11 Given the benefits of rapid integration it is usually pre

11. Given the benefits of rapid integration, it is usually preferable to impose the acquirer\'s organizational structure on the target firm. True or False 12. It is best to staff positions in the new organization following a merger with employees of the acquiring firm to ensure their loyalty. True or False 13. Performing additional due diligence after closing is redundant and expensive since the acquirer had an opportunity to perform due diligence prior to closing. True or False 14. Encouraging an atmosphere of shared goals is a common way of integrating disparate corporate cultures. True or False 15. Integrating alliances relies more on teamwork than on top- down direction. True or False

Solution

Answer 11. TRUE. When a firm acquires another firm through merger or aquisition then it is called integration. But when the firm integrates in a rapid manner it is called rapid integration. Generally a firm may adopt a different or same organisational structure depending upon various factors. But in case of rapid integration it is advisable to folloe the former company\'s organisational structure as it will save time and efffort and may alsi saveany future project failures.

Answer 12. True. A staff\'s loyalty may depend on various factors like the work environment, attitude of the other staff etc. If the previous organisations staff is employed in the new organisation then the new employees of the latter organisation may see the old staff\'s loyalty and will prove to be o the same loyalty and corporate governance is mantained.

Answer 13. False. It always advised to perform some deligence before and after the closing as some frauds and other activities which are not in co ordinance with the firm may be revealed after the firms closing.

Answer 14.True. Each individual in an organisation has different private and personal goals and thus encouragement is necessary to direct the different goals of people into the same direction. It helps in achieving the organisations goal. Individuals should be encouraged in such a way that they align their personal goals with the organisational goals.