Reply To: Why does culture matter so much?


aditi chandra

The most important key to successful mergers and Acquisition is the integration of two companies. Two companies can be merged and can operate efficiently if the culture of both companies is similar. The employment benefits, policies, HR, management, diversity, etc should be alike for successful integration. More efforts will go into the integration of the companies and instead of creating synergies, it will be a burden for management. One of the example is in our case study of Air India. In past, so many de-merger have happened because of failed integration of companies and the major reason was cultural barriers. However, if two companies merge and possess different cultures they should operate independently with minimal integration points like Facebook and Instagram.

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