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Failure of Mergers: Examples

08.25.2009 · Posted in Business News Article

Corporate culture is the way an organization views itself, or its written and unwritten policies and procedures. Experts urge that in order to get a good organizational fit, one should look at its own corporate culture and try to acquire similar companies. One thing that can tear a merger apart is the attitude of “us versus them”. This attitude is the reason of failure for most of the mergers. It is believed that if culture is the problem in a merger, it can have overwhelming effects on the newly formed company.rnrnAccording to Paul Temple Organizational fit is “the match between administrative practices, cultural practices and personnel characteristics of the target and acquirer. It influences the ease with which two organizations can be integrated during implementation

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