Review Questions Module 7

Some Common Questions about Merger Implementation

7.1 Companies that are undertaking a merger tend to have extensive prior experience from
previous mergers. T or F?
7.2 Successful implementation requires a well-developed tactical response capabilit. T or F
7.3 ! ma"or shortcoming of numerous implementation processes is a lack of adequate tactical
response to change. T or F?
7.4 #mplementation plans can be relativel inflexible as there is little likelihood of an response to
allow for change. T or F?
7.5 $ost large organisations maintain a core team of specialist merger and acquisition
implementers. T or F?
7.6 #n some cases sections of the planned implementation are in fact abandoned because actual
implementation is found to be impractical or too difficult. T or F?
7.7 $ost small mergers are put under the management of specialist consultants.
T or F?
Some Common Misconceptions about Merger Implementation
7.8 The work involved in an one merger is more or less the same as the work involved in an
other merger. T or F?
7.9 Cultural integration is relativel straightforward compared to technical integration. T or F?
7.1 %o large-scale merger has ever failed because of cultural incompatibilit.
T or F?
7.11 !ll companies are culturall and technicall compatible provided the implementation
process is planned carefull enough. T or F?
7.12 The cost of implementing the merger is alwas insignificant compared with the
values of the companies involved. T or F?
7.13 !cquiring companies alwas force their culture and philosoph on the acquired compan. T
or F?
7.14 $ost companies prepare ver detailed and structured implementation plans before initiating
the implementation process. T or F?
!"e Concept o# Implementation
7.15 #n man cases the implementation phase tends to be the part of the merger process where
things are most likel to go wrong. T or F?
7.16 &alue can be created or added onl if the implementation process develops the planned
snergies that should result from the merger or acquisition. T or F?
7.17 #f snergies are not achieved' the merger can add value onl b improving other
characteristics such as management efficienc. T or F?
7.18 #n a semi-smbiotic format' both companies effectivel retain their own identities. T or F?
7.19 ! power culture tpe organisation is likel to be compatible with an other
cultural tpe. T or F?
Multiple$C"oice Questions
Some Common Questions about Merger Implementation
7.2 $erger implementation can best be considered as a(
! dnamic process.
) semi-dnamic process.
C static process.
* disintegrative process.
7.21 The most common area where things go wrong during mergers is(
! the pre-negotiations phase.
) the due diligence stage.
C the post-merger re-evaluation phase.
* the implementation phase.
7.22 #n general terms the tpe of manager that is most likel to be good at
implementation is a(
! pro"ect manager.
) functional manager.
C strategic manager.
* financial manager.
Some Common $isconceptions about $erger #mplementation
7.23 $erger consultants in the +S are often(
! facilities management specialists.
) general management specialists.
C pro"ect management specialists.
* financial management specialists.
The Concept of #mplementation
7.24 !chieving technical integration and fit is an event within the(
! inception phase.
) strategic evaluation phase.
C evaluation and negotiation phase.
* implementation phase.
7.25 &alue creation in a merger depends primaril upon(
! careful planning.
) methodical cost control.
C good qualit management.
* the realisation of potential snergies.
7.26 $ost of the recent +, bank-former building societ mergers have been examples
of(
! total integration acquisitions.
) autonomous acquisitions.
C semi-smbiotic mergers.
* holding acquisitions.
7.27 The armed forces could be described as exhibiting a(
! power culture.
) role culture.
C task culture.
* person culture.
7.28 !n organisation with a role culture is likel to be merger-compatible with an
organisation with(
! a power or a role culture.
) a task culture.
C a person culture.
* a power' role' task or a person culture.
7.29 !n organisation with a power culture is likel to be merger-non-compatible
with an organisation with(
! a power culture.
) a role culture.
C a task culture.
* a person culture.