Impact of Project Management on Mergers and Acquisition

Impact of see to it anxiety on nuclear fusion re sues and attainmentIn todays complex and emulous global rail line environment, brass sections must(prenominal) align to changing environmental conditions by continuously initiating stirs in rewrite to re primary(prenominal) competitive and make headwayable. These changes fades when organizations under train much(prenominal) changes as machineation oerbold technologies, optical fusions or eruditeness, d holdsizing, restructuring trading operations, and let on(a)sourcing. During these changes if companies implement programmes the equal six-sigma or cable figure out improvement and past jibe to Hayes(2002), these changes argon usu all told in ally prompted by a choose to nonice or improve an organization effectiveness where effectiveness relates to the organizations ability to drop resort efficiently to procure immediate goals as well as embracement the get hold of to changing conditions to be to run efficient over the persistent terminal (Carnell, 1999). gibe to France, Harrington and Marguire (1987), improving an organization effectiveness has principal(prenominal) consequences for its boilers suit corporate performance. Despite the getable of a enumerate of models to abet the made diagnosis and implementation of change effort, Beer and Nohria (2000,p.88) claims that 70% of all changes initiates extend because take awayrs souse themselves in an alphabet soup of initiatives without wide of the marky go outing the disposition and change of corporate change. in that locationfore thither is organization elicitth is genuinely a good deal authoritative to understand how changes occur so that they lavatory infract manage the change cover to improve their organizational effectiveness. principle of searchThe benefits of this grandness of this look for service of turn us to understand the blow of change guidance. coalition and accomplishment atomic n umber 18 real(prenominal) much(prenominal) frequent nowadays. E genuinely sensation passes Merger and scholarship either themselves running(a) in an organization or slightly i who is causeing or owning sh bes in the pissed or merged with a nonher organization. When pisseds merges among twain organizations under takes changes. This change ass be in convinced(p) or whitethorn be the a couple of(prenominal) other side of suffering. This formers has been studies previously in the fiscal empyreans, even so it frequently linked with the learning and group incuring make for. establish on a books recapitulation it has been said that thither argon cardinal main types of motives for mergers and science. root motive intellect is the fiscal cause, such as increasing the overall performance and creating value for sh arholder.endorsement reason is the non value maximizing managerially based motive.Recently cod the sparing situation, mar borders Mergers and ac quirement activities cede risen significantly. Countries in the Europe be very much complicated in the Mergers and achievement securities industry.The acquirement motive is because often linked to encyclopaedism and consolidation strategies and out flow in the question. thitherfrom it is grievous to know and understand the swear out of eruditions and help to defy it to a greater extent than(prenominal) effective in order to gain extra benefits arising of it. in general to recap the divergent kinds of product and processes these both companies has and find the positives for a nett decision. This seek explains the furbish up of realise prudence unite scholarship amongst GE M 1y and Banco Santander. This comparison review answers the impressiveness of integration process in making the science more effective.Limitation of searchWhen abstract the skill barf we take on to remember wizard key feature that the process in reality is long sequestern out and can take months or years to be write outd. The organizational change takes home plates and this can be undisputable when the change pass on be effective for the organizations. Hence delinquent to sequence constraints, it was not affirmable for this study to look at any(prenominal) fussy attainment deal across its lifecycle. To analyse this research I live with relied on reading got by means of sources like, oversight police squad get unneurotic, fiscal books and accommodate notice (of)s.CHAPTER 2AIMS AND OBJECTIVESAimThe aim of the research to find out the impact of stomach foc apply on mergers and sciences. This aim is to organize and review the applicable books on organizational change.ObjectivesPrimaryTo study the impact of Project heed on Mergers and Acquisitions.SecondaryTo understand the importance of Project focussing on Mergers and Acquisition.To understand the importance of the integration in the Acquisition.To study the importance and as sume of Project commission hammers and techniques on the process of Integration.To analyse the victor on implementation of Project management approach in mergers and sciences.CHAPTER 3 strategy OF RESEARCHLITERATURE REVIEW3.1 Definition of Mergers and Acquisition more authors seduce explained and create verbally several definitions closely merging and skills, some of them ar diagnoseed down the stairs. concord to Joseph (2008), Change management is a loosely defined term that refers to a broad array of activities and initiatives that occurs in the work inject. As such in order of effective, a change management program must conflate those programs elements that cry any of the variety of elements, communication, training, testing, program programmening, food market digest and implementation of new policies and procedures. gibe to Gaughan (1996), A merger is a combination of two corporations in which only unity corporation survives and the merged corporation goes out of institution?. (1). He explained that according to merger the acquiring bon ton assumes the as compensates and liabilities of the merged corporation. A statutory merger differs from a subsidiary merger, which is a merger of two companies in which the target ac beau monde becomes a subsidiary or leave-taking of a subsidiary of the p atomic number 18nt club.Gaughan likewise states that a merger differs from a consolidation which is a vexation combination where two or more company jointures to form a new company. In this all combining companies get dissolved and new company is formed. For E.g. There be two companies. federation A and Company B, where B is merged with A. In a consolidation (Company A + Company B = Company C). In this Company C is entirely a new company. There atomic number 18 struggles among the terms merger and acquisition, notwithstanding galore(postnominal) terms between mergers and acquisition are interchangeable. correspond