Risk Assessment

Alpha and Colmar Company face a lot of risks after the merger process.
Risk 1: Geographical division
Despite the fact that the two firms are not far apart, there is still a need to relocate the setup to
Manchester or Stockport with the provision of transportation. However, Alpha's workers are still
dissatisfied with this decision and have expressed a desire to continue working at the same
location. They do not exhibit a receptive attitude in order to accept this.

Risk 2: Distinction of Managerial set up

Representatives of Alpha and Colmar Company are dealing with issue to connect with each on
the arrangement of new consolidated company. The significant explanation for this absence of
connection is the enormous contrast of administrative set up of two companies. If there should
arise an occurrence of Alpha, they have more casual set up and they used to call different
representatives by their name. They had never thought of outskirts to discuss even with the
higher specialists of the organization, yet the set up in Colmar is radically unique. They had more
formal and controlled design. So because of the present circumstance it prompts the absence of
correspondence between the representatives of two organizations which are currently intended to
be cooperating.
The majority of the merged company's appointments were determined to be made on the basis of
specialist interests, but where this was not applicable, the appointments were made on the basis
of seniority. Most of the faculty of Alpha was junior so it was made as deputy head. As a result
of this decision, the Alpha's workers developed a distrustful attitude.
Risk 3: REDUNDANCY IN OPERATIONS
Any company employees are the backbones because they are intended for work and production.
A proper environment for workers to work is therefore an integral requirement. (Crawford and
John, 2013) The refusal of a few employees to change jobs, despite the availability of free
transportation, offset some of the potential redundancies among operators. They went to work
elsewhere. According to Alpha employees, they did not obtain their rights in the manner that
they should have. The new company's overall morale was extremely low. As a result, Alpha's
employer began to relocate, displacing a number of talented, hardworking, and passionate
employees.
Risk 4: Integration Problems
Prior to the merger of two companies, the employees of the Alpha Company are not trusted. It
was not the company's custom to keep employees in the dark about company matters. As a result,
all Alpha employees are taken aback because they have never encountered a situation like this
before. Alpha Company employees are more steadfast in their old working methods and are
unable to accept change easily. It is important for the company's employees to incorporate two
components essentially in their behaviour, which are feasibility and adaptability. These two
characteristics aid in psychologically accepting change in the company, but they were lacking in
Alpha's employees' behaviour. The formation of a new (combined) company is planned in the
Colmar Company format, ignoring the appropriate environment in which Alpha workers can
operate properly. Staff behaviour is unsatisfactory for a fresh start. Passion and enthusiasm are
severely lacking, which is a critical requirement for new work.
Risk 5: COMMUNICATION PROBLEMS
Adopting or practising more progressive and strategic communication is another successful tool
for Colmar-Alpha Chemicals to address the issues raised by the recent merger. The main issue
that the company has faced since the merger is a drop in employee morale (McQuilkin, 2014).
This problem may be the result of inadequate communication between employees and
management. The degree of responsiveness of supervisors to employee complaints and the
degree of influence employees feel they have over their jobs are the main reasons for employees'
low morale during change (Klein, 1996).

Risk Assessment
The merger of Alpha Plastics and Colmar Chemical Company presented many problems during
the due process. Both merged companies experience significant changes as a result of the
merger. Managing a merger is not an easy task, and it must be done with many key factors in
mind (Gaughan, 2015). The study of the risks due to merger between Alpha and Colmar reveals
that each of the company come from different organisational backgrounds, cultures, and
structures. Because of these differences in orientation for the merged companies, it has been
critical to consider the use of a variety of tools and strategies to address the identified risks
brought about by the merger process (Maynard T., 2013).
Assessment 1: Transition management
The merger of Alpha and Colmar Company has exposed the merged company and all
stakeholders to a total transition phase. This transition will have a significant impact on how
these companies perform in the future (Waddell & Sohal, 1998). As a result, transitional
management can be viewed as an important tool for resolving merger-related issues. Based on
the analysis of the identified problem, it was discovered that the company experienced
significant changes in employee perception, organisational structure, and wage structure (Gill,
2002). The key aspects of merged businesses, according to this tool, will be closely considered
based on an understanding of the characteristics and aspects of the planned transition (Pignataro,
2015).
Furthermore, in order to achieve the desired transition, the merged company will incorporate the
key elements of both companies. The use of transition management in the case of Colmar –
Alpha Chemicals would work by strategically integrating the merged companies' structure and
system.
Assessment 2: Leadership
Strong and change-oriented leadership can be extremely beneficial in resolving merger-related
issues. Leadership can be an effective tool for change management (Gill, 2002). It is critical for
Colmar – Alpha Chemicals Company to implement integrative leadership models in order to
address change and related problems. During the merger phase, the company's primary
requirement is higher successful and behavioural leadership (Waddell & Sohal, 1998). However,
having better behavioural and efficient leadership is insufficient for Colmar- Alpha to solve
merger-related issues. The use of transformational leadership, guided by a positive and change-
oriented vision, values, tactics, and motivation, would enable the leadership to solve the issues
caused by the merger (Gill, 2002).
Assessment 3: Resistance Management
Resistance management is an invaluable tool for resolving merger-related issues. Understanding
the challenges associated with change is aided by resistance. Resistance is not the issue in and of
itself, but it is an indication of a flaw in the planned change. It persuades the group to strive for
more stability. Resistance allows the Colmar-Alpha Company's management to focus their
attention on elements of the change that have previously gone unnoticed (Pignataro, 2015).
According to Litterer (1973), a lack of resistance complicates change management even more.
Resistance leads to conflict, and conflict leads to positive change.

Assessment 4: Involvement
Involvement is an unavoidable change management tool that will ensure Colmar-Alpha
Chemicals' effective merger implementation. The Colmar – Alpha merger challenges are
primarily the result of different parties' disagreements on various aspects of the merger. As a
result, including those parties in the planning and implementation of the change may be an
efficient way to address any difficulties that may arise (Gill, 2002) Employee morale at Alpha
Plastic, for example, had suffered as a result of the perception that Colmar workers were more
favoured during the merger process. Involvement can be a powerful and efficient tool in
resolving such an issue (Pignataro, 2015).
As a result of using this tool, the company will participate Alpha workers in the planning
process. Furthermore, their perspectives and thoughts should be understood and integrated into
the merger's change strategies.
The participation of workers and stakeholders from both merged companies during the merger's
planning and implementation may aid in mitigating the issues associated with the merger Alpha
Plastics and Colmar Chemical Company (Klein, 1996).