A recent surge of major corporate merger proposals in the food sector might spell danger for the companies involved and for society.
In their op-ed for The Guardian, Professor Tima Bansal and Ivey PhD candidate Mark DesJardine discussed how mega mergers distract companies from long-term goals and sustainable work cultures. They examined the damaging effect these mega mergers have on corporations through contrasting Coca-Cola’s fast-paced merger mindset versus PepsiCo’s "grow organically" approach.
“Creating synergies through mergers is seductive, but integrating a merger is difficult and distracts management,” said Bansal. “Managers are unable to spot bigger trends, and capitalize on these trends, as they focus on the day-to-day tasks demanded when integrating two companies.”
Bansal and DesJardine point out that sustainability may become an afterthought in the midst of these mega mergers.
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