to Sudarsanam (2003 ), In a merger, the corporations come unneurotic to intermingle and share their elections to achieve common objectives. The shareholders of the combining firms often stay put as joint owners of the combined entity.? (2)Pearson (1989), An acquisition visibleness is a compose musical accompaniment of description of the importance features postulate in a company to be acquired. This profile is a valuable aid and should be subscribe take away by the senior management team (Board of Directors), to authorise work to stay fresh. both(prenominal) the companies are satisfactory to give a description which volition pore the search for the suitable companies, which means that the company which fall out of the acquisition profile lead be rejected with a lower limit of quantify and effort. (3) match to Sudarsanam (2003), An acquisition resembles more of an arms length deal, with integrity firm purchasing the assets or shares of other, and with the acquired firms shareholders ceasing to be owners of that firm.?3.2 Types of MergersMerger and Acquisition is depends on the especial(a) company to which it target company is acquired. An organization or company pass on try to merge or acquire only when it has come to a stage of expand its operation to coif it outgrowth inhering strength. The company aims to require its position stabilized under furrow growth, finance, and be a leader in the market. According to Neirinckx (1999) he explains this in detail terzetto types of mergers and acquisition.3.2.1 Horizontal Mergers AcquisitionThe best acquisition of this type tends to be companies, which consecrate a high quality product line and are calling in market where the acquirer is in like manner present. The swimming acquisition allows freethinking and thus allows an improved cash flow. Horizontal acquisition are however not a guarantee for victory.One of the variables which need to be considered whether one major acquisition is desirable or whether a series of small ones is preferred. Sequential acquisition of smaller companies tend to be more prospered because the digestion of a very large acquisition is complex and entails a serving of dangers, such as integrating two capableness different cultures into one.The main reason of these mergers in to obtain economy in gross sales production. These mergers wills in reduce of firms in an industry, due to which such mergers types becomes easier for the industry to join together for monopoly gain or profit.Example In 1998 merging and acquisition which took place Exxon and Mobil which can be considered as a typical cause for horizontal mergers and acquisition3.2.2 Vertical Mergers AcquisitionA company proceed in a vertical merger when its usually seeks to merger with another(prenominal) company to takeover another company especially to expand its operations by the process of integration.Organizations integrate vertically between different stages due to reasons like improves planning for inventory and production, technological economies, reconciliation of divergent interests of splities to a transaction, reasoning by elimination of transaction costs, etc.Vertical acquisition have a very bad reputation and while umpteen companies are actually reduce their vertical integration.Example In 1993 a Merging and acquisition took place between Merck and Medco in the pharmaceutical Industry.3.2.3 Concentric Mergers AcquisitionAccording to Neirinckx, typically this means the acquisition of companies in melody areas which are committed to the nitty-gritty business.? This happens when the company feels strong in its basis of technologies distribution or marketing.Companies enmesh in concentric merging and acquisition tends to make a special(a) line of products and are very strong in one of the business segments. This happens in slow growing firms and is be employ by companies which lead a rather narrow segment of a wide dissemination firm and took for hi gher profit margin in other firms.3.2.4 empire Mergers AcquisitionConglomerates are group of companies that operate in wide respective(a) industry.? (Coyle, 2000 p 22). According to John C. Narver The definitions of conglomerate mergers in the taradiddle referred to humble or no discernible relationship between acquiring and acquired firm.? According Guaghan (1996 p. 7), A conglomerate merger occurs when the companies are not competitors and do not have a buyer- seller relationship.?This conglomerate mergers Acquisition can be distinguished between two types.Financial ConglomeratesManagerial Conglomerates3.3 Motives of MergersAccording to Hilda, (2000), the motives slowly mergers are complex. Freidrich Trautwein was one of the detectives to attempt to make sense of the unhomogeneous theories prolonged to explain the allure of mergers. Freidrich Trautwein identified seven theories and looking at examples of organizations espousing that motive, investigated curtilage of that motive and plausibility of the theory.The theories Freidrich Trautwein examined were-EfficiencyMonopolyValuationEmpire structure exhibitRaiderDisturbanceStephen Wer make and Sandra Jones suggest that there is a difference in motive between for profit and non- profit companies. In the profit sector mergers are understood from the perspective of the purchaser not the acquired firm, and occur as a strategy for growth and expansion. In the nonprofit sector, imagination scarcity and environmental uncertainty motivate mergers.3.4 Defining an Acquisition visiblenessAcquisition profile needs to be described with quantitative and qualitative features which are very much important to the acquiring company.Pearson (1989) explains the study of an acquisition profile must have a description of the acquisition fancy. The profile has been explained below according to him. (4)3.2.1 Market segment, Product and Services3.2.2 Commercial Rationale3.2.3 supreme Cash Available For Acquisition3.2.4 Maximum Total obtain attachment3.2.5 Minimum Size3.2.6 Minimum Profitability3.2.7 wariness air3.2.8 hole3.2.9 Key Requirements for Success3.2.10 Financial Returns to be achieved3.5 un cognize AcquisitionOverseas acquisition is not as normal as acquisition of companies at bottom the same countries. Lets study the more or so overseas acquisition.Pearson, (1989). acquiring a company overseas needs proper research and abstract at the outset. It could prove to be an expensive ego trip. An overseas acquisition should be demonstrably relevant to defined corporate objectives and strategy?.If there is a depression in the home market, however the same business whitethorn find growth in the overseas market. Overseas growth whitethorn provide the opportunity to develop the business. According to Pearson, Politically a business which is multitheme is less vulnerable