Mergers and aquisitions

Essay by Pan413University, Master'sA+, June 2006

download word file, 3 pages 1.0

Identify any contradictions you feel exist in either cultural descriptions - any elements you don't think would exist in a real environment

As the two companies merge contradictions will continue to develop within the new company. Right now the two companies major contradictions are management styles, acquisition of software (in-house versus vendor-written), and internal cultures.

In the real world "mergers and acquisitions have only a one-in-eight success rate based on most standard metrics. Once the bankers and lawyers have departed, the various CEOs, CFOs and other executives are faced with the need to rapidly transition to a single organizational structure while trying to attain results which justify the costs, please the shareholders and keep customers loyal. Often, because of pressures of time, this is done with little sensitivity to the differing real strengths, assets and liabilities which exist between the organizations, potentially resulting in a failed merger" (Mergers, Acquisitons and Joint Ventures).

The contradiction dealing with management styles could lead to a downfall of the company. The Ouest employees are used to a hierarchal or authoritative leadership style. They have had no say in business ventures or project input. They are told what to do, how to do it and when it should be done. On the other hand, EEST is more of a people-oriented, participate leadership style. The EEST employees have been able to have input in project decisions, and will have difficulties adjusting to the new leadership. The EEST employees also have had a good reward and recognition system in place that may disappear with the merger. This could cause distension among the remaining EEST employees, in turn morale will be low.

Identify the cultural differences you think might be the hardest to reconcile as the people from each company come together in one department.