Based on the experiences of Chrysler and Diamler-Benz AG, what is the importance of culture in the change process?…
The article ‘Tata Motors finds success in Jaguar Land Rover’ by Vikas Bajaj seeks to explore the acquisition of English car brands Jaguar and Land Rover by Indian based auto company Tata Motors. The article discusses how the multinational enterprise has dealt with and reacted to the economic context and cultural differences related to the acquisition. To better comprehend how this acquisition has affected key stakeholders and the implications on top management, we must look to relevant cross-cultural management theories.…
Hofstede’s dimensions of culture are the most popular model to explain the various effects across cultures. The data gathered by Hofsted from approximately 70 countries analyzed survey responses from participants. He developed five cultural dimensions that vary across multiple countries; Individualism- Collectivism, Masculinity- Feminity, Power Distance, Long Term Orientation, and Uncertainty Avoidance. Each characteristic carries a certain impact on cultural business practice.…
References: 1. Impact of Culture On Mergers and Acquisitions: A Theoretical Framework. International Review of Business Research Papers. Mohibullah., Vol. 5 No. 1 January 2009 Pp. 255- 264. 2. Why Do Mergers Fail? What Can Be Done to Improve their Chances of Succes? R. Salame. Key Strategy Papers. January 2006.…
Equally, Japan has developed its own unique business culture which has been practiced for a long time. This essay will analyze the characteristic Japanese business culture which forms the foundation for their business. To begin with, in Japanese corporations, there is a sense of unity which is fostered beyond the boundaries between employers and employees (Odaka, 1986). This is called "Groupism," which is based on joint responsibility and respect for harmony on which most Japanese companies emphasize. Once employees joined a company, they are required to no longer think of themselves simply as an individual instead they identify with the group.…
Hofstede’s Dimension of culture determines how a society is in managerial sense. Each dimension represents how close an individual might be to others, or whether or not the country is passive or aggressive. After reading the information and understanding, the study will then discuss Hofstede’s determination of Japan.…
1. What are the cultural differences that may impede success after the merger and acquisition?…
This research is an excellent example to show how Hofstadter’s four cultural dimension work when Multinational Company decides to do business overseas. Using the Hofstede’s four cultural dimensions as a point of reference, some of the main cultural differences between the United States and France are strong French uncertainty avoidance, high individualism, centralized power structures and lower masculinity scores…
Following Tata's purchase of Jaguar and Land Rover earlier this week Declan Mulkeen, Marketing Director at Communicaid, Europe's leading Culture and Communication Skills consultancy responds to the announcement and discusses the cultural and communication challenges which a cross-border acquisition of this type may produce and the steps that both Tata and Jaguar/Land Rover need to take in order to make this a successful Anglo-Indian story. The current trend towards international mergers, acquisitions and joint ventures is resulting in organisations not only having to deal with the merger of different corporate cultures, but also of two or more national cultures. While Tata will be more familiar with British business culture following the recent acquisition of steel producer Corus, it will need to work hard to understand Jaguar and Land Rover's unique motoring heritage and business culture.Jaguar and Land Rover, previously owned by US car manufacturer Ford for the last twenty years, will be very familiar with North American management and business practices so the change to Indian ownership will be an interesting challenge for management and production staff alike.With estimates suggesting that as many as 80% of international mergers and acquisitions fail, Tata will need to take extreme care and consideration to ensure that they fully understand the national and corporate cultures of the companies they have bought into. Key to their success will be the ability to maintain clear and open channels of communication with all Jaguar and Land Rover employees. Information is the lifeblood of any organisation and the way in which it is communicated can make the difference between a productive and committed workforce and one that is sceptical and unreceptive. Tata, Jaguar and Land Rover senior management teams must communicate accurate information transparently,…
5.9. Measures which they could take to effectively embed the proper culture to its employees…
Second, theoretical studies in national cultures are not sufficient to intercultural business context because international business embraced various cultures across borders. However, such scholars as…
Las empresas emplean, venden a , compran de, son reguladas por y pertenecen a personas. Puesto que personas de diversas culturas participan en los negocios internacionales, cada función de negocios (el manejo de la fuerza laboral, el marketing, el trato con las autoridades reguladoras y el seguro de los fondos) está sujeta a problemas culturales potenciales. Una empresa internacional debe ser sensible a estas diferencias culturales para pronosticar y controlar sus relaciones y operaciones. Además, debe darse cuenta de que su forma acostumbrada de hacer negocios puede no ser la única o la mejor. Al hacer negocios en el extranjero, una empresa debe determinar, en primer lugar, cuales practicas de negocios del país extranjero difieren de las que acostumbra a realizar. Con esto en mente, la gerencia debe decidir que asuntos son necesarios para operar de manera eficiente en el país extranjero…
Cross-border mergers have become the inevitable trend of economic globalization, which is strategic tool for the enterprises to obtain the core competitiveness. The mergers can not only enhance the internal competitiveness of the enterprises, but also promote the enterprises to develop international markets and some emerging areas. However, when multinational companies enter the international market, Cultural difference is becoming more significant, and even will lead to failure of cooperation. These issues have become a hot topic and widely discuss. For these contradictions and confusion existing in multinational corporations’ management, some business operators believe that this is a business management issues; while they try to solve this problem, but the effect is limited, or duplication of efforts. In fact, it is cultural difference in the multinational companies’ management, and cultural differences are the direct cause.…
References: 1. Ajiferuke, M., & boddeweyn, J.J. (1970). “Culture” and other explanatory variables in comparative management studies. Academy of Management journal, 13: 153-163.…
“With increased globalization, economies have become more interdependent, making internationalization of operations critical