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Which challenge is described as among the hardest when two large firms merge?
AUniting the cultures to create a single business
BChoosing a new name for the merged company
CDeciding which stock exchange to list shares on
DAgreeing the price to be paid for the acquisition
Answer & Solution
Correct answer: A. Uniting the cultures to create a single business
1. A merger raises structural questions about centralization, about grouping by geography or product line, and about consolidating cultures.
2. Beyond designing a new structure, one of the most difficult challenges is uniting the cultures and creating a single business.
3. Failure to merge cultures effectively can have serious effects on organizational efficiency.
4. Naming, listing, and pricing decisions are settled before the integration work even begins.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.8 Structuring for Global Mergers_
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