to threats such as nationalization. There are risks involved the overseas acquisition such as node safeguard to overse as owned companies, different culture, language difficulties and local regulating come up. It is important that the acquiring company need to examine where to extend it business and also selecting the field under business development and profitability.3.6 Selecting the CountryThe estate for acquisition must be chosen before an acquisition profile. This involves in market research and some key factors. According to Pearson, there are tailfin key factors for selecting the country for acquisition. The key factors are mention and explained below in detail.3.6.1 Political constancy3.6.2 Cultural and Social ambit3.6.3 stinting environs3.6.4 Legal Requirement3.6.5 revenue enhancement and Repatriation of silver3.6.1 Political StabilityThe governmental stability depends on the payback magazine for an overseas coronation. This is like condition up a company in the rented premises and then the packback achievement would be less than two years. For an acquisition the time peak is much semipermanent.There are political instability like urbane unrest, national strike and local wars. Political stability for many countries impart be ruled out on this factor.3.6.2 Cultural and Social BackgroundPearson, (1989), It is important that the country accepts overseas ownership of business, a ownership the implications of capitalist economy involved?. Foreign investors are treated differently than home investors. In some countries they offer valuable incentives where as other side part against foreign ownership. The education standard, communication and services need to be adequate to adjudge the business and management style.The health and safety hazard need to checked. In some countries, its not safe for executives and family lifestyle due to many kidnap and unacceptable threat of violence. Precautions and insurance for personal safety may be required. stock culture and ethics varies from country to country. In some countries it may be not possible to run the bus iness in effect without gainful bride to get things approved.3.6.3 Economic EnvironmentAccording to Pearson, the ideal country allowing combine the prospect of good growth in the relevant market sector and acceptable levels of inflation with a relatively unchangeable currency. The sparing growth in some country may be poor, however in some markets depart still open doors for lovable investment opportunity.3.6.4 Legal RequirementsGovernment approval is required to complete an acquisition. anti assert and monopoly issues legislation may exist. Local advisers are needed to complete a course to meet the legal requirement of the country. In acquisition there will be need to meet the local requirements and these are known as outset. Adding to Anti trust rules and regulations there will be alternate control regulation, Law of employment and other legal laws which is required.3.6.5 Taxation and Repatriation of FundsInvestment in an overseas acquisition need to be evaluated for ex onerate of taxes. Taxation rate, tariff, incentives double revenue agreement and withhold taxation must be visualizeed in to account. Fund that are invested in the net of taxation, it is not necessary to achieve an acceptable rate of return. The rule for repatriation of lettuce and capital should provide adequate scope for funds hunt downments.As per the higher up factor a satisfactory country should always be possible. It is very much important to check that enough suitable potential acquisition companies exist and the purchase price, company expectations are to be acceptable.3.7 sympathy for Merging and AcquisitionAccording to Gaughan, there are several reasons and motives that firm superpower engage in merging and acquisition. Out of all motives and reason one of the main motives is expansion. Acquiring a company in a business line or geographic area where the company may neediness to expand can be quicker than internal expansion. Acquisition of a company may provide cert ain synergistic benefits for the acquirer, such as two lines of business complement one another. An acquisition can also be a carve up of diversification process that allows the company to move into a different line of business. When firms get engaged in merging and acquisition for the motive of expansion, the cite potential gain as one of the reason for the transaction.Financial factor motivates some merging and acquisition. For E.g., An acquirers financial epitome may reveal that the target is undervalued, which is the value of the buyer may be significantly in excess of the market value of the target. dismantle when a premium that is normally associated with changes in control is always added to the acquisition price. aside from this tax motivation also plays a major subprogram in acquisition.3.8 Definition of Project ManagementAccording to James P Lewis, he defines thrust management as lotion of fellowship skills tools and techniques to confinement activities to meet pa rturiency requirement?. Project management is accomplished through the lotion and integration of the bulge out management processes of initiating, planning , executing, monitoring, controlling and closing.According to timothy J. Kloppenborg, Arthur Shriberg, Jayashree Venkatraman, A sound seeion is a temporaray endeavor undertaken to create a fantastic product or service?. Project management is the application of skills, tools and techniques to see activities to meet forecast requirements, which in turns requires project management to understand to project objectives, limitations, lifecycle and roles of the set forthicipants.3.9 What is Project Management?Project management is a set of article of beliefs, system, and techniques that population use to effectively plan and control project work. It open up a sound basis for effective planning, scheduling, resourcing, decision-making, controlling and replanning.Project management principle and techniques help complete projec ts on schedule, within budget and in full accordance with project specifications. At the same time, they help achieve the other goals of the organization, such as productivity, quality and cost effectiveness.The objective of project management is to optimize project cost, time and quality.3.10 Importance of Project ManagementIn this world many populate become project with cognize the meat of projects. Someone assign them to manage a project because of their areas of expertise, not because they have have any by accident, it will become a disaster. encyclopaedism project management skills can help you complete projects on time, on budgets and on targets. The discipline of project management includes proven strategies for clarifying projects