TRANSORGANIZATIONAL CHANGE

Presented By: Sabahat Fatima

Registration No. FA18-BBA-011

Submitted to: Dr. Imran Malik

What is Transorganizational change

 The change in the arena of relationships between

organizations that affect not only the single
organization but impacts the whole network of
organizations.

 It is planned change in the network of relationships

with a variety of stakeholders to accomplish
something which is beyond the capability of a single
entity or organization.

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Cont..

▰ Organisations extend their boundaries to cope with complexity and rapidly

changing environment
▰ They merge with others or acquire others to: - gain essential capabilities and
resources - operate at large scale - Enter new markets - Tackle complex
problems or project that single org cannot achieve
▰ Form strategic alliances to share costs and expertise
▰ Conflicts and misunderstandings can occur

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 Mergers and Acquisitions Rationale

 Merger -- the integration

of two previously
independent organizations
into a completely new  Diversification
organization  Vertical integration
 Gaining access to global
 Acquisition -- the markets, technology, or
purchase of one other resources
organization by another  Achieving operational
for integration into the efficiencies, improved
acquiring organization innovation, or resource
sharing
 Distinct from
transorganizational
systems 4
Mergers and Acquisitions Application Stages

Pre-combination Phase
 Search for and select candidate
 Create and M&A team
 Establish the business case
 Develop merger integration plans

Operational Combination Phase

 Implementing the operational, technical and cultural integration
activities

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 Strategic Alliance And Its Application Stages

Strategic Alliance
=>When two organizations formally agree to pursue a set of goals

Application stages
• Alliance Strategy Formulation
• Partner Selection
• Alliance structuring and start-up
• Alliance operation and adjustment

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THANKS!