COMPANY OPERATIONS REDIRECTED TOWARDS WORLD LEADERSHIP AFTER ACQUISITION

  • Ricardo Vinicius Dias Jordão Universidade Federal de Minas Gerais
  • Antonio Artur de Souza Universidade Federal de Minas Gerais
Keywords: Organizational Culture, Mergers and Acquisitions, Management Control Systems.

Abstract

The great number of merger and acquisitions (M&A) that they are processed worldwide is a subject of organizational economy that has unveiled the attention of researchers. There is a gap that needs to be filled in relation to the divergence between the expected benefits and those effectively accomplished with M&A. The acquisitions, particularly, despite being more significant than the mergers, have not been successful, according to principle of value generation. The post-acquisition management control system (MCS) has been pointed out in the literature as one of the factors that collaborate for the success of these transactions, for facilitating that the objectives established before the purchase are reached. The objective of the research described in this paper was to analyze the effect of the corporate culture in the changes that occurred in the MCS of Extrativa Metalquímica S.A. after its acquisition  by the Grupo FASA Participações. The paper presents and argues the main MCS approaches and the influence of both the acquisitions and the culture in the MCS. The results expand the knowledge on the subject, contributing to reduce the research gap in Brazil. It was possible to conclude that (1) changes in the acquired company MCS derived from the new culture aimed at financial results, which was introduced by the acquiring company with the intent of turning the acquired company in the world leader in its industry in 10 years; and (2) modifications in the production, financial and quality control, aiming at allowing the implementation of these new culture focused on financial results.

Downloads

Download data is not yet available.

Author Biographies

Ricardo Vinicius Dias Jordão, Universidade Federal de Minas Gerais

Professor de Mestrado na Fundação Pedro Leopoldo, da Fundação Dom Cabral e do IBMEC

Mestrado em Contabilidade e Controladoria na Universidade Federal de Minas Gerais, PHD em Economics and Management Sciences pelo Center of Advanced Studies in Management and Economics (UE), em associação com o Swiss Management Center, SwitzerlandP

Antonio Artur de Souza, Universidade Federal de Minas Gerais

Professor Adjunto IV do  Departamento de Ciências Administrativas da Universidade Federal de Minas Gerais – Belo Horizonte-MG, Brasil

Mestre em Engenharia de Produção pela Universidade Federal de Santa Catarina Ph.D. em Management Science pela University of Lancaster/UK

How to Cite
Jordão, R., & Souza, A. (1). COMPANY OPERATIONS REDIRECTED TOWARDS WORLD LEADERSHIP AFTER ACQUISITION. REGE Revista De Gestão, 19(1). https://doi.org/10.5700/issn.2177-8736.rege.2012.49848
Section
Estratégia Empresarial