Every organization exist for some purposes either to contribute to the society, or to maximize the profit for the stakeholders and are often forced to adapt other business by acquiring or partnering/merging in order to remain competitive or simply to grow their business. A company may merge through sale deed to a larger public company or its reciprocal. Companies restructure their operations, assets and relationships with the stockholders in search of higher growth, expansion, technology adoption and greater revenues.
Organizational change can be referred to as organizational development and organizational transformation (Cummings and Worley, 2005; Newhouse and Chapman, 1996) Mergers or acquisitions, and transformation is form of change strategy which often enable a private company to develop a competitive advantage by increasing services through growth in the market, greater share in the market profit and shareholders value.
A very common motive more or less is the strategic growth, talent growth, a uniqueness in services and products, and aiming to become market leader when two private companies from the same business class or market enter into a merger agreement it is known as horizontal merger, the merged private companies benefit from economies of scale and increase total market share by consolidating facilities, combining operations, increasing working capital, reducing competition, or reducing advertisement costs, etc
In this report ,I will try discussing one of the change which company (DG Private Hire ) is going through to make itself a market leader in the region and strategies adopted ,factors which are influencing or may influence the company in future . The advantages and some disadvantages of acquisition (Change) and how should the responsible mangers take action to make the culture in favour of this change or changes the company will be going through the growth process.
DG Private Hire ( a private Taxi company) has been trading for over 35 years and is one of the most established companies in the East Midlands, runs as a family business, has grown from 12 to over 700 (2013) fleet of vehicles, prides itself on customer care and reliability. Having started the company from a porter cabin to current name DG Private Hire company providing the taxi services to local and regional customers, has done a great progress in term of growth. . Javaid family (the current owner) made the acquisition of DG Cars in 2001.
For the last 10 years company have invested a lot of capital through acquisition of other small firms and seen the fleet grow to its present day size nearly 700 vehicles. In 2009 the main core of the business moved to its present day premises in Colwick, DG House a purposed designed call centre accommodating over 70 full and part-time staff including Mr Ian Pole, who started with the company in 1983 have over 18 years experience delivering customer service, backed by valued call centre team .
Since Amjid (CEO) and family took over the business sponsorship within the local community has seen the company name supporting various causes including NHS and Cancer Research, local cricket league (Nottingham Alliance) and major sponsor of the Nottingham Racecourse. Reliability and customer care as seen the company develop into Nottingham’s largest and newest fleet using the most advanced booking and dispatch technology. The company strategy is to continue investment in training, technology, expansion(through acquisition of more businesses) and more importantly service to valued customers.