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

Topics: Mergers and acquisitions, Bank of America, Lehman Brothers Pages: 4 (776 words) Published: September 27, 2010
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Mergers Don't Always Lead To Culture Clashes

Dale A. Miller

University of Phoenix

CJA/473

September 24, 2010

Gary Vernon

Introduction

A 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,...

References: Robbins, S., & Judge, T. (2009). Organizational Behavior: Organizational Culture. Case Study.
Mergers Don 't Always Lead To Culture Clashes. Chapter 17, Pg. 577. [University of
Phoenix Custom e-text]. Upper Saddle River, NJ: Prentice Hall. Retrieved September 24, 2010,
From University of Phoenix, rEsource, CJA/473 - Interdisciplinary Capstone Course Web Site.
Zatz, D. (2010). Tool pack Information. Mergers and Acquisitions: Finding Synergy and
Avoiding the Reefs. Power Relationships Para.1 Retrieved September 24, 2010, from
http://www.toolpack.info/issues/mergers.html
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