The Purchase of MBNA by the Bank of America

736 WordsFeb 20, 20183 Pages
As headlined in the media each day, society has seen many company mergers because of the bad economy. Many of the mergers lead to culture clashes and in the end fail. However, in 2005, Bank of America announced its $35 billion purchase of MBNA a credit card giant, many believed this merger would join with the pile up of those done in by cultural differences (Robbins & Judge, 2009). Although these two companies were different in many ways and the cultural differences were a recipe for disaster, the employees agree the merger has worked (Robbins & Judge, 2009). In the following case study, questions will be answered to gain insight into mergers don’t always lead to culture clashes. Questions and answers In what ways were the cultures of Bank of America and MBNA incompatible? The major differences in the two companies stemmed from the lifestyles of how the companies functioned. Bank of America grew by thrift and was an operation of low-cost and no-nonsense. BOA believed speed was not important and size and smarts were more important. As for the card giant MBNA, employees were accustomed to the high life with lavish surroundings, a golf course at the headquarters, and generous perks such as employee’s enjoying high salaries. Additionally MBNA’s unrestrictive entrepreneurial spirit was quite secretive; however, had a fleet of corporate jets, and private yachts. Why do you think their cultures appeared to mesh rather than clash? The cultures appear to mesh because BOA and MBNA

More about The Purchase of MBNA by the Bank of America

Open Document