Company A is considering taking over company B - HSC - SSCE Business Studies - Question 8 - 2005 - Paper 1

Cultural compatibility is crucial in mergers and acquisitions. A significant reason for resistance to change arises from the potential for cultural incompatibility between the two companies. Differences in organizational culture can lead to misunderstandings, conflicts, and a lack of cohesion among employees, ultimately jeopardizing the success of the merger. Management should carefully assess the cultural fit during the planning phase to mitigate these challenges.