Merging - Baederman Island Resorts

Baderman Island Resort is like any company when looking at merging with another organization. Merging companies can be a great opportunity for a company to grow, and it can also be a detriment. When merging with another company, especially one that will result in a multi-national company, it is important to look at all aspects of both companies. In addition to issues with staff and business systems integration, it is important to look into the effects of globalization on financial decisions, the factors that will contribute to exchange rate risks, and ways to mitigate those risks.

Strengths and opportunities of the merge for Baederman include the fact that as an island resort there are many locations that can merge and work cohesively in the separate locations. Merging allows the company to find which portions of each company excel and which need work and find ways to expand on the best parts of both companies. This will decrease the negative effects that will occur from globalization on financial decisions because the company will be able to focus on the financial decisions that will benefit the new merged company most. The issue most companies run into with globalization affecting finance is because they do not understand how best to make decisions for the various markets. With a merged company one is able to grow using the best financial decisions for the global market because of the previous companies' experiences.

Weaknesses and threats of the merging for Baderman include the exchange rate risks and factors that the merger will contribute to these issues. In addition, a merger of any kind can bring dissention within the team and takes hard work to smoothly integrate the two companies without running into the various risks associated. Because it is not possible for Baderman to merge with a company and do so only locally while gaining the benefits of a global enterprise the best course of action would be to understand the risks involved with