THE ROLE OF MERGING IN ORGANIZATIONAL CULTURE

M&A or well known as Mergers and Acquisitions refer to the concept of corporative strategies, used by the executives of big enterprises to combine or acquire other enterprises or other assets. Companies do these strategies in order to reach goals of like for example expansion, enter easier to a market (especially another country), among others.

Merger is the union of two or more independent companies, who decide to join together their capital and their patrimony to set up a new company, bigger than each independent company. On the other hand Acquisitions consist on the purchase of the stock package of other legal person (other company), without merging their capital.

There are some obstacles for merging and acquisition processes, and even more when the M&A process is going to take place with enterprises located in different countries, some of these obstacles are:

•  problems of cultural integration between both participant companies.
• Overestimate the synergies.
•  Excessive prices.
• Incorrect definition of the objectives of both enterprises
• Higher expectancies 
• Governmental influences

That’s why most of the times, the idea of M&A are not well received by workers of the organizations, because it implies a lot of organizational behavior changes inside the company and it may decrease workers motivation, or just different values and beliefs about the work place between workers from both enterprises, and as a result of all, there would be caused a decrease of company’s performance. In now days, M&A process become easier than before as a consequence of all of technology and globalization issues that we have in the actuality, it means that because of these issues, enterprises and organizations in all the world have changed their mind in terms of inside policies, so most of the companies around the world use similar structure so it become a better environment of work when two organization decide to integrate each other.

QUESTION:

According to “Merger & Aquisition and Growth Advisors to Credit Unions” there are 7 steps that companies in acquiring process have to do. Those are the steps: 

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  BIBLIOGRAPHY:

New perspective for the management of M&A process: a merger case of a Japanese pharmaceutical company: Sotaro Shibayama, Kunihiro Tanikawa and Hiromichi Kimura. Retrieved from: http://www.emeraldinsight.com/journals.htm?articleid=1906957

Challenges and opportunities in Merger and Acquisitions. Handbook of Organizations and cultures.

VOLVO fights to keep its cultura. Goliath Business Knowledge on demand. Retrieved from: http://goliath.ecnext.com/coms2/gi_0199-3529537/Volvo-fights-to-keep-its.html

The culture of Sweden.Kwintesential. Retrieved from: http://www.kwintessential.co.uk/resources/global-etiquette/sweden.html

Study on Enterprise Cultural Integration after Geely’s Acquisition of

Volvo Chen Xiaohui, Liao Haiyan School of Management, Wuhan University of Technology, Wuhan, Hubei, P.R.China, RETRIEVED FROM: http://www4.pucsp.br/icim/ingles/downloads/papers_2010/part_5/61_Study%20on%20Enterprise%20Cultural%20Integration%20after%20Geely_s%20Acquisition%20of.pdf

Challenges and opportunities in Merger and Acquisitions. Handbook of Organizations and cultures.