Marketing aspects of culture impact on business success of mergers and acquisitions

Abstract

Contemporary marketing environment globally is characterized by a very strong competitive struggle between businesses for each individual consumer on the market. The objectives of the company in such business environment is seen mainly through an increase in market share, revenue growth, penetration of new markets and market segments, mastering new technologies and know- how, improving competitiveness etc. Achievement of the company's goals and business success globally involves strengthening the business potential of the company through increasing financial, marketing, and operational capabilities and synergies. In this sense, companies often use methods of mergers and acquisitions which are methods of transformation of enterprises in terms of globalization, adaptation to the opportunities in the environment, strengthening and better positioning in order to achieve greater value for their stakeholders. Merger (fusion, integration), is a transaction in which occurs a single economic entity from the previous two or more entities. Acquisitions are situations when one company buys and acquires most, if not all, of the target company's ownership stakes in order to assume control of the target firm. In this way, it can take control and be in a position to decide on that company's future. Mergers and acquisitions are foundation of the company's growth, earning of better performance and achievement of business success. These processes involve overcoming a number of aggravating factors, where a national, local, and even organizational culture plays a big role. The paper aims to highlight the possible marketing implications and consequences of the impact of cultural factors on the business success of mergers and acquisitions.

Keywords

• culture
• mergers & acquisitions
• business success
• marketing