Assetone Case Study Organizational Culture

To begin with, AssetOne had several problems. Main one was the former performance of the company itself. Afterwards, having acquired TaurusBank, the company did not take care of the organizational culture, yet focused only on tasks with bureaucratic approach.

Talking specifically, executives of AssetOne could not make decision on critical things quickly since AssetOne was too formalized. Thus, AssetOne is too centralized. For example, acquired firm did not perform well after acquisition due to centralization. Previously, TaurusBank was giving investment fund division freedom to launch new products without approval of executive team, which was not found in AssetOne’s culture.

To put in a nutshell, AssetOne is mechanical structured organization and TaurusBank is organical structured one.

Moreover, according to conflict process model, there were differentiation problems, when two parties’ had different values, beliefs and experiences. Clients, i.e. external environment was dynamic and stable for TaurusBank and AssetOne respectively. Differentiation was inevitable in this acquisition where employees brought divergent corporate cultures into new combined organization. Employees argued over the correct or appropriate actions and decisions based on their unique experiences.

actions of founders and leaders. They can model new culture through subtle decisions. More precisely, the AssetOne executive should take into consideration acquired firm’s previous organizational culture. For instance, AssetOne had rule-oriented culture, whereas TaurusBank had innovation culture. Likewise, they might be had controlling and flexible culture respectively. By paying attention to these points, AssetOne can combine some attributes of each organizational culture and make new one. Noteworthy, AssetOne should apply adaptive culture, because they can satisfy customer needs and consequently match with TaurusBank’s