Merging Oraganizational Culture

Organizational culture is a “Collective programming of the mind which distinguishes the members of one organization from another” (Hofstede, 1998).

Mergers and acquisitions help a company renew its market position at a speed not achievable through internal development, it implies the reconstruction of a new social identity.

The integration process is the real source of value creation in acquisitions.

Creating value is to create economies of scale, economy of scope, increase revenue or market share, geographical or other diversification and resource transfer.

Two organizational integration variables are particularly relevant in the acquisition process: The motive of the acquisition and the process of implementation.

Acculturative process is the way in which two groups adapt to each other and resolve a conflict, it occurs when there is cultural differentiation or organizational forces reject integration.

The success of an integration relies on the managers ability to reconcile the need for strategic interdependence between the two firms, the need for organizational autonomy and the existence of cultural fit.

Managers focus on three particular cultural modifications:

• ·         Support for a global view of business.
• ·         Reinforcement of ethical behavior.
• ·         Empowerment of employees to excel in product and service quality.

BIBLIOGRAPHY 

Alzira S., Wayne H., and Gerald V. (2003) “Challenges and opportunities in mergres and
acquisitions: three international case studies – Deutsche Bank-Bankers Trust; British Petroleum-
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to the acquired firm, and acquisition process: an empirical analysis”, Journal of Management, Vol.
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real world and you. 

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