Mergers and acquisitions (M&A) and Joint Ventures are key growth strategies for many organizations engaged in the realm of International Business. Whether it is entering new marketplaces, acquiring new technologies, or leveraging partnerships to bring scale, specialized skills and size in a competitive landscape.

Understanding International Culture and your counterpart's corporate culture is critical during times of notable change. When two organizations are brought together through for economic reasons, it is doubtful the two cultures will remain precisely the same. How would leadership prepare for this? According to research, 50% to 85% of mergers fail to deliver on shareholder returns despite the best intentions. Often a major reson for this is a clash of culture that damages relationships, perceptions and synergy of operations. This clashing of organizational culture is the most cited reason for failure.

To achieve the desired economic goals of the new organization, the two cultures must harmonize. The leadership challenge is to figure out the best way to manage the formation of a blended new shared culture. The best method to achieve the goals of the merger or acquisition is to identify the best parts of both cultures, bring awareness and to create a new harmonized culture. There is much that can be learned from corporate cases of culture clashing.

 

List an example from the corporate world where cultures have "clashed"

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One example from the corporate world where cultures have clashed is the merger between DaimlerBenz a ... View the full answer