Organizational Culture Of The M A - 1235 Words

Question #1 Select a pair of organizations that have gone through a process of Merger and/or Acquisition (MA), describe the culture of the organizations prior to the MA. Provide examples that illustrate aspects of the organizational culture. Describe the process of MA. Did the process succeed, if yes, please outline the reasons of success, impact, etc..? If the MA did not succeed, why did it fail, impact, etc..? Give examples wherever appropriate. The two organizations that are selected for the process of merger and/or acquisition (MA) are Chrysler and General Motors. This proposed merger dates back to the year 2008, when the United States economy was in a far different state then the present day. The Great Recession was beginning to†¦show more content†¦Calamites such as botched mergers of BMW and Rover, or Ford’s buy of Land Rover and Jaguar, or Daimler and Chrysler from a few years prior. The current proposed merger of General Motors and Chrysler was brought up due to the economic conditions, as both companies were suffering tremendously despite governmental intervention by the Federal Reserve. Prior to the planned merger, General Motors had been in constant state of restructuring dating back to 1993 [1]. These past 15 years for General Motors consisted of constant buyouts, write-downs, streamlining, plant closures, dealer write-offs, and other restructuring efforts. Real sizeable profits came during the lat e 90s to early 2000s when gas prices were cheap (owing to the line of trucks and SUVs cranked out by General Motors) and housing prices were over inflated. There were very few car companies that did not earn decent profits during this timeframe, but any other cyclical downturn of the economy sent General Motors into a tailspin financially. In fact, General Motors was often termed the car company that was too big to fail, where the ultimate size of the corporation seemingly was the only factor keeping it alive. To increase this size, Chrysler was offered to merge with General Motors. Chrysler was in slightly better shape, but still failing in 2008. Recent years displayed modest profit, but similar turmoil amongst the upper management caused some re-organizing of the company in the early 2000s [1]. While