, or failing in the creation.

3. Consider various alternatives

Both companies in this phase need to recognize various alternatives in developing the new company. The reason is due to both companies will have different opinions regarding their organizing way, and thus, both companies should be able to consider each alternative and make the best decision.

How do you propose to maintain the change? Sustainability issues.

The company can face some problems in the initial phases when the company and the change leaders are implementing the change in the company. The leaders can maintain it by having or keeping the check and balance on the company strategies as well as every activity of the employees they are performing. It is a very challenging task to maintain the change because a small amount of the employees can conduct diplomatic activities in the company. The leaders should approach them as well as train them by telling how the change will give those benefits (Gowing, et al., 2006).

References of The Merger between Al Mada and Al Shurooq

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Jassem, Z. A., 2013. The Arabic origins of" celestial and terrestrial" terms in English, German, and French: A lexical root theory approach. International Journal of English and Education, 2(2), pp. 323-345.

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Woods, P. A., 2004. Democratic leadership: drawing distinctions with distributed leadership. International journal of leadership in education, 1(7), pp. 3-26.

Ybarra, M. L., Diener-West, M. & Leaf, P. J., 2007. Examining the overlap in Internet harassment and school bullying: Implications for school intervention. Journal of Adolescent Health, 6(41), pp. S42-S50.