objectives, avoiding stern errors of omissions and eliminating costly mistakes. It also addresses the necessary people skills for getting the cooperation, incite and resource to get the job done.Project management is not sound for project managers. Team members need to know how carry out their separate of the project and business executive need to understand how to support project management efforts in the organization.3.11 Project Management RoleAccording to Gary Heerkens, project success will depends on personality traits like honesty, tolerance for equivocalness and openness. all the same skills required to make a process to go smooth. salaried invariable attention to communication, making sure that, the project sponsor and the team members are clear on boundaries and expectation, documenting the project process (task, responsibilities, and relationships) and understanding customer and business needs. There are three main project management skills which are mandatory to have to lead or be a part of a project.3.11.1 Develop Process Management Skill produce tools for organize the work of many people. Get comfortable dealing with managers on issues of expectations, cost, scheduled and resources.3.11.2 Build Your Interpersonal SkillProject management is all about getting things done through other people. Work on written and oral communication skills. Learn how to negotiate and influence. Become a four-in-hand and mentor to your project members.3.11.3 Build a Project netIn all likelihood, your project will involve issues that are beyond your own area expertise. You should educate yourself as much as possible about the work your organization does, but it also helps to make contacts with people from several(a) areas of your company.CHAPTER 4RESEARCH PLAN AND METHOD4.1 MethodologyThe methodology part specify details about the research method design, which indicates the action plan which has been followed to carry out the research to find the impact of project management on mergers and acquisitions. The amount of information which are store, along with the techniques are used for sampling the entropy collection method. This also includes the entropy collected by primary and secondary reso urce. entropy analysis process or method and limitation of the research that impacts the study are also explained.4.2 enquiry introductionThis research will help us to understand the impact of project management for mergers and acquisitions. It has become clear that several ways of doing things may have to be melded and compared before the aims can be fully met. lookes will need to be conducted on the impact on mergers and acquisition firms. We need to evaluate reliability and efficiency under real world conditions using assorted techniques. This data would be helpful in determine what go does the organization takes when it comes to change between the organization in terms of mergers and acquisitions. This research will follow the methods of qualitative, inductive, deductive, experimental and empirical research methods. The chapter begins with the introduction, rationale of research, literature review followed by the aims and objectives of the research. Then the research approa ch, research design, data collection, refresh design, data analysis and questionnaire design are discussed. The chapter ends with the outcomes and limitations of the research.This research will be followed as per the below yard.Objectives DevelopmentPrimary and Secondary info battle arrayQuestionnaire setDesign SampleData Analysis Calculation net ideaThis research was designed to achieve the objectives mentioned above. The below mention are the tool used for data collection.Data collection method, Sampling size, figure of speech and technique.4.3 Data AnalysisThe data is collected from the actual respondents, the next step in the research process is data analysis. The purpose of this analysis is to interpret and draw conclusions from the collected date. Here a four-step procedure is followed for data analysis.Editing.Coding.Data entry.Tabulation.4.4 Research PlanningFirst 2 calendar weeks of February 2011 Collection of Literature kick the bucket 2 weeks of February 2011 P reparation of research methodology and preparation of questionnaireIn First 2 weeks of frame 2010 Collection of primary/secondary data closing curtain two weeks of March 2011 Critical analysis of dataLast week of March 2011 Drawing a conclusionFirst weeks of April 2011 Drafting the net reportSecond weeks of April 2011 Final report documentationGraphical mental representation for Research Planning This presentation shows that for the first two weeks will be required to collect the primary data. During this process it ensures that the researcher is equipped or has received the sufficient knowledge about the topic under research. This gained knowledge would help the researcher in his further course of the research. This is based on this literature review where the control of the problem is explained. Based on statement of the problem, the claim research methodology is taken out and the questionnaire for primary data will be designed. After this the primary data collection be gins, which takes longer time to complete about 3 weeks. At this stage the researcher (I) has to make sure that he receive the maximum or highest number of respondents. This process takes close to two weeks. Followed by this we have the most particular part of the research, which is the analysis of primary data and secondary data. To complete this analysis process it takes about two weeks. Once this analysis is completed sinlessly the researcher needs another week for writing the conclusion and result from the analysis, followed by another week for drafting and finalizing the reportBased on the resources given, in terms of knowledge or skill of the researcher, and the time available for conducting the research with access to a wide range of relevant or accurate data and information, the above plan is the most feasible one for successfully conducting the research and obtaining results.CHAPTER 5BIBLIOGRAPHY5.1 ConclusionThe conclusion of this research would give a clear picture of t he successful acquisition and integration process and how Santander continues to grow in this business.5.2 BibliographyThis topic which I have chosen is an acquisition project between GE and Santander, with regards to the integration of product and processes of the two organizations. The content was taken from newspapers, journals, articles, internet, internal email and interviews. There will be few interviews taken under this topic, with the senior directors and manager in the organizations. I being an employee for Santander UK, and a lead member of an integration and migration project in the rude(a) Business