Integration of corporate cultures in mergers

1. Introduction
The case study Grape Expectations: A Case Study of the Southcorp-Rosemount merger, (Rice & Galvin, 2005) provides a basis to identify an issue of mergers, which will be analysed in this research report. The case study deals with the Australian wine industry and particularly examines the acquisition of Rosemount Southcorp. Therefore, it illustrates the goals of the merger and the problems resulting from the merger of the two companies.
The research report will deal with the potential problem that results from the concurrence of different corporate cultures in mergers, as “in preparing for mergers, acquisitions, joint ventures, and alliances, the emphasis is often on financial, legal, and technical matters [but] the cultural factor is often neglected” (Trompenaars & Prud’Homme, 2004). Furthermore, the report will explain the different strategies used to deal with the different cultures and will concentrate on the integration strategy and argue that it is the most appropriate strategy in most mergers.
2. Problem identification
2.1. Issue: Corporate culture in mergers
Researchers, investors, and the market are showing an increasing interest in corporate culture issues when it comes to mergers and acquisitions (Schraeder & Self, 2003). However, “while most firms recognize the critical importance of human and cultural issues in a merger, these issues are especially hard to analyze and quantify” (Camara & Renjen, 2004). Furthermore, the prevailing consensus in business literature is that problems regarding corporate culture are the most likely ones leading to unsuccessful mergers.