Intercultural Business Case Study Introduction The internationalization of the business markets has given rise to fierce competition raising the pressure for the players in the market both big and small. The pressures make it necessary for the automobile players to adapt business at the multinational level. This gives rise to more cross-border acquisitions and mergers. Such demanding and continuous challenging market supported the slogan ‘what we cannot accomplish alone, we will then accomplish it together’, the German luxury car maker Daimler-Benz signed a merger with the North American passenger car giant Chrysler in the late 90s. Inspite of the wide differences they experience, they merged to gain competitive advantage in the tough global market and to reach the top position in the global car market which were in the hands of their rivals GM and Ford and also to strengthen their position to keep themselves well-grounded even during the low economic times. With the merger the DaimlerChrysler which they called it as ‘merger of equals’ were able to make to the 3rd position in the world car industry, the merger was later dubbed as ‘marriage made in Hell’ when the companies fell apart and lost the market. Though there was a promising look from the merger, the wide differences in organizational behaviour, culture, style of working, regulations and lifestyle increases the risk for such cross-border culture mergers. This is an attempt to support the previous works to show how these differences can dissolve the mergers and ground the company. Problem Analysis Experts and analysts had mixed opinion about the merger in 1998. Though the companies sounded positive with their synergies at the time of merge, the cross cultural working and at... ... middle of paper ... ...hrysler dawns’ [Online] Available at: http://money.cnn.com/1998/05/07/deals/benz/ (Accessed on 15 January, 2014) 3. Financial Times (2007), ‘Timeline: From global merger to sale‘ [Online] Available at: http://www.ft.com/cms/s/0/6109186c-0209-11dc-ac32-000b5df10621.html#axzz2rEwE4j6C (Accessed on 16 January, 2014) 4. Katpul (2012), ‘Daimler Chrysler merger’ [Online] Available at: http://www.slideshare.net/katpul2/daimler-chrysler-merger (Accessed on 16 January, 2014) 5. Maria Finarelli ‘What Could We Accomplish Together That We Cannot Do Alone?’, Chapter 1 Available at: https://www.ache.org/pubs/Zuckerman%20Sample.pdf (Accessed on 18 January, 2014) 6. Paul A. Eisenstein (2002), ‘Case Study: Merging IT at DaimlerChrysler’ [Online] Available at: http://www.cioinsight.com/c/a/Past-News/Case-Study-Merging-IT-at-DaimlerChrysler/ (Accessed on 17 January, 2014)
In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
I am interest in the study of this topic because I am curious about the financial effects of such a merger.
This article is concluding that the choice of leadership succession is not important in how the merged company fares thereafter, even in such an extreme case as a mergers of equals. Nonetheless, the high failure rate of mergers remains, and so research should shift attention to other salient factors such as cultural and operational integration (Cheng, 2012). This article is supporting iGate Patni because, instead focusing about the choice of leadership succession, IGate focused on the factors such as cultural and operational integration which is the reason for their successes in merging with Patni.
Consultation and analysis of previous similar cases is important in handling a large merge of the magnitude presented here. From the way the new management of American Airline is handling the case, it is evident that that they must have consulted extensively and studied previous mergers. This is a major case study for mergers.
In our days mergers and acquisitions are a predominant feature of the international business system as companies attempt to exploit new market opportunities and to strengthen their market positions. Each year sets a new record for the total value of mergers and acquisitions and nearly every day new announcements are made in the business newspapers.
Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.
Berry, A. W. (2010, May 31). Advantages and disadvantages of acquisitions and mergers. Retrieved from http://www.helium.com/items/1561489-mergers-and-acquisitions
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
In 1999, RENAULT, a French midsize automaker company decided to create an alliance with Japan's NISSAN Motors. This operation has transformed the company into a global player, inside the very competitive market of worldwide vehicular distribution. By taking over 36.8% of Nissan's capital, Renault decided to send Carlos Ghosn, as new manager from Nissan, in order for him to install a "Nissan Revival Plan" (NRP). Actually, this plan has been made in order for both corporations to restore profitability, and acquire and increase market shares in Japan. My paper presents and describes the different aspects of this successful merging operation between two cultural opposites way of managing and running business. In other words, it shows the differences and changes that have been brought by Renault Corporation. First, it presents the major leadership role played by Carlos Ghosn in successfully restoring Nissan's health. Secondly, it introduces the Nissan's Japanese way of running an organization, and the main changes made by Renault organization, a western European firm: showing the huge different gap between the two ways of managing businesses.
During the 1990s, each company experienced specific difficulties to their market share. Both companies struggled to reestablish themselves in the global consumer electronics world. As the year 2000 came around, new CEOs at both companies came up with even more complicated initiatives and reorganizations.
The soft factors can make or break a successful change process, since new structures and strategies are difficult to build upon inappropriate cultures and values. These problems often come up in the dissatisfying results of spectacular mega-mergers. The lack of success and synergies in such mergers is often based in a clash of completely different cultures, values, and styles, which make it difficult to establish effective common systems and structuresBased on the case study, extensive research and annual reports of AT&T the writer has mapped AT&T in the different domains. AT&T should strive to attain a perfect circle as close to the centre as possible, which indicates total synergy, order and equilibrium. Where the circle is skewed drastic change is needed as it moves closer to the outer ring of chaos:
McDougall, Gilles. (1995). The Economic Impact of Mergers and Acquisitions on Corporations. Retrieved on July 9th, 2006 from http://strategis.ic.gc.ca/epic/internet/ineas-aes.nsf/vwapj/wp04e.pdf/$FILE/wp04e.pdf
Business Mergers can be either effective or an aggregate catastrophe. Because a merger cost a ton of cash doesn't imply that it will be an effective arrangement. A standout amongst the best mergers was the merger of Exxon Company and Mobil Partnership, the merger between two of oil organizations. This merger is considered today one a definitive business mergers ever as per numerous business sites.
Before the merger, the existing culture of Turner & Townsend and Thinc were somewhat similar. Both were predominantly role cultures, formalized rules and regulation and a hierarchical power structure. The only perceptible difference between the two firms was that of reputation. Turner & Townsend had a reputation of cost management service provider and more aggressive within the marketplace while Thinc was more considered to be project management service provider. 80% of senior managers of Turner & Townsend have been promoted within the business who are having cost management
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...