- April 10, 2020
Management Information Systems
Formany years business have merged their companies to form one corporateentity in the economy. Mergers that involve big business do notbecome successful for various reasons. The merger between Dell andEMC has required several processes to ensure that they succeed. Themerger includes a big business that has functional structures thatare likely to impact on their customers. Neither of the companies isexperiencing financial stress. EMC has been under pressure to breakup so as their valuations could eventually increase. On the otherhand, Dell’s decision to go private led to massive financialsuccess for the firm. The merger is intended to take EMC private as acreative way to keep the business operational. Dell and EMC havealready settled for a two-year consolidation plan. The merger willlikely start with the alignment of the executive management from thetop. Dell is presenting the two-year program to their operation groupso that they can merge successfully (Philips, 2015). They haveresponded by announcing executive realignments that typically becomesa problem when combining big business.
Internalstrife is evident when merging companies like Dell and EMC, but theyhave sought to eliminate such problems by realigning the executive.Moreover, financing and regulatory processes take time by Dell havetaken an approach that is more relaxed rather than a panicked moodthat engulfs mergers that involve big companies. The merger of thesame nature is virtually hard to find. Over the years, Dell hasparticipated in some mergers and the Dell/EMC merger is expected tobecome successful. Dell has incredible consolidation processes thatthey have utilized for years. Dell has been committed to realigningthe staff of their partners a process that comes towards the end ofthe merger. Notably, both companies are successful in theiroperations, and their merger will succeed being that they haveupright merger structures. For instance, Dell has a long history ofconsolidation that has been successful and this merger will not be anexception to taking EMC private. Dell/EMC will permit Dell to expandfrom their personal computers and combine their entity to compete inthe fast-changing technology industry (Philips, 2015). The mergerwill threaten the activities of other such as HP, Compaq, and Applewho are competitors in the technology industry. They are committed tokeeping other technology companies on toes since they are determinedto integrate their technology into the medical and industrial imagingsystems. The merger between Dell and EMC will ensure that Dell is inthe forefront of the supply-chain on matters of technologicalinnovations.
Withthe speed with which technology is advancing, VMware cloud computingsoftware controlled by EMC will benefit Dell immensely. Dell iscommitted to offering their clients with new technology that willsolve their future problems. VMware software will boost the scale andspeed of innovation for Dell Company. Therefore, Dell wants tocapitalize on the leadership of EMC to become a world class andleading technology company that will be committed to offeringsolutions in more cost-effective and faster manner on a global scale(Philips, 2015). VMware remains the central reason for theacquisition of EMC since it has proved efficient in the market.
Ina nutshell, the merger between Dell and EMC is expected to be one ofthe greatest in the sector of the technology. The merger will makeDell one of the leading technology companies ahead of successfulcompanies such as Apple. The acquisition of EMC’s VMware softwarewill enable Dell to offer exceptional services to their customers inthe market. The merger is expected to be successful since both firmshave conventional consolidation processes in place.
Philips, E. E. (2015). Dell’s EMC purchase marks shift from consumer supply chain. The Wall Street Journal, Web.