Case analysis Essay Example | Topics and Well Written Essays - 1000 words

Case analysis - Essay Example So mergers take place when two or more existing companies decide to wipe out their business identities and activities and assumes a new identity jointly as a single entity. The topic of current discussion is the merger of two companies, that is England’s Royal Biscuit Company and Germany’s Edeling. According to Sir John Callaghan, Chairman of the London based, Royal Biscuit Company, there is no evidence available to suggest that both these executives, Mr. Michael Brighton, Head of HR of Royal Biscuits Ltd., and Mr. Dieter Wallach, his counterpart of Edeling worked together on this leadership development plan. The new company ‘Royal Edeling’ which would amicably blend both those existing companies, that is the merger of equals. By taking the two sides-one which is an entrepreneurial Powerhouse that had veritably single- handedly transformed British Snack food industry, and the other, a 120- year old, Munich based family, with a German brand. In this particular Case Study, it is the Royal Biscuits’ proposed merger with German Biscuit-maker major. The major problem for mergers are of integration planning, which was dreadfully behind schedule and merger of the leadership between the two Companies. Seven out of the 10 seats in the new Company’s Management Board of Directors would be held by Royal Biscuits. Regarding the composition of the executives, less than half of the positions on the Supervisory Board would go to Edelings stockholder. However, it was felt that in a merger of equals, leadership assignments should be shared equally. Should the merger take place, according to laws in Germany, the new company would be managed by a Management Board, that would look after operations and also by a Supervisory Board that would supervise the management and would represent all stakeholders Then, the national differences between both British and German