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Mergers Don't Always Lead to Culture Clashes Paper

  • Submitted by: ladyred
  • on September 18, 2012
  • Category: Social Issues
  • Length: 727 words

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Below is a free excerpt of "Mergers Don't Always Lead to Culture Clashes Paper" from Anti Essays, your source for free research papers, essays, and term paper examples.

Mergers Don't Always Lead to Culture Clashes Paper
Culture can be identified through ethnic background, religion, and simple beliefs. Culture clashes in businesses can differ in many ways, a merger involves different companies can be smooth or a rough transition for everyone who has invested time and money. No two company’s corporate cultures are the same. When two of America’s biggest companies merge there can be difficulties, naturally and quite often, one company will win and the other company will lose.
The cultures of Bank of America and MBNA were incompatible because MBNA's culture was characterized by as a “free-wheeling, entrepreneurial spirit that was also quite secretive” (Robbins & Judge, 2009). MBNA employees also were accustomed to the perks and were spoiled in a sense. Their corporate headquarters in Wilmington, Delaware, was 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, Ban of America did not offer the perks private golf course or a fleets of private jets at their disposal. “It was a low cost, no-nonsense operation”(Robbins & Judge.2009).
The different styles of leadership on both the BOA and MBNA sides differed as well MBNA’s managers were seen as arrogant and autocratic, perhaps even pompous, while Bank of America’s management were a little more relaxed and bureaucratic. The main reason that BOA and MBNA cultures seemed to mesh rather than clash, because, it is business. First and foremost it is business, with billions of dollars at stake, regardless of what one side thinks of the other side, at the end of the day it is, and always will be business. Bank of America and MBNA both were getting together to manage the cultural transition, for example comparing the many divisions and the day-to-day operations of the divisions such as the call center or the credit...

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