Final answer:
Mergers and acquisitions enable organizations to grow by combining forces, entering new markets, and responding to changing regulatory landscapes, often prompting significant internal restructuring and adjustment to new corporate cultures.
Step-by-step explanation:
Mergers and acquisitions are strategic approaches for organizations to achieve growth, expand internationally, and respond to industry deregulation. A corporate merger involves two private firms joining together to potentially make the company larger, become more efficient, acquire new product lines, eliminate rivals, or lose corporate identity. An acquisition is when one firm buys another, usually with the purchasing organization becoming the dominant partner. In both cases, the resultant company may undergo cultural adjustments, organizational restructuring, and staff reductions. Businesses may opt for mergers and acquisitions as a growth strategy to create more efficient entities, enter new markets, and harness various synergies to stimulate business expansion. As these strategies unfold, it's imperative to manage the complexities of integrating different organizational cultures, processes, and people.