Although Mergers and Acquisitions (M&As) have long been standard practice in
the advertising industry, there has been a dramatic increase in their occurrence
both in the United States and internationally in recent years. Korea, the seventh
largest advertising market, has not been excluded from this global M&A trend.
While much research has focused on M&As from the perspective of
organizations, not much emphasis has been given to the human side of M&As,
even though it is thought to be important for the success of the newly merged
unit.
This study focuses on the attitudes and perceptions of possible changes in work
culture and tasks by professional employees from four Korean advertising
agencies recently acquired by global groups. A total of 96 surveys were
completed by professional employees from three departments (Account
Management, Creative, Media). Comparisons are made between professionals
from different departments, different agencies, and the number of years at an
agency. In the results, it was found that many employees have been stressful
regarding their English skill and newly initiated some efforts to improve their
English proficiency. In addition, most of the participants answered that their loyalty to the
companies has been comparatively decreased after the M&A. Finally, among diverse departments,
Account managers have been taking advantage of the M&As most for recruiting new clients who
generally expect that they could get some extra benefits from Global networks.