There’s a saying that opposites attract! I’m not sure if the saying also addresses whether these opposites survive each other and thrive!! Similarly, when companies with fundamental cultures merge, will that lead to a successful integration and secondly to further growth. I would tend to say no because culture impacts employees’ disposition and hence it bleeds into the fiber of the company. However, I would be interested in others’ perspectives and why.
Always that the resources allocation, processes and value formula (financial targets) are similar integration can be successful. If business models are different, then only one management team will remain, that is the buyer team. A clear example is the merger of Daimler and Chrysler, too different ways (resources allocation and processes) to produce and sell cars.
Thanks. So, your point here is that, if the companies are diametrically different in the fundamental approaches, and they do merge, the parent company’s model/culture will survive. Agree, but I wonder about the success of the actual integration and the journey to get there.
Good day. A big if – if the acquiring company is allowing the target to maintain day to day operations and independent P&L, perhaps differing cultures could work. Note the caveat is that they are not really integrating but part of umbrella organization. Otherwise, I think it would be fairly difficult to be diametrically different and succeed long term. Great thought provoking question.
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