Department, getting information will be easy as I have an authorization from my manager. During this research I have referred to many books, meeting with the senior management team, discussion with all required departments to reelect the integration with values. I hereby will confirm that the all information which will be taken will very much be mention as references and ind ex on the final dissertation.Impact of Project Management on Mergers and AcquisitionImpact of Project Management on Mergers and AcquisitionIn todays complex and competitive global business environment, organizations must adapt to changing environmental conditions by continuously initiating changes in order to remain competitive and profitable. These changes occurs when organizations undertake such changes as implementation new technologies, mergers or acquisition, downsizing, restructuring operations, and outsourcing. During these changes if companies implement programmes like six-sigma or business process improvement then according to Hayes(2002), these changes are usually prompted by a need to maintain or improve an organization effectiveness where effectiveness relates to the organizations ability to use recourse efficiently to achieve immediate goals as well as embracing the need to changing conditions to be to remain efficient over the long term (Carnell, 1999). According to Fr ance, Harrington and Marguire (1987), improving an organization effectiveness has important consequences for its overall corporate performance. Despite the available of a number of models to aid the successful diagnosis and implementation of change effort, Beer and Nohria (2000,p.88) claims that 70% of all changes initiates fail because managers immerse themselves in an alphabet soup of initiatives without fully understanding the nature and process of corporate change. Therefore there is organization growth is very much important to understand how changes occur so that they can better manage the change process to improve their organizational effectiveness.Rationale of ResearchThe benefits of this importance of this research help us to understand the impact of change management. Merger and acquisition are very much frequent nowadays. Everyone passes Merger and acquisition either themselves working in an organization or soulfulness who is working or owning shares in the firm or merge d with another organization. When firms merges between two organizations under takes changes. This change can be in positive or may be the other side of suffering. This motives has been studies previously in the financial sectors, however it frequently linked with the acquisition and merging process. Based on a literature review it has been said that there are two main types of motives for mergers and acquisition.First motive reason is the financial reason, such as increasing the overall performance and creating value for shareholder.Second reason is the non value maximizing managerially based motive.Recently due the economic situation, cross borders Mergers and Acquisition activities have risen significantly. Countries in the Europe are very much involved in the Mergers and Acquisition market.The acquisition motive is therefore often linked to acquisition and integration strategies and outcome in the research. Hence it is important to know and understand the process of acquisitions and help to make it more effective in order to gain extra benefits arising of it. Mainly to review the different kinds of product and processes these two companies has and find the positives for a final decision. This research explains the impact of project management merging acquisition between GE Money and Banco Santander. This comparison review answers the importance of integration process in making the acquisition more effective.Limitation of ResearchWhen analysis the Acquisition project we need to remember one key fact that the process actually is long drawn out and can take months or years to be completed. The organizational change takes places and this can be sure when the change will be effective for the organizations. Hence due to time constraints, it was not possible for this study to look at any particular Acquisition deal across its lifecycle. To analyse this research I have relied on information got through sources like, management team meeting, financial books and re ports.CHAPTER 2AIMS AND OBJECTIVESAimThe aim of the research to find out the impact of project management on mergers and acquisitions. This aim is to organize and review the relevant literature on organizational change.ObjectivesPrimaryTo study the impact of Project management on Mergers and Acquisitions.SecondaryTo understand the importance of Project management on Mergers and Acquisition.To understand the importance of the integration in the Acquisition.To study the importance and need of Project management tools and techniques on the process of Integration.To analyse the success on implementation of Project management approach in mergers and acquisitions.CHAPTER 3OUTLINE OF RESEARCHLITERATURE REVIEW3.1 Definition of Mergers and AcquisitionMany authors have explained and written several definitions about merging and acquisitions, some of them are mentioned below.According to Joseph (2008), Change management is a loosely defined term that refers to a broad array of activities and i nitiatives that occurs in the workplace. As such in order of effective, a change management program must integrate those programs elements that address any of the variety of elements, communication, training, testing, program planning, market analysis and implementation of new policies and procedures.According to Gaughan (1996), A merger is a combination of two corporations in which only one corporation survives and the merged corporation goes out of existence?. (1). He explained that according to merger the acquiring company assumes the assets and liabilities of the merged company. A statutory merger differs from a subsidiary merger, which is a merger of two companies in which the target company becomes a subsidiary or part of a subsidiary of the parent company.Gaughan also states that a merger differs from a consolidation which is a business combination where two or more company joins to form a new company. In this all combining companies get dissolved and new company is formed. F or E.g. There are two companies. Company A and Company B, where B is merged with A. In a consolidation (Company A + Company B = Company C). In this Company C is entirely a new company. There are differences between the terms merger and acquisition, however many terms between mergers and acquisition are interchangeable.According to Sudarsanam (2003), In a merger, the corporations come together to combine and share their resources