An effective integration of different organisational cultures is frequently considered as an crucial factor that determines the success of mergers and acquisitions (M&A) (Weber, 1996; Teerikangas and Very, 2006). For instance, the recent case of L’Oréal reselling The Body Shop after a brief takeover was interpreted as a result of distinctive cultural differences (Agnew and Daneshkhu, 2017) despite that L’Oréal has effectively managed many subsidiaries in the global market while sustaining a strong French image (Hong and Doz, 2013).
Discuss the importance of effective organisational culture changes and integration in M&A by drawing on theoretical and empirical evidence as well as examples of the existing organisational practices.
What are the obstacles to changing and integrating organisational cultures?
– How does changing organisational culture affect employees, especially in M&A?
– How to effectively manage resistance to organisational change?
– What lessons could be learned from past M&A failures resulted from differences in
organisational culture?
– What good practices from examples of successful cultural integration and change in
M&A could be adopted by organisations in similar situations?
