Culture Is The Most Effective Culture

The experiment to find out if organizational culture differences contributed largely to merger failure, stemmed out from the belief that culture is pervasive and should be considered during evaluation. However, the differences are generally ignored when advantages of the merger are considered. The experiment’s hypothesis is that merger failure is due to clash of firms’ cultural conventions and the failure of parties involved to consider the seriousness of conflicts. While other causes of merger failure are acknowledged, the experiment focuses on the differences in culture which conjures different perspectives of the parties involved. Tacit knowledge amongst the merging firms was also explored.

Given these challenges, it is essential to keep the following points in mind when planning and managing communication during a merge and acquisition.

First, integrate all four areas at the same time. Once the managers become more familiar with problems in each area, adapt the parallel problem solving approach. Bundle together related problems across the four areas and tackle them simultaneously. This will help managers make better decisions more quickly without too much guesswork.

In the literature one finds a large number of explanations for the occurrence of mergers and acquisitions. Sometimes, these explana-tions are also applicable to related forms of interindustrial links such as joint ventures or strategic alliances. Therefore it is necessary to define the term merger and acquisition as it will be used throughout this seminar paper.

The integration of two organizations’ corporate cultures into one is no simple tasks, as corporate values, norms, and expectations will differ between the two organizations. According to the article how to Successfully Manage a Merger, “roughly 70 percent of all corporate mergers fail, according to the Boston-based consulting firm Bain & Company. Although mergers can head south for many reasons, difficulties created by cultural differences at merged companies seem to play a significant role” (Schatz, 2013). When merging cultures, companies must have a strategic plan that makes culture a priority in the change management strategy. This plans needs to include defining the desired culture, assigning a team to manage the cultural change, outlining the organizational culture that you wish to achieve, developing the cultural change plan, and making sure that progress of the plan is measureable.

(2015) stated that cross-border acquisition will have cultural differences between countries which need to be viewed carefully during post-acquisition integration. A classic typology developed by Mirvis and Marks (1992) was being illustrated in Appendix 5.1. The types of integration is referring to the degree of change required by the acquirer and the acquired firm. The authors further elaborate the options for integration in Appendix 5.2 based on the structure choices. For example, ‘absorption’ mergers that require fundamental change in the acquired firm, but little change in the acquiring firm. It is essential for the senior managers fully understand of the merger consequences, and at the same time clearly communicating throughout the organization. The key dilemma of the integration process whereby it requires a lot of resources and time-consuming. Hence, it is advisable to undergo full transformation with integrated operational control has the potential to create new dynamic

To learn more about making cultural change within a company, check out this article featured in the Harvard Business Review and Forbes.

employees will feel unsafe about their job, which will cause the lost of the human resources. What’s more, to optimize the new employee structure and reduce labor cost, amount of employees will face to be laid off. Such a large personnel change will cut down the investors’ trust, because the investor will suspect the stability of the new combined company. Even two similar technology companies still have different corporate culture which can represent the companies’ brand images and affect the customers’ loyalty. They may produce the similar products, but they may differ in the business ideas and background. Hence, how to integrate two companies’ corporate culture in order to exert the joint corporate value is difficult for the new combined company. If the new combined company abandoned one of the company’s corporate culture, they will lose part of customers who already lose the faith to the company.

While we know our country’s business history is filled with mergers and acquisitions over the decades, the reasons behind this M&A activity are less obvious. We should now address the real issue of why companies merge. 3

Culture is known as the ideas and way of life of a society. Culture can have a set of behavior and beliefs. Culture has different shared components that have to do with norms, symbols, material artifacts, values, and language. My culture has grown from the days of slavery. Within my culture we have grew from being called Negro, Colored, Black, and are now called African American. I place education as a very high value in my culture. I be believe that having and striving to accomplish getting an education is the way to build a brighter future. My family has values of working hard along with preparing for the future. My mother had twelve children. Out of the twelve siblings in my family two has already earned college degrees. I will be next in in. I shall earn an A.S. degree in Child Development along with an A.A. in Communication from Bakersfield College.

The modern world has seen the formation of firms as a mechanism of integration, which enables individuals to develop an enterprise and to combine capital and expertise from different individuals. Mergers, especially the mega-mergers, change the market structure. Mergers and Acquisitions (M&A) have unparalleled capability to transform firm and supplement corporate renewal. Research in M&A has been done taking into consideration a multitude of disciplines, e.g. finance, economics, law, business, strategy formulation, organization theory, human resource management and sociology. M&A becomes a real time phenomenon due to the attention it receives from different walk of life.

Another important part of a merger and acquisition, in addition to layoffs and employment information, is how well the two companies blend in terms of company culture. Stephen R. Winn, Interim President of ProBank stated that:

A Research Study for integration of different national enterprise culture: One of the difficult problems of cross-border mergers and acquisitions------case study for China electron Company.

A Research Study for integration of different national enterprise culture: One of the difficult problems of cross-border mergers and acquisitions------case study for China electron Company.

During the integration process after merging, the clash of the human resources and the corporate culture will arise. Merger always takes risk on some extent, so some employees will feel unsafe about their job, which will cause the lost of the human resources. What’s more, to optimize the new employee structure and reduce labor cost, amount of employees will face to be laid off. Such a large personnel change will cut down the investors’ trust, because the investor will suspect the stability of the new combined company. Even two similar technology companies still have different corporate culture which can represent the companies’ brand images and affect the customers’ loyalty. They may produce the similar products, but they may differ in the business ideas and background. Hence, how to integrate two companies’ corporate culture in order to exert the joint corporate value is difficult for the new combined company. If the new combined company abandoned one of the company’s corporate culture, they will lose part of customers who already lose the faith to the company.