Sunday, March 17, 2013

United and Continental Airlines" a discussion of M.Azim Ulfati


"Based on your research of the United and Continental Airline merger, evaluate the challenges experienced during the merger and the resulting impact to the business."
"Assess the effect of mergers and acquisitions on the company’s customers, employees, and shareholders, and determine how what has been learned can be applied to companies doing acquisitions and mergers in the future."

The United and continental airlines merged for the hope of success and sustaining the best quality service as the best and largest company in the world. I guess when these two companies merged, the problems and frustration of customer started. Mergers and acquisitions had many different effects like changing the technology system of the company, operational performance and culture of the company.
Communication system affected the employees in management, getting along with the system and other employees within the company. It created uncertainty environment to the shareholders and made shareholder nervous and insecure and that, which also affected the stocks.

When these companies merged they needed to anticipate and make strategic management plans before merging and when they started to merge they had to accept risk.
They needed to allow enough time to the employees to go through trainings so that they get familiar with the new system, culture, plans, management, technology, equipment’s and all other operational and customer service performances and strong communication with share holders. Once every thing was well set and planned then the company could go and could lead to the positive side by the merger and there would have been hope for achieving outstanding success and achievements.

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