Tuesday, August 01, 2006

Latest on AI-Indian Merger

The following is an interesting article. This is an article explaining the difficulties AI-Indian merger will face in streamlining the business.

On paper, mergers always look good. But, when comes to streamlining two different cultures, people, mindset, it is difficult task. People mindset is completely groomed in to one culture, and all of sudden if you try to change that you will for sure get resistance. This makes the merger more difficult.

I am of the opinion that, mergers should happen between two 'like-minded' companies and before any kind of merger, top management should think about the culture alignment and streamlining problems one might face.

I read a quote about Time Warner and AOL merger in BusinessWeek. I understood it as a 'failure'.

Even in Indian business scenarios, there are plenty of examples where the post-merger failed to yield desired results.

http://economictimes.indiatimes.com/articleshow/1837620.cms

No comments: