Corporate culture is an important phenomenon of organizations. Values, visions, norms, language, beliefs and habits of the organization are fixed in the cultures contents. A good working culture is important for the company’s success and profit situation. The globalization leads to a dramatic process in the economic markets. Takeovers, cooperation and mergers are typical consequences of the new economic era. This market process is also responsible for the collision of corporate cultures. Different needs justify that willful intervention in the culture system after a takeover. Dissatisfaction, isolation and inefficiency are only a few reasons why a cultural change is recommendable. For a successful change it is decisive to know everything about the old culture and to know what to do for changing it. Several theoretical models and strategies have been developed for this issue. The most reason why a change fails is that problems and limitations have not been taken into consideration or have not been handled the right way. Culture guides should lead the employees thru the changing process and should help orientating.
The change of a culture is a long way and many do are not patient enough to wait. The success of a change is based on many task but the important task is to recognize that problems occurring during the changing process are usual and the solving of these problems lead to the new culture. Problems are indicators for mistakes or wrong planning which have to be solved. Changing operators have to recognize problems as chance for succeeding.
Table of Contents
1 Introduction
2 Problem Definition
3 Objectives
4 Methodology
5 Main Part
5.1 Theoretical Models of Corporate Culture
5.1.1 Deal & Kennedys Four Cultures Model
5.1.2 Edgar H. Scheins Three Levels of Culture
5.2 The Need for Culture Change
5.3 Ways to Change Culture
5.3.1 Cycle of Cultural Evolution in Organizations, Dyer
5.3.2 Culture-Management-Process
5.4 Problems and Limitations of Changing
5.5 Business Case “Credit Mutuel Group”
6 Results and Conclusion
Objectives and Core Topics
The research examines the complexities of corporate culture integration following corporate takeovers, specifically focusing on identifying common obstacles, managing cultural collisions, and establishing successful change strategies.
- Theoretical frameworks for analyzing organizational culture (Deal & Kennedy, Edgar H. Schein)
- Drivers and necessity for cultural transformation in post-merger environments
- Methodological approaches to navigating organizational change processes
- Challenges, pitfalls, and inherent limitations of imposing new corporate values
- Practical case study analysis: The acquisition of the German Citibank by Credit Mutuel Group
Excerpt from the Book
5.5 Business Case “Credit Mutuel Group”
A business case of changing an organizational culture should illustrate which mistakes can be made and should give answers about how problems can be recognized and solved. The business case is developed out of experiences of the author. After the breakdown of the financial markets in 2007, the American Citigroup had to fight for survival. The company urgently needed money to reconcile its balance sheet and not to go into bankruptcy. The fastest way to get money is to sell parts of the group and so did Citigroup. It sold its German subsidiary in the retail banking to the French cooperated banking group Credit Mutuel. At this time, Credit Mutuel was on an expansion course and looked for interesting investments outside France. Because of its save and long term investments, Credit Mutuel had no financial problems during the financial crises, on the contrary the French bank had too much money and the market situation somehow forced the bank to invest. In 2009, after long negotiations, Credit Mutuel bought the German Citibank and tried to change the corporate culture of the German bank. Before explaining what the Credit Mutuel Group exactly did to change the corporate culture and if it was successful, it is necessary to know what the several companies stay for and to find something out about the different culture types with the help of the mentioned theoretical models. Figure 5 shows the facts and orientations of the two different organizations. It can be noticed that the German subsidiary of Citigroup has a completely different organizational structure, economic goals and corporate identity as the French Credit Mutuel Group and these differences could be responsible for a failure of the changing.
Summary of Chapters
1 Introduction: Provides an overview of the dynamics of modern markets, the prevalence of mergers and acquisitions, and the critical importance of cultural integration for HR departments.
2 Problem Definition: Outlines the core challenge that integration often fails due to a lack of knowledge regarding how to navigate and manage cultural change after a takeover.
3 Objectives: Defines the goal of identifying potential problems and limitations in cultural change processes and establishing methods to handle them effectively.
4 Methodology: Explains the analytical approach, utilizing theoretical models by Deal & Kennedy and Edgar H. Schein to provide a framework for evaluating cultural change.
5 Main Part: Offers a deep dive into cultural models, the necessity of change, management processes, and the practical application of these theories in the Credit Mutuel case study.
6 Results and Conclusion: Summarizes findings by emphasizing that cultural change, while often necessary for productivity, requires deep analysis, patience, and professional leadership to succeed.
Keywords
Corporate Culture, Takeover, Merger, Cultural Change, HR Management, Organizational Behavior, Cultural Collision, Change Management, Deal & Kennedy, Edgar H. Schein, Citigroup, Credit Mutuel, Productivity, Integration, Leadership
Frequently Asked Questions
What is the primary focus of this research?
The study investigates the difficulties and limitations that arise when attempting to transform corporate culture within an organization following a takeover or merger.
What are the central thematic areas addressed?
The work explores theoretical models of organizational culture, the drivers of cultural change, the specific challenges encountered during integration, and the practical lessons learned from real-world banking acquisitions.
What is the overarching research goal?
The goal is to determine why cultural integration often fails and to identify key strategies—such as the use of culture-guides and patient leadership—to effectively manage these transitions.
Which academic methodologies are applied?
The research relies on a theoretical review of established organizational models (specifically Deal & Kennedy's Four Cultures Model and Edgar H. Schein's Three Levels of Culture) combined with a comparative case study approach.
What does the main section of the paper cover?
The main section details cultural frameworks, explains why companies undergo cultural shifts, discusses the cycle of cultural evolution, and analyzes the specific pitfalls of management-led changes.
Which terms best characterize this work?
The paper is characterized by terms such as Corporate Culture, Change Management, Post-Merger Integration, Cultural Collision, and Organizational Leadership.
Why did the integration process in the Credit Mutuel case lead to disappointment?
The failure was primarily attributed to not replacing the existing management, the absence of culture-guides to support employees, and the attempt to impose a culture that did not fit the competitive realities of the German banking market.
What role does "time" play in the author's conclusions?
The author identifies time as the most critical factor for success, noting that hasty implementations often lead to employees falling back into old habits, which ultimately compromises the goals of the new culture.
- Quote paper
- Diplom-Kaufmann (FH) Johann Gross (Author), 2013, Corporate Culture: Problems and Limitations of Change after a Takeover, Munich, GRIN Verlag, https://www.grin.com/document/210072
