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ACCA Applied Knowledge · Business and Technology · Organisational culture

Marlow Co has just merged with a rival. Staff from each company continue to follow their former working practices and refer to 'us' and 'them'. Which factor most directly explains the resulting culture problem?

The cause is the combination of two established, differing cultures without integration. Each group keeps its own values and practices, creating subcultures and an 'us and them' attitude. Economic or accounting changes do not explain this behavioural division after a merger.

  1. ATwo established, differing cultures have been combined without integrationCorrect
  2. BAn increase in the national inflation rate
  3. CA change in the accounting policy for inventory
  4. DA fall in the price of raw materials

Explanation

Mergers bring together groups with different established values and habits. Without deliberate integration, subcultures persist, producing the 'us and them' attitude. Inflation, inventory policy and raw material prices do not explain this behaviour.

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