Running Head: MERGERS & ACQUISITIONS1MERGERS & ACQUISITIONSInstitutional AffiliationNameDateMERGERS & ACQUISITIONS2Cross-border mergers and acquisitions face a massive problem of integrating culturaldiversities of the two organizations merging in the automotive industry. Mergers incompanies like Renault Volvo, Citroen Fiat, and their subsequent failure were attributed tocultural differences in the organizations which were not adequately integrated. Eachcompany had its organizational structure which was different compared to the other.Employees were not well integrated, and therefore each felt that the merger threatened theircorporate culture. Decision making was also a hurdle as some companies had centralizeddecision-making process while the other had free associations among staff member (Hopkins,2002).The cultural problems affected the execution of strategies by the companies as eachcompany came with its way of implementing a strategy. An example is the Daimler Cryslermerger where Chrysler favored trial and error method when executing a strategy, unlike Daimlerwhich required the implementation to be planned and detailed. To avoid the cultural clash inmer ...
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