Managing Culture Clashes in M&As

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Laeser, Anna
Managing Culture Clashes In M&as

Merger and acquisition activities have become an integral part of today's business world. They are considered as strategic component to gain market shares and extend product portfolios. Still, these transactions have a huge impact on an organization. This paper looks specifically at the M&A impact on company culture. Based on an analysis of identified key elements, which drive a M&A process, a cultural integration toolkit will be developed to solve identified cultural problems. Secondary data serves as source data for an inductive approach. Cultural problems and key drivers will be identified based on systematic research. The implantation of these key drivers in existing integration models will be further studied. Findings prove that not all of the identified key drivers are implemented in the models. Therefore, existing models solve the identified cultural problems semi-efficient. This leaves the need for a basic integration tool, which implements all key drivers, serves as guideline through an M&A process and provides specific instruments for realization of single steps. This paper develops such a basic integration toolkit in chapter five. The toolkit meets all these requirements and proves that managing culture clashes in M&A's' is possible.   Auszug aus dem Text Text sample: Chapter 3, Impact of M&A's: After defining the framework for M&A correlations in the previous chapter, this chapter highlights M&A consequences. These impacts on organizations have direct impact on their culture and vise versa because culture is embedded within the organization (Carleton, 2004, p. 32). Sample impacts will be presented referring to M&A stages and outlining cultural problems. Key elements, which are needed to solve these problems, will then be derived. 3.1, In General: The following example is based on a study by marketline, 2011. The second largest player in the pharmacy industry with an M&A history back to 1800 acquires companies around the world. Still, the company had faced a failure in ist R&D pipeline after the last merger. In contrast to that they started an operational program which has compensated this shortcoming largely and led to market growth of 15% outside the US and Europe. This example reflects direct impacts of M&A's on performance but it also proves the company's M&A strategy, which obviously had cultural problems mitigated if not eliminated. Furthermore an M&A success role is more essential in deal making then size and frequency of deals (Cottin, 2011, p. 1 and Rehm, 2012, p. 5). When two companies are involved in a merger or acquisition one overall dilemma occurs: culture clash the meeting of organizational and national culture at both sides. This leads to culture integration problems in most cases. 3.2, During the M&A Stages: This section focuses on the M&A impacts during the transaction stages. The pre-merger phase includes among others negotiations (Schneck, 200

Diplomica Verlag, ISBN: 9783954891528

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