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Case Study

The post-merger dilemma (cartoon case)

By Margaret Cording and Carlos Bauler

5 pages

December 2011

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Reference: IMD-3-2252

Two mid-sized oil and gas companies merge. The cultures of these two firms are very different: The acquirer (Dig Deep) is known for its high ethical standards and long-term focus, while the acquired firm (Extract More) is more short-term financially driven. One early challenge is to embed the Dig Deep culture into the Extract More employees. Progress is being made, until a key decision regarding the terms of a supplier’s contract must be made. Participants must unpack the issues involved in balancing short-term financial requirements with decisions that have “long legs” in terms of establishing and managing a new cultural environment.

Learning Objective

To better understand the lasting costs of relatively small and insignificant decisions made while integrating two firms.

Keywords

Post-merger Integration, Oil, General Management, Strategy

Settings

United States of America
2011

Type

Generalized Experience

Available Languages

English

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