Question

Discuss mergers and acquisitions as a form of organisational change. Explain their purpose, types, and the major reasons why organisations adopt Merger & Acquisition.

27 Jan 2026
Answer :
Word Count : 998
Mergers and acquisitions (M&A) are significant strategies of organisational change that involve the consolidation of two or more companies to achieve strategic objectives. They represent a powerful mechanism through which organisations seek to enhance competitiveness, expand their operations, access new markets, acquire new technologies, or achieve economies of scale. Unlike other forms of organisational change, which may be gradual and internally focused, M&A often involve a rapid and sometimes complex restructuring of business processes, human resources, and corporate culture, making them critical events in organisational development. The purpose of mergers and acquisitions can be viewed from multiple perspectives, including strategic, financial, and operational objectives. Strategically, organisations often pursue M&A to strengthen their market position by reducing competition or entering new geographic or product markets. For instance, a company operating primarily in domestic markets may acquire or merge with an international player to gain a foothold in global markets. Financially, M&A can provide opportunities for improved profitability and cost efficiency through synergies that reduce redundant operations, streamline supply chains, or leverage shared resources. Operational objectives may include gaining access to advanced technologies, intellectual property, or skilled human capital that would be expensive or time-consuming to develop internally. Additionally, mergers and ______ _________ _________ ________ __________ ___ ________ _________.
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