Consider the complex social factors that make a merger a success according to the resource-based view.
Read the case below and answer the questions that follow.
It’s a widely reported fact—the biggest reason for merger failures is the incompatibility of the company cultures. What makes a business an attractive merger partner may be due to the company’s social complexities, based on decision-making practices, communication styles, and work history together. It is often assumed, however, that companies will simply change how they interact and work together after they merge, but will they still be successful? Since more than 80 percent of mergers fail, this question is an important one.
One company with several successful mergers is Vocus (now Cision Inc.), a public relations and marketing software and online services company. As the cloud computing market blossomed, Vocus knew its culture was unique, with offices designed as a small seaside town, emphasizing fun and open communication. The office board room was labeled “Bored Room.” Standing committees included “It’s All About You,” promoting a positive work environment, and “It’s Not About You,” focused on community service. Vocus sought to acquire companies with similar cultures and styles, rather than seeking to change or combine cultures. Vocus realized that the merger partners’ success was intertwined in their complex relationships, social histories, and decision styles. CEO Rick Rudman stated that it was necessary to be “proactive” in the merger process. For example, he made sure the office layout and communication styles were similar in merger partners.
As the cloud computing market continued to grow and consolidate, the Swedish company Cision AB merged with Vocus to form a new company in 2014 called Cision Inc. The new company relocated to Chicago and retained many of the cultural aspects that were important to Vocus. The Cision Inc. website states, “We design our offices with employees in mind. Our shared spaces help you connect, work together as a team and solve challenges.” Cision Inc. also continues to promote community service among employees and still produces the company publication, inVocus.
The success of Vocus/Cision was in “proactively” maintaining the social complexities of the company that made it successful.
Complete the multiple-choice question. Select the best answer.
The merger strategy of Vocus was based on what model?
a) The rule of one-eighth
b) Inimitability theory
c) IPO theory
d) High-performance practices
e) Resource-based view
Consider the complex social factors that make a merger a success according to the resource-based view.
Read the case below and answer the questions that follow.
It’s a widely reported fact—the biggest reason for merger failures is the incompatibility of the company cultures. What makes a business an attractive merger partner may be due to the company’s social complexities, based on decision-making practices, communication styles, and work history together. It is often assumed, however, that companies will simply change how they interact and work together after they merge, but will they still be successful? Since more than 80 percent of mergers fail, this question is an important one.
One company with several successful mergers is Vocus (now Cision Inc.), a public relations and marketing software and online services company. As the cloud computing market blossomed, Vocus knew its culture was unique, with offices designed as a small seaside town, emphasizing fun and open communication. The office board room was labeled “Bored Room.” Standing committees included “It’s All About You,” promoting a positive work environment, and “It’s Not About You,” focused on community service. Vocus sought to acquire companies with similar cultures and styles, rather than seeking to change or combine cultures. Vocus realized that the merger partners’ success was intertwined in their complex relationships, social histories, and decision styles. CEO Rick Rudman stated that it was necessary to be “proactive” in the merger process. For example, he made sure the office layout and communication styles were similar in merger partners.
As the cloud computing market continued to grow and consolidate, the Swedish company Cision AB merged with Vocus to form a new company in 2014 called Cision Inc. The new company relocated to Chicago and retained many of the cultural aspects that were important to Vocus. The Cision Inc. website states, “We design our offices with employees in mind. Our shared spaces help you connect, work together as a team and solve challenges.” Cision Inc. also continues to promote community service among employees and still produces the company publication, inVocus.
The success of Vocus/Cision was in “proactively” maintaining the social complexities of the company that made it successful.
Complete the multiple-choice question. Select the best answer.
The merger strategy of Vocus was based on what model?
a) The rule of one-eighth
b) Inimitability theory
c) IPO theory
d) High-performance practices
e) Resource-based view
