Spring, an American firm, recently acquired another company, Tazel Inc., in Indonesia. The high-level managers at Tazel quit because they could not cope with the domineering and straightforward approach of their American counterparts. This illustrates how acquisitions may fail because
A. managers overestimate their ability to create value from an acquisition.
B. integration of operations between the two firms takes longer than forecasted.
C. there is a clash between the cultures of the acquired and the acquiring firm.
D. an acquiring firm overpays for the assets of an acquired firm.
E. inadequate pre-acquisition screening has been done.
Answer: C. there is a clash between the cultures of the acquired and acuiring firm