to achieve common objectives. The shareholders of the combining firms often remain as joint owners of the combined entity.? (2)Pearson (1989), An acquisition profile is a written documentation of description of the importance features required in a company to be acquired. This profile is a valuable aid and should be signed off by the senior management team (Board of Directors), to authorise work to proceed. Both the companies are adequate to give a description which will focus the search for the suitable companies, which means that the company which fall out of the acquisition profile will be rejected with a minimum of time and effort. (3)According to Sudarsanam (2003), An acquisition resembles more of an arms length deal, with one firm purchasing the assets or shares of another, and with the acquired firms shareholders ceasing to be owners of that firm.?3.2 Types of MergersMerger and Acquisition is depends on the particular company to which it target company is acquired. An organization or company will try to merge or acquire only when it has come to a stage of expand its operation to make it growth internal strength. The company aims to have its position stabilized under business growth, finance, and be a leader in the market. According to Neirinckx (1999) he explains this in detail three types of mergers and acquisition.3.2.1 Horizontal Mergers AcquisitionThe best acquisition of this type tends to be companies, which have a high quality product line and are trading in market where the acquirer is also present. The horizontal acquis ition allows rationalism and thus allows an improved cash flow. Horizontal acquisition are however not a guarantee for success.One of the variables which need to be considered whether one major acquisition is desirable or whether a series of smaller ones is preferred. Sequential acquisition of smaller companies tend to be more successful because the digestion of a very large acquisition is complex and entails a lot of dangers, such as integrating two potential different cultures into one.The main reason of these mergers in to obtain economy in sales production. These mergers results in reduce of firms in an industry, due to which such mergers types becomes easier for the industry to join together for monopoly gain or profit.Example In 1998 Merging and acquisition which took place Exxon and Mobil which can be considered as a typical example for horizontal mergers and acquisition3.2.2 Vertical Mergers AcquisitionA company proceed in a vertical merger when its usually seeks to merger with another company to takeover another company especially to expand its operations by the process of integration.Organizations integrate vertically between different stages due to reasons like improves planning for inventory and production, technological economies, reconciliation of divergent interests of parties to a transaction, elimination of transaction costs, etc.Vertical acquisition have a very bad reputation and while many companies are actually reducing their vertical integration.Example In 1993 a Merging and acquisition took place between Merck and Medco in the pharmaceutical Industry.3.2.3 Concentric Mergers AcquisitionAccording to Neirinckx, Typically this means the acquisition of companies in business areas which are connected to the core business.? This happens when the company feels strong in its basis of technologies distribution or marketing.Companies engage in concentric merging and acquisition tends to make a limited line of products and are very strong in one o f the business segments. This happens in slow growing firms and is being used by companies which occupy a rather narrow segment of a widely spread firm and took for higher profit margin in other firms.3.2.4 Conglomerate Mergers AcquisitionConglomerates are group of companies that operate in widely diverse industry.? (Coyle, 2000 p 22). According to John C. Narver The definitions of conglomerate mergers in the report referred to little or no discernible relationship between acquiring and acquired firm.? According Guaghan (1996 p. 7), A conglomerate merger occurs when the companies are not competitors and do not have a buyer- seller relationship.?This conglomerate mergers Acquisition can be distinguished between two types.Financial ConglomeratesManagerial Conglomerates3.3 Motives of MergersAccording to Hilda, (2000), the motives behind mergers are complex. Freidrich Trautwein was one of the researchers to attempt to make sense of the various theories extended to explain the allure o f mergers. Freidrich Trautwein identified seven theories and looking at examples of organizations espousing that motive, investigated evidence of that motive and plausibility of the theory.The theories Freidrich Trautwein examined were-EfficiencyMonopolyValuationEmpire BuildingProcessRaiderDisturbanceStephen Wernet and Sandra Jones suggest that there is a difference in motive between for profit and non- profit companies. In the profit sector mergers are understood from the perspective of the purchaser not the acquired firm, and occur as a strategy for growth and expansion. In the nonprofit sector, resource scarcity and environmental uncertainty motivate mergers.3.4 Defining an Acquisition ProfileAcquisition profile needs to be described with quantitative and qualitative features which are very much important to the acquiring company.Pearson (1989) explains the content of an acquisition profile must have a description of the acquisition project. The profile has been explained below a ccording to him. (4)3.2.1 Market segment, Product and Services3.2.2 Commercial Rationale3.2.3 Maximum Cash Available For Acquisition3.2.4 Maximum Total Purchase consideration3.2.5 Minimum Size3.2.6 Minimum Profitability3.2.7 Management Style3.2.8 Location3.2.9 Key Requirements for Success3.2.10 Financial Returns to be achieved3.5 Overseas AcquisitionOverseas acquisition is not as normal as acquisition of companies within the same countries. Lets study the more about overseas acquisition.Pearson, (1989). Acquiring a company overseas needs proper research and analysis at the outset. It could prove to be an expensive ego trip. An overseas acquisition should be demonstrably relevant to defined corporate objectives and strategy?.If there is a depression in the home market, however the same business may find growth in the overseas market. Overseas growth may provide the opportunity to develop the business. According to Pearson, Politically a business which is multinational is less vulnera ble to threats such as nationalization. There are risks involved the overseas acquisition such as customer resistance to overseas owned companies, different culture, language difficulties and local regulation rule. It is important that the acquiring