TITLE
Implementation of organizational culture following a merger: case studies of Arla Foods and Stora Enso
AUTHOR
Grankvist, Anna; Kollberg, Carolina; Persson, Anna
DEPARTMENT
Business Administration and Social Sciences / Industrial marketing and e-commerce
SUMMARY
The conducting of mergers has become an increasingly popular option for
organizational expansion and growth. However, despite their popularity, less
than 20 percent of these alliances reach their anticipated purpose. The main
reason behind the failures is managers’ neglect to consider human and
cultural factors during the implementation phase. The purpose of this thesis
is to gain a deeper understanding of the issues involved in implementing
organizational culture following a merger. For this study, four interviews
and complementary documentation have been utilized. Our findings indicate
that in order to succeed, leadership styles and communication strategies
need
to be integrated and adapted to suit the new organization. Employees are
likely to react with initial resistance toward the merger, but depending on
the extent to which they are affected, and how much information they gain,
the resistance can be reduced. Several factors are significant for cultural
integration, such as uniting the senior management, formulating a common
vision, building trust, and providing as much information as possible.
ISSN 1404-5508 / ISRN LTU-SHU-EX--05/018--SE / NR 2005:018
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