CS Professional · Corporate Restructuring, Valuation and Insolvency · Planning and Strategy
Kaveri Foods Ltd absorbed a competitor by merger. Kaveri's integration plan has four workstreams: IT systems, HR harmonisation, customer retention and statutory filings. The merger is already effective, and a sales key account manager warns that major customers may leave during the transition. Applying the principle of sequencing integration by value at risk, which workstream should receive priority attention in the first 100 days?
Customer retention should get priority in the first 100 days. Integration is sequenced by value at risk, and customer attrition causes immediate revenue loss that is hard to recover, whereas IT and HR harmonisation can proceed in later phases. Statutory filings must still be met on time.
- ACustomer retention, since revenue loss is immediate and hard to reverseCorrect
- BComplete IT systems harmonisation, since it takes longest and is the least visible to customers
- CHR grade harmonisation, since it is purely internal
- DStatutory filings alone, since all other workstreams can wait indefinitely
Explanation
Integration is prioritised by value at risk and speed of loss. Customer attrition causes immediate, hard-to-recover revenue loss, so it needs priority within the first 100 days. IT and HR matter but can follow; statutory filings must be done in time but cannot be the only focus, so they are not the sole priority.
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