It appears that the cultures appeared to work rather than clash because of Bank of America’s experience in mergers and acquisitions. After Bank of America acquired MBNA, BOA went through and selectively determined which aspects of the corporation they could keep and which they could do away with. While there was a level of employee departures after much of the job perks were eliminated, the company was able to retain much of the talent. Ultimately, it seems BOA’s ability to mesh the two cultures through their experienced approach was the leading force in making the merger work.
Culture is important to the success of a merger acquisition. Culture constitutes the backbone of any corporate model and is not simply the indicative of social relations within the company. Even in corporations that are not reliant on a heavy emphasis on independent thought, the nature of culture is reflected in the very structure and work processes that constitute an organization. I believe that oftentimes mergers fail because the structures of these organizational cultures are not just different, but structurally incompatible. While Bank of America and MBNA’s culture was on different spectrums, they were still on a structural level that made it possible for a successful merger.
I believe that a component of the smooth transition is attributable to both companies glossing over differences in an effort to make the merger work. Still, I believe that this is not a primary component of the merger’s success. In large part employment options, especially in the post-recession context, are determined by market factors and necessity. This places employees in a situation where ‘extraneous culture elements’ – golf courses, etc. – are amenities, but not essential to operations. It’s more necessary to consider structural components, such as skillsets, and how these elements are aspects of the culture. If these structural components are ...
Cite this document
(“Mergers don't always lead to culture clashes Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/474691-mergers-dont-always-lead-to-culture-clashes
(Mergers Don'T Always Lead to Culture Clashes Essay)
“Mergers Don'T Always Lead to Culture Clashes Essay”, n.d. https://studentshare.net/miscellaneous/474691-mergers-dont-always-lead-to-culture-clashes.
According to this policy, people who indulged in sexual relationships with members from the same gender would not be allowed to serve in the US military if they tended to be overt in their expression of sexuality. It was believed that hiring of such people in the military would expose the US military to a lot of risks and challenge its exceptionally high standards of discipline, order and morale which were the most important qualities of the US military and could not be compromised upon in any case.
The acquisition of MBNA by Bank of America was never described as hostile. Bank of America even presents expanded opportunities for MBNA employees that plan explore in other expertise. One of the mot important aspects that resulted to positive integration on MBNA is respect.
When merging companies, the company’s culture cannot be ignored (Vachon, 2007). For the merger to be successful, the management of the two companies has to agree on what to adopt and use on the new company. The merger between the Bank of America and the giant card company, MBA, is an example of companies with two different cultures.
Man has always tried to conquer the unconquerable and do the undo able this is the same factor that drives the companies into the abyss of the unknown (Allan and Michael, 2010). In a bid to outdo and outsmart the competitors and get the upper hand of strategic advantages, companies cannibalise other companies or in some cases form understanding relationship.
Effective leaders are the one who create the plans, imagines the vision and mission, secures the resources and ensures correct allocation of these resources to fix errors hindering the overall potential of gaining success (Avolio & et. al., 2003). Arguably, it is often affirmed that good and effective leaders always make a believable and realistic plan, which can be modified or customized in order to ensure the sustainability of the business during uncertainties or when implementation of change is needed to be executed.
This paper focuses on the motivating factors toward mergers and the problems caused by these mergers.
In this section we discuss why firms merge, some of the reasons why firms merge include the effort to gain market power, tax advantages of gaining a loss making firm, efficiency, increasing market share and diversification among other factors.
independent business corporation into a single enterprise which is accomplished by one firm purchasing the assets of the other or by purchasing its equity stocks is called a merger (Britannica). The history of mergers dates back to the 1960’s when these arrangements occurred
ugh the method has been employed by many companies around the world, it has been reported that half of these companies fail to achieve their goals of merging. To avoid these failures, companies have been advised to observe best planning methods before engaging in the business.
In this report I have written on who benefits between the industry and the consumer in case of a merger. Report finds that both benefit.
American aviation industry has been qualified us the most profitable