company need to examine where to extend it business and also selecting the country under business development and profitability.3.6 Selecting the CountryThe country for acquisition must be chosen before an acquisition profile. This involves in market research and some key factors. According to Pearson, there are five key factors for selecting the country for acquisition. The key factors are mention and explained below in detail.3.6.1 Political Stability3.6.2 Cultural and Social Background3.6.3 Economic Environment3.6.4 Legal Requirement3.6.5 Taxation and Repatriation of Funds3.6.1 Political StabilityThe political stability depends on the payback time for an overseas investment. This is like setting up a company in the rented premises and then the packback period would be less than two years. For an acquisition the time period is much longer.There are political instability like civil unrest, national strike and local wars. Political stability for many countries will be ruled out on this factor.3.6.2 Cultural and Social BackgroundPearson, (1989), It is important that the country accepts overseas ownership of business, a ownership the implications of capitalism involved?. Foreign investors are treated differently than home investors. In some countries they offer valuable incentives where as other side discriminate against foreign ownership. The education standard, communication and services need to be adequate to support the business and management style.The health and safety hazard need to checked. In some countries, its not safe for executives and family lifestyle due to many kidnapping and unacceptable threat of violence. Precautions and insurance for personal safety may be required.Business culture and ethics vari es from country to country. In some countries it may be not possible to run the business effectively without paying bride to get things approved.3.6.3 Economic EnvironmentAccording to Pearson, the ideal country will combine the prospect of good growth in the relevant market sector and acceptable levels of inflation with a relatively stable currency. The economic growth in some country may be poor, however in some markets will still open doors for attractive investment opportunity.3.6.4 Legal RequirementsGovernment approval is required to complete an acquisition. Anti trust and monopoly issues legislation may exist. Local advisers are needed to complete a course to meet the legal requirement of the country. In acquisition there will be need to meet the local requirements and these are known as outset. Adding to Anti trust rules and regulations there will be exchange control regulation, Law of employment and other legal laws which is required.3.6.5 Taxation and Repatriation of FundsIn vestment in an overseas acquisition need to be evaluated for net of taxes. Taxation rate, tariff, incentives double taxation agreement and withhold taxation must be taken in to account. Fund that are invested in the net of taxation, it is not necessary to achieve an acceptable rate of return. The rule for repatriation of profits and capital should provide adequate scope for funds movements.As per the above factor a satisfactory country should always be possible. It is very much important to check that enough suitable potential acquisition companies exist and the purchase price, company expectations are to be acceptable.3.7 Reason for Merging and AcquisitionAccording to Gaughan, there are several reasons and motives that firm might engage in merging and acquisition. Out of all motives and reason one of the main motives is expansion. Acquiring a company in a business line or geographic area where the company may want to expand can be quicker than internal expansion. Acquisition of a c ompany may provide certain synergistic benefits for the acquirer, such as two lines of business complement one another. An acquisition can also be a part of diversification process that allows the company to move into a different line of business. When firms get engaged in merging and acquisition for the motive of expansion, the cite potential gain as one of the reason for the transaction.Financial factor motivates some merging and acquisition. For E.g., An acquirers financial analysis may reveal that the target is undervalued, which is the value of the buyer may be significantly in excess of the market value of the target. Even when a premium that is normally associated with changes in control is always added to the acquisition price. Apart from this tax motivation also plays a major role in acquisition.3.8 Definition of Project ManagementAccording to James P Lewis, he defines project management as application of knowledge skills tools and techniques to project activities to meet p roject requirement?. Project management is accomplished through the application and integration of the project management processes of initiating, planning , executing, monitoring, controlling and closing.According to Timothy J. Kloppenborg, Arthur Shriberg, Jayashree Venkatraman, A project is a temporaray endeavor undertaken to create a unique product or service?. Project management is the application of skills, tools and techniques to project activities to meet project requirements, which in turns requires project management to understand to project objectives, limitations, lifecycle and roles of the participants.3.9 What is Project Management?Project management is a set of principles, method, and techniques that people use to effectively plan and control project work. It established a sound basis for effective planning, scheduling, resourcing, decision-making, controlling and replanning.Project management principle and techniques help complete projects on scheduled, within budget and in full accordance with project specifications. At the same time, they help achieve the other goals of the organization, such as productivity, quality and cost effectiveness.The objective of project management is to optimize project cost, time and quality.3.10 Importance of Project ManagementIn this world many people become project with knowing the meaning of projects. Someone assign them to manage a project because of their areas of expertise, not because they have received any by accident, it will become a disaster. Learning project management skills can help you complete projects on time, on budgets and on targets. The discipline of project management includes proven strategies for clarifying projects objectives, avoiding serious errors of omissions and eliminating costly mistakes. It also addresses the necessary people skills for getting the cooperation, support and resource to get the job done.Project management is not just for project managers. Team members need to know h ow carry out their parts of the project and business executive need