Expertise and experience resulted in better operations, administration, management and financial decisions. Furthermore, they can use their experience strategically to avoid problems that have cost the company time and money in the past.
Merging operations and management between OG and IDEAL can achieve economies of scale and scope. Restructuring IDEAL is a great opportunity: a company that has been restructured effectively will theoretically be leaner, more efficient, better organized, and better focused on its core business with a revised strategic and financial plan.
OG has skilled human resources who feel empowered and are intrinsically motivated to work toward that goal. This in turn increases productivity as well as employee loyalty to the company, both which are desirable to the company in the short and long run. .
Weaknesses (Internal).
OG has a different organizational culture than IDEAL. OG advocates a market culture, has a strong external focus while IDEAL uses a culture of hierarchy that has an internal focus. Ideal also values stability and control over flexibility. OG needs to accommodate the potential conflict between cultures.
IDEAL is a state-owned company based on bureaucracy and routine, and many people were motivated to work at IDEAL because being a government employee was considered a stable and secure job. This gives OG more challenges to change the brand image.
Acquiring IDEAL will lead to increasing staff costs for OG since IDEAL had around 8000 employees, 4 times that of OG. Most of the Ideal employees skipped work time to deal with personal things or did not come to work at all. Overstaffing resulted in high costs of operations.
IDEAL used a bureaucratic system of management with decisions/policies being very slowly filtered from the top to the bottom of the organization. This method is inefficient. Accountability for mistakes can be harder to ascertain. Too much control discourages innovation and creativity.