MBA dissertation proposal Research Methods for managers

BUSINESS MERGER : IMPACT ON HUMAN AND EFFECTIVE BUSINESS MANAGEMENT (A CASE STUDY OF SONY /BMG MERGER

2005

1 .0 INTRODUCTION

In the contemporary business world , the competition among business organizations to outdo the others is becoming very keen . Different management techniques and business strategies are adopted to garner the best resources man , money and material , in for the business to curve an edge for itself among it competitors

Some business organization in a bid to compete favorably with other blue chips and guilt edge companies , have resorted to merging with

other companies . Business merger is used as a means of consolidating and strengthening the financial , managerial and material base of the merged organizations . In this view Steven and Louis (1990 :17 , has it that A firm acquires another for the same reasons that one firm would merge with another or that one firm would enter into a joint venture with another firm . It is the debenture with another firm 's potential profitability through the use of or sharing of another firm 's expertise

In the aftermath of the merging process , sometimes , it is observed that negative factors that are detrimental to the effective and efficient operation of the organization would begin to surface . Mergers are seldom hostile in nature .A merger like any other business activity , is not without its risks (ibid :73 . In a bid for organizations that are merging to have a successful takeover , it is expedient that vital issues regarding the process of merging are adequately addressed . Obviously there are hundreds of issues that need to be addressed and hundreds of large and small decisions that need to be made in any merger process (Shannon and Stephen , 2000 :35

This research study tends to base its focus on the human , economy and managerial effectiveness and efficiency of the merging organization . A case study of Sony /BMG would be use in the conduct of this research work

BACKGROUND OF THE CASE STUDY

The merger between Sony- BMG will be the second- largest record company in the world with 30 percent of the world music market and combined sales of more than 8 billion , according to Nielsen Soundscan , placing it just below Vivendi 's Universal Music Group and ahead of Warner Music Group and EMI Group ( Keller 2004

The five multinational music companies- Universal Music , Sony Music EMI , Warner Music and Bertelsmann Music Group (BMG )- have been engaged in a collective courtship ritual for years . The decline in sales by more than a quarter since 1999 , and even after swinging cost cuts , industry insiders feel that they need to merge in to restore profitability . Hence , this brought no surprise at the announcement of Sony Music and BMG merger , the group wish to combine 25 share of the global recorded- music market and sales of 4 .5 billion pounds- 5 billion 5 .1 billion -5 .7 billion ( The Economist Print edition , 2003

The BMG 's label including RCA , J Records , Jive and Arista , are home to Elvis...