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Another typical case is the HP-Compaq merger which was not as successful as expected by industry analysts. After merger, the top-level management thought that they can become market leaders in higher segment (high-end server market) as well as lower segment (PCs, Printers) by pushing down IBM, Sun Microsystems and Dell from their positions.
They could not do it as expected, and their strategic plan failed totally, they were losing revenues in many parts of their business units. The share price of the company drastically lowered after the merger took place. The reason is that, IBM, Sun Microsystems, Dell and Canon provided a tough strategic entry barrier to HP-Compaq plans by announcing their strategic initiatives to enter into different business segments of HP-Compaq. Apart from that there were many inner conflicts in their technology units and they were unable to convince their employees.

If relationship after marriage is to last and happiness is to prevail forever, the members in the family should learn to cooperate and help each other, even at tougher moments. Families with good values and happiness imbibed in their system always remain a reason of envy to others. Similarly, companies with good value system and the ability to understand and react towards cultural differences can really see a successful Merger or Acquisition implementation taking place, there by formation of a bigger and healthy family (organization).

Concluded.

* Contributed by -
Ravi Kumar,
Currently pursuing MBA from BIM, Trichy,
Article published in KRIYA, July'06 Issue, the monthly magazine of the institute.

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