BUS 432 Study Guide - Midterm Guide: Cost Accounting, Organizational Culture, Human Capital

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 432
• Professor: Dave Thomas

Document Summary

Mergers two companies join together to create a new entity. Acquisition one company acquires sufficient shares to gain control of the other. 2 reasons for m&a: achieve competitive size, increase market share. M&a /failure: lack of a shared vision becomes a problem in post merger phase, loss of key assets. Can be employees and intangibles like relation w/ suppliers: high transition costs, lack of cultural fit cultures, hrm systems, mgmt. views etc. High coordination cost because of geographic distance. Problems with firm integration: organizational cultures, human resource systems, managerial views, other aspects of organizational life. Double-layered accularation: integration is significantly more difficult across borders, alignment of organizational and national cultures, differences in: Prevalent practices: both the org culture and the national culture, cross border m+a demands it, international mergers are more difficult because of this, 2 firm cultures and 2 national cultures, 2 type of acculturations need to happen.