Organizational Culture Supplemental Case:
Asset-One Bank is one of Asia's largest financial
institutions, but it had difficulty entering the personal
investment business where several other companies
dominate the market. To gain entry to this market, AssetOne decided to acquire Taurus Bank, a much smaller
financial institution that had aggressively developed
investment funds (unit trusts) and online banking in the
region. Taurus was owned by a European conglomerate
that wanted to exit the financial sector, so the company
was quietly put up for sale. The opportunity to acquire
Taurus seemed like a perfect fit to Asset-One's
executives, who saw the purchase as an ...view middle of the document...
Several employees left
Taunts after Asset-One executives insisted that all new
investment funds must be approved by Asset One's
executive group. Previously, Taurus had given the
investment fund division enough freedom to launch new
products without approval of the entire executive e team.
Two years, later, Asset-One's CEO admitted that the
acquisition of Taurus Bank did not gain the opportunities
that they had originally hoped. Asset-One had more
business in this area, but many of the more talented
people in investment funds and online banking had left
the firm. Overall, the merged company had not kept pace
with other innovative financial institutions in the market.
1. Based on your understanding of mergers and
organizational culture, discuss the problems that
occurred in this case.
2. What strategies would you recommend to AssetOne's executives to avoid these corporate culture
clashes in future mergers and acquisitions?
Copyright © 2002 Steven L. McShane.
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