Problem
Organizational Culture Case Scenario - Mergers
As the global economy declined in recent years, two airplane manufacturers faced slow sales and revenue shortfalls. The first manufacturer was a European firm called etCom. JetCom produced executive jets and other non-commercial aircraft and was known for its high-quality airplanes, precision manufacturing, and reliable service. However, when it came to style and appearance, jetCom's planes were rather bland. The second manufacturer was an American firm named Sorenson Airplane Company. Sorenson had struggled with quality problems over the years but maintained a fairly strong following because of its long-term relationships with customers Sorenson's greatest strength, however, was that it produced very stylish planes and regularly won awards for its innovative designs and features.
The two companies had not been direct competitors because they served different geographic regions, but each company faced similar competition within its own market segment. Discussions between the presidents of the two companies about merging began tentatively but quickly escalated into earnest arrangements. Soon a deal was struck. On paper, the deal seemed like a match made in heaven. JetCom would bring the precision engineering and reliable manufacturing that Sorenson lacked, and Sorenson would add the panache that had eluded jetCom. Combining the existing customer bases also seemed to make sense because it would allow an expansion into new market segments in both geographic regions.
Merging operations of the two companies seemed pretty straightforward, but merging the two cultures was a different matter entirely. In each of the questions that follows, you'll learn a little bit more about the cultures of JetCom and Sorenson.
Task
Outline and explain how to decide on the strategy that should be used to merge the organizational cultures of the two companies. Include an outline of the different options for merging the two company cultures.