C/B/285. Masters Dissertation + Proposal. The Affect of Cultural Compatibility on the Success of Mergers and Acquisition: The case of Vodafone

This dissertation examines the affect that cultural compatibility has on the success of firms engaging in mergers and acquisitions. Whilst most of the literature of mergers and acquisitions focuses on their strategic and financial importance, it is usually problems with cultural compatibility that results in so many to fail. Using two well known frameworks, Nahavandi and Malekzadehs (1988) framework for acculturation and Carter and Coopers (1996) framework of cultural integration, this dissertation investigates the reasons why cultural compatibility can determine the success of mergers and acquisitions. In so doing, it draws on two prominent mergers that took place at Vodafone between 1999 and 2000. The first was a friendly merger between Vodafone and US telecoms firms, AirTouch, whilst the second focuses on Vodafones hostile takeover of German industrial conglomerate Mannesmann. The two very different cases help to highlight the need to understand and effectively manage different cultures if mergers and acquisitions are to be successful. This dissertation would be useful for anyone interested in organisational culture, mergers and acquisitions, the case company, Vodafone, or anyone wanting to know how to do case study research.