Why Do Mergers and Acquisitions Sometimes Fail to Produce Anticipated

question 31

Multiple Choice

Why do mergers and acquisitions sometimes fail to produce anticipated results?

• A) They do not produce the hoped for outcomes and changes to existing operations may not eventuate.
• B) Cost savings may prove smaller than expected.
• C) Gains in competitive capabilities may take substantially longer or never materialize.
• D) Efforts to mesh corporate cultures can stall due to formidable resistance from organization members and key employees can become disenchanted and leave.
• E) All of these.

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Definitions:

Exploration

The process of investigating new ideas, concepts, or opportunities with the aim of discovering novel solutions or advancements.

Incremental Improvement

A continuous effort to enhance products, services, or processes through small, gradual changes rather than through large, significant innovations.

Failed Change Efforts

Attempts at organizational or societal change that do not achieve their intended outcomes.

Cynical

An attitude of skepticism or distrust towards people's motives or integrity, often believing that human actions are motivated purely by self-interest.