How Corporate Culture Is Important For The New Company

1287 WordsMay 5, 20166 Pages
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. How to integrate the two technology companies’ technology is important for the development of the new combined company in the future after merging. If two companies have lots of overlapping business and their technologies level are different, then the new company must consider integrating the technology to complement and balance the technology level so that can promote the development of the new combined company. If the compatibility of the technology cannot reach to an ideal level, it will offset the positive merger synergies on some extent and the merger will become a
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