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Business Acquisition: Growth Strategy Impact

Companies today are frequently looking for ways to expand and grow their products and services. As a strategy, pursuing mergers, acquisitions and joint ventures can provide a means to create value by: 1) acquiring technologies, products, and market access, (2) creating economies of scale, and (3) establishing a global brand presence.
Companies with different cultures can find it difficult, if not impossible, to make decisions quickly and correctly or to operate effectively. Review the reading below and then respond to the Discussion prompt.
Sometimes, however, the merger or acquisition structure can create a sense of “disconnect” that may diminish the intangible value that many companies work so hard to establish. The business world can become littered with integrated companies that have lost value for shareholders, opening questions like: When is a company too big? What can overcome the loss of familiarity, and maybe even brand, and still provide the advantages of economies of scale?
Chmielecki, M., & Sułkowski, Ł. (2016). Organizational Culture in Mergers and Acquisitions. Journal of Intercultural Management, 8(4), 47–58. https: //doi.org/10.1515/joim-2016-0023
Deliverable: On the Discussion Forum, post a 300-word response to the following question(s)/prompt(s), include at least one APA-formatted citation/reference to a source from this lesson.
• Why is a clash of organizational cultures often overlooked as a probable cause for the failure of a merger or acquisition?
• What negative impacts can result, when the companies involved do not demonstrate a commitment to recognizing cultural issues.