Reply To: Reasons Mergers Fail – Culture


Kai Jie

Culture can be said to play a pivotal role in deciding whether the deal makes or breaks. Often when people from two highly disparate corporate cultures come together, they are likely to be incompatible or at best, remain as they were by operating independently of others. Putting this into an organizational context, sustaining two different cultures concurrently might only be practically possible if both entities remained independent of each other’s operations. In all other cases, cultural integration should be managed properly considering that day-to-day social interaction is almost inevitable. The failure to manage differences in corporate cultures could be an antecedent for the widespread disunity amongst staff, departure of talents, and even a potential takeover by opportunists.

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