Mergers and Acquisitions

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Mergers and acquisitions have become the most dramatic demonstration of vision and strategy in the corporate world. With a single move, managers can change the course of their companies, their careers, as well as create value for their shareholders. This explains why companies are combining today in record numbers. Executives pursue mergers and acquisitions as a way of creating value by acquiring technologies, products and markets access; creating economies of scale, as well as establishing global brand presence. However, the business milieu is littered with integrated companies that have lost value for shareholders. This paper examines culture as the major factor that has counteracted the value-creation energies of economies of scale and global market presence in mergers and acquisitions. Culture has emerged as one of the most dominant barriers to effective integrations. Therefore, there is a need for managers to effectively manage cultures during mergers and acquisitions. 2.0 Different Definitions of Culture 2.1 Different Constructs For Defining Culture Culture has been defined from a number of constructs. Historical definitions refer to culture as a social heritage or tradition that is passed from generation to generation. Behavioral definitions view culture as shared and learned human behavior, usually implying a way of life (Naylor 3). Normative definitions of culture equate culture with ideas, values, or rules for living. Functional definitions see culture as the way human beings solve problems in adapting to the environments they live in (Naylor 3). Other definitions depict culture as a complex of ideas or learned habits that inhibit impulses and differentiate human beings from other animals. Structural definitions perce... ... middle of paper ... ...r Value through Mergers and Acquisitions. Hoboken, NJ: John Wiley, 2011. Print. Denison, Daniel, Bryan Adkins and Ashley Gudroz. Managing Cultural Integration in Cross- Border Merger and Acquisitions. Advances in Global Leadership 6(2011): 95-115. DePamphilis, Donald. Mergers And Acquisitions Basics: All You Need To Know. Burlington, MA: Academic Press, 2011. Print. Hofstede, Geert. Cultures and Organizations: Software of the Mind (3rd Edition) London: McGraw Hill, 2010. Print. Nahavandi, Afsaneh and Malekzadeh, Ali. Acculturation in Mergers and Acquisitions. The Academy of Management Review 13.1(1988): 79-90. Naylor, Larry. American Culture: Myth and Reality of a Culture of Diversity. New York: Greenwood Publishing, 2003. Print. Schwartz, Shalom. A Theory of Cultural Value Orientations: Explication and Applications. Comparative Sociology 5.2(2006): 137-183.

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