Role of strategic mergers and acquisitions on firm performance of the Wrigley company east Africa limited

Abstract

The confectionery industry has had numerous players in the sector with the market leaders enjoying monopoly and dictating trends within the industry . However in the recent years, there has been tremendous transformation and dramatic changes in the industry that have been brought about by competition. This study sought to review the role of strategic acquisitions on firm performance.The study's main objective was to review the impact of the acquisitions on overall firm performance which can be of financial and non financial elements. The study focused more on the non financial elements of performance and how the merging or acquisition process was handled to ensure the performance levels were achieved. Primary data was collected by interviewing top level managers and a thorough analysis of the data collected. The researcher was able to collect data and explain occurrences more exhaustively. The study found out that generally if there is a clear business strategy after the merger or acquisition, and is well communicated and understood across the business it will enhance company performance. Additionally it is vital to ensure stakeholder management in the process of communication and changes occurring in the business to ensure mergers or acquisitions have a positive impact. Elements such as cultural fit, employee motivation and value proposition are equally important during and after a merger as they will have a direct impact on performance.The researcher made the conclusion that before mergers or acquisitions management needs to have fair treatment to all staff to have a good perception and support the process. It should not create any sense of job insecurity so communication in regards to such a venture needs to be communicated at all times so that staff feels they are part of the team. The study recommends that firms needs to maintain and seek to improve their standards and always be keen on employees and stakeholders perception .Further research on this study should be undertaken in manufacturing and confectionery industries so as to get the impact of acquisitions on overall organization performance and also to have comparative studies in the industry.