Case Study: Mergers Don’t Always Lead To Culture Clashes

781 words - 3 pages

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Mergers Don't Always Lead To Culture ClashesDale A. MillerUniversity of PhoenixCJA/473September 24, 2010Gary VernonIntroductionA case study is a form of qualitative explanatory research that is used to look at individuals, a small group of participants, or a group as a whole. Research on case studies allows people to understand complex issues that can extend experience and add strength to previous research. Case studies articulate detailed analysis of a minimal number of events and their affairs. This paper will look at the case study entitled "Mergers Don't Always Lead To Culture Clashes". This paper will answer 4 questions in regards to the case study giving adequate feedback about the questions being asked.In what ways were the cultures of Bank of America and MBNA incompatible?The cultures of Bank of America and MBNA were incompatible because MBNA's culture was characterized by a free-wheeling, entrepreneurial spirit that was also quite secretive. MBNA employees also were accustomed to the high life. Their corporate headquarters in Wilmington, Delaware, could be described as lavish, and employees throughout the company enjoyed high salaries and generous perks from the private golf course at its headquarters, to its fleet of corporate jets and private yachts. Bank of America, in contrast, grew by thrift. It was a low cost, no-nonsense operation.Unlike MBNA, it believed that size and smarts were more important than speed. The cultures of both companies were so different that they became incompatible. However, to everyone's surprise the merger worked. This was done by Bank of America's respect for MBNA's culture.Why do you think their cultures appeared to mesh rather than clash?Both Bank of America and MBNA appeared to mesh because executives of both companies began by comparing thousands of practices covering everything from hiring to call-center operations. Because of this, both cultures co adapted. MBNA's dress code was much more formal than Bank of America's business casual approach. In the end, a hybrid code was adopted, where business suits were expected in the credit card division's corporate offices and in front of clients, but business causal was the norm otherwise.Do you think culture is important to the success of a merger/acquisition? Why or why not?This author believes that culture is important to the success of a merger/acquisition because with culture, the two companies or organizations...

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