13 May 2007

Mergers and Acquisitions breeds Mediocrity

Sometime over the past week, I either heard in a podcast or read it somewhere about how when companies merge or acquire one another, one of the companies takes on the other's rules, policies, and procedures. That's a great idea, that way everyone is on the same sheet of music.

Well there is a problem, there are organizations that are not undergoing an M&A but for the sake of change or even to make an already bad situation better start to take on the look and feel of other companies/organizations. While this may appear to be a good thing, it actually ends up doing nothing for the organization that wanted the change or needed to get out of a bad situation.

This is because they are not changing anything. They are not being innovative or creative, they are only doing what the other guy is doing and to the other guy, its the same old thing that they have always been doing. Therefore, this means that while it may work in an M&A situation, it won't in a critical change situation in fact it just means trading in old mediocrity for new mediocrity and is that a good thing?

1 comment:

Unknown said...

Mergers and Acquisitions are terms almost always used together in the corporate world to make reference to two or more companies becoming a member of to type one business. More often than not a merging is where two businesses of approximately equivalent size and durability come together to type a single business. Both companies' shares are combined into one. An acquistion is usually a larger organization buying a compact sized one. This takes the way of a takeover or a acquistion, and could be either a friendly partnership or the result of a aggressive bid where small sized organization has very little say in the matter. The small, focus on organization, stops to are available while the obtaining organization is constantly on the business its stock.

Mergers Acquisitions