Cultural Conflict In The Corporate Mergers And Acquisitions And Integration

Merging and reconstructing is a way for a company to expand quickly and optimize its structure and is also an important choice for domestic and international enterprises. According to one company's investigation of 115 merging cases in Western and Asian Countries, the differences of culture is the main factor which resulted in a failed merger. The investigation of companies' reconstruction indicated that during a ten-year period just about one quarter of the companies were successful and the problem of mixing of cultures was seen as a key component. The merging and the reconstruction surely bring change of organizations and the clash of culture. 70% of merged companies did not achieve their expected business valuation, in which approximately 70% failure resulted from integration with merging. And the cultural conflict and the failure in integration are one of most important reasons. According to the study statement from home and abroad, this article has analyzed some shortage of current theory, from merging motivation, tells the reason and performance of culture conflict, during company merging, from which this article also analyzes the failure of company merging. Moreover, based on empirical investigation, it suggests the method and pattern, which solves the culture conflict in company merging and integrates culture, and puts forward control of company culture after integration so as to make merging and reconstructing as a development strategy for company to quickly expand and optimize structure.