Cultural Intelligence
Cultural Intelligence
2012
Work Group C
Organizational Behavior
11/2/2012
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Success in the today’s increasingly integrated economy requires the ability to adapt to different cultures. The specific set of skills needed to succeed in unfamiliar cultures make up an individual’s Cultural Intelligence (CQ). The aim of this paper is to illustrate the concept of CQ through the analysis and evaluation of the case of the merger between Kraft and Cadbury.
Contents CQ: Cultural Intelligence 1 Components of Cultural Intelligence 1 Cultural Intelligence in Mergers and Acquisitions 2 Kraft Takes Over Cadbury 2 Cadbury 2 Kraft Foods 2 Pitfalls of Poor Cultural Intelligence 3 Evaluation 3 Summary 4 Exhibit 1 5 Exhibit 2 6 Bibliography 7
CQ: Cultural Intelligence
CQ is an individual’s ability to understand cultural and organizational differences, and interact successfully with people in any environment.
The concept of CQ, developed by Earley & Ang in 2003 as a theory within business and organizational psychology, has steadily gained importance in the management world. With the growing globalization, corporations are expanding across national borders and encountering new customs and cultures but are often unable to adapt to the new cultural context.
The case of Kraft/Cadbury that will be analyzed throughout this report is an example of organizational (as opposed to individual) culture clash. Culture conflict is a major cause when mergers and acquisitions (M&A) fail.
CQ and Emotional Intelligence complement each other. While the former identifies the human traits and the unique characteristics of individuals, the latter isolates these characteristics and adapts to them.
Components of Cultural Intelligence
Earley & Mosakowski identify three components for CQ: the cognitive, physical and emotional/motivational. The sources of these three components are the mind, body and heart
2012
Work Group C
Organizational Behavior
11/2/2012
-------------------------------------------------
Success in the today’s increasingly integrated economy requires the ability to adapt to different cultures. The specific set of skills needed to succeed in unfamiliar cultures make up an individual’s Cultural Intelligence (CQ). The aim of this paper is to illustrate the concept of CQ through the analysis and evaluation of the case of the merger between Kraft and Cadbury.
Contents CQ: Cultural Intelligence 1 Components of Cultural Intelligence 1 Cultural Intelligence in Mergers and Acquisitions 2 Kraft Takes Over Cadbury 2 Cadbury 2 Kraft Foods 2 Pitfalls of Poor Cultural Intelligence 3 Evaluation 3 Summary 4 Exhibit 1 5 Exhibit 2 6 Bibliography 7
CQ: Cultural Intelligence
CQ is an individual’s ability to understand cultural and organizational differences, and interact successfully with people in any environment.
The concept of CQ, developed by Earley & Ang in 2003 as a theory within business and organizational psychology, has steadily gained importance in the management world. With the growing globalization, corporations are expanding across national borders and encountering new customs and cultures but are often unable to adapt to the new cultural context.
The case of Kraft/Cadbury that will be analyzed throughout this report is an example of organizational (as opposed to individual) culture clash. Culture conflict is a major cause when mergers and acquisitions (M&A) fail.
CQ and Emotional Intelligence complement each other. While the former identifies the human traits and the unique characteristics of individuals, the latter isolates these characteristics and adapts to them.
Components of Cultural Intelligence
Earley & Mosakowski identify three components for CQ: the cognitive, physical and emotional/motivational. The sources of these three components are the mind, body and heart
Bibliography: Crush, P. (2010, June 07). Is Cadbury heading for a meltdown following the Kraft takeover? Retrieved 2012, from HR Magazine: http://www.hrmagazine.co.uk/hro/features/1017947/is-cadbury-heading-meltdown-following-kraft-takeover DiMaggio, M. (2009, September 15). Top 10 Best (and Worst) Mergers of All Time. Retrieved 2012, from CNBC: http://www.cnbc.com/id/34467713/Top_10_Best_and_Worst_Mergers_of_All_Time?slide=3 Early, P., & Mosakowski, E. (2004). Cultural Intelligence. Harvard Business Review. Lucas, L. (2011, January 14). Cadbury people still chewing on Kraft culture. Retrieved 2012, from Financial Times: http://www.ft.com/intl/cms/s/0/71a34530-2019-11e0-a6fb-00144feab49a.html#axzz2AE38mkd8 Rappeport, A., & Lucas, L. (2011, May 23). Mergers and acquisitions: A bitter taste. Retrieved 2012, from Financial Times: http://www.ft.com/intl/cms/s/0/03559624-8571-11e0-ae32-00144feabdc0.html#axzz2AcXR8y2q Rein, S. (2009, June 16). Why Most M&A Deals End Up Badly. Retrieved 2012, from Forbes: http://www.forbes.com/2009/06/16/mergers-acquisitions-advice-leadership-ceonetwork-recession.html Swanekamp, K. (2010, January 19). Kraft Swallows Cadbury. Retrieved 2012, from Forbes: http://www.forbes.com/2010/01/19/kraft-cadbury-takeover-markets-equities-candy.html Thompson, J. (2010, February 3). Kraft finally acquires Cadbury after vote in favour of £11.4bn deal. Retrieved 2012, from The Independent: http://www.independent.co.uk/news/business/news/kraft-finally-acquires-cadbury-after-vote-in-favour-of-163114bn-deal-1887595.html?origin=internalSearch -------------------------------------------- [ 1 ]. The table in Exhibit 2 compares the cultures of the two organizations based on what was conferred in the media at the time of acquisition.