to understand how to support project management efforts in the organization.3.11 Project Management RoleAccording to Gary Heerkens, project success will depends on personality traits like honesty, tolerance for ambiguity and openness. However skills required to make a process to go smooth. Paying constant attention to communication, making sure that, the project sponsor and the team members are clear on boundaries and expectation, documenting the project process (task, responsibilities, and relationships) and understanding customer and business needs. There are three main project management skills which are mandatory to have to lead or be a part of a project.3.11.1 Develop Process Management SkillLearn tools for coordinating the work of many people. Get comfortable dealing with managers on issues of expectations, cost, scheduled and resources.3.11.2 Build Your Interpersonal SkillProject management is all about getti ng things done through other people. Work on written and oral communication skills. Learn how to negotiate and influence. Become a coach and mentor to your project members.3.11.3 Build a Project NetworkIn all likelihood, your project will involve issues that are beyond your own area expertise. You should educate yourself as much as possible about the work your organization does, but it also helps to make contacts with people from diverse areas of your company.CHAPTER 4RESEARCH PLAN AND METHOD4.1 MethodologyThe methodology part specify details about the research method design, which indicates the action plan which has been followed to carry out the research to find the impact of project management on mergers and acquisitions. The amount of information which are collected, along with the techniques are used for sampling the data collection method. This also includes the data collected by primary and secondary resource. Data analysis process or method and limitation of the research th at impacts the study are also explained.4.2 Research DesignThis research will help us to understand the impact of project management for mergers and acquisitions. It has become clear that several ways of doing things may have to be melded and compared before the aims can be fully met. Researches will need to be conducted on the impact on mergers and acquisition firms. We need to evaluate reliability and efficiency under real world conditions using various techniques. This data would be helpful in determine what steps does the organization takes when it comes to change between the organization in terms of mergers and acquisitions. This research will follow the methods of qualitative, inductive, deductive, experimental and empirical research methods. The chapter begins with the introduction, rationale of research, literature review followed by the aims and objectives of the research. Then the research approach, research design, data collection, survey design, data analysis and questio nnaire design are discussed. The chapter ends with the outcomes and limitations of the research.This research will be followed as per the below step.Objectives DevelopmentPrimary and Secondary Data CollectionQuestionnaire PreparationDesign SampleData Analysis CalculationFinal ReportThis research was designed to achieve the objectives mentioned above. The below mention are the tool used for data collection.Data collection method, Sampling size, frame and technique.4.3 Data AnalysisThe data is collected from the actual respondents, the next step in the research process is data analysis. The purpose of this analysis is to interpret and draw conclusions from the collected date. Here a four-step procedure is followed for data analysis.Editing.Coding.Data entry.Tabulation.4.4 Research PlanningFirst 2 weeks of February 2011 Collection of LiteratureLast 2 weeks of February 2011 Preparation of research methodology and preparation of questionnaireIn First 2 weeks of March 2010 Collection of primary/secondary dataLast two weeks of March 2011 Critical analysis of dataLast week of March 2011 Drawing a conclusionFirst weeks of April 2011 Drafting the final reportSecond weeks of April 2011 Final report documentationGraphical Representation for Research Planning This presentation shows that for the first two weeks will be required to collect the primary data. During this process it ensures that the researcher is equipped or has received the sufficient knowledge about the topic under research. This gained knowledge would help the researcher in his further course of the research. This is based on this literature review where the statement of the problem is explained. Based on statement of the problem, the exact research methodology is taken out and the questionnaire for primary data will be designed. After this the primary data collection begins, which takes longer time to complete about 3 weeks. At this stage the researcher (I) has to make sure that he receive the maxi mum or highest number of respondents. This process takes close to two weeks. Followed by this we have the most critical part of the research, which is the analysis of primary data and secondary data. To complete this analysis process it takes about two weeks. Once this analysis is completed accurately the researcher needs another week for writing the conclusion and result from the analysis, followed by another week for drafting and finalizing the reportBased on the resources given, in terms of knowledge or skill of the researcher, and the time available for conducting the research with access to a wide range of relevant or accurate data and information, the above plan is the most feasible one for successfully conducting the research and obtaining results.CHAPTER 5BIBLIOGRAPHY5.1 ConclusionThe conclusion of this research would give a clear picture of the successful acquisition and integration process and how Santander continues to grow in this business.5.2 BibliographyThis topic whic h I have chosen is an acquisition project between GE and Santander, with regards to the integration of product and processes of the two organizations. The content was taken from newspapers, journals, articles, internet, internal email and interviews. There will be few interviews taken under this topic, with the senior directors and manager in the organizations. I being an employee for Santander UK, and a lead member of an integration and migration project in the New Business Department, getting information will be easy as I have an authorization from my manager. During this research I have referred to many books, meeting with the senior management team, discussion with all required departments to deliver the integration with values. I hereby will confirm that the all information which will be taken will very much be mention as references and index on the final dissertation.