Case Study: Mergers Don’t Always Lead to Culture Clashes

Essay by dmjarrett88University, Bachelor'sA, September 2010

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Mergers Don't Always Lead To Culture Clashes

Dale A. Miller

University of Phoenix


September 24, 2010

Gary Vernon


A case study is a form of qualitative explanatory research that is used to look at individuals, a small group of participants, or a group as a whole. Research on case studies allows people to understand complex issues that can extend experience and add strength to previous research. Case studies articulate detailed analysis of a minimal number of events and their affairs. This paper will look at the case study entitled "Mergers Don't Always Lead To Culture Clashes". This paper will answer 4 questions in regards to the case study giving adequate feedback about the questions being asked.

In what ways were the cultures of Bank of America and MBNA incompatible?

The cultures of Bank of America and MBNA were incompatible because MBNA's culture was characterized by a free-wheeling, entrepreneurial spirit that was also quite secretive.

MBNA employees also were accustomed to the high life. Their corporate headquarters in Wilmington, Delaware, could be described as lavish, and employees throughout the company enjoyed high salaries and generous perks from the private golf course at its headquarters, to its fleet of corporate jets and private yachts. Bank of America, in contrast, grew by thrift. It was a low cost, no-nonsense operation.

Unlike MBNA, it believed that size and smarts were more important than speed. The cultures of both companies were so different that they became incompatible. However, to everyone's surprise the merger worked. This was done by Bank of America's respect for MBNA's culture.

Why do you think their cultures appeared to mesh rather than clash?

Both Bank of America and MBNA appeared to mesh because executives of both companies began by...