The role of organizational culture in merging process

M&A: "A term referring to any process by which two companies become one. In a merger, two companies integrate their operations, management, stock, and everything else, while, in an acquisition, one company buys another. Mergers and acquisitions may also refer to all legal, financial, and other issues involved before a merger or acquisition can take place." Retrieved from http://financial-dictionary.thefreedictionary.com/M%26A

We can see in this topic where some definitions from past classes can connect each other, Organizational learning and culture diversity has to do a lot with the M&A process when companies as they are doing nowadays to go abroad and look for other companies to do business. What makes every organization different is their organizational culture, which is the pattern of perception of what´s good or bad.


There are different types of M&A processes:

• Horizontal: Two companies that are in direct competition and share the same product lines and markets. 
• Vertical: A customer and company or a supplier and company. Think of a cone supplier merging with an ice cream maker
• Conglomerate: Two companies that have no common business area * Retrieved from http://www.investopedia.com/university/mergers/mergers1.asp

When Talking about Acquisition, some key aspects are relevant to have in mind:

• The integration process: Is the real source of value creation in acquisitions 
• Creation/Destruction of value: Whether if an acquisitions is negative or positive for a corporation
• Acculturative process: Resolving cultural differences within an acquisition and may generate Cultural Modifications in order to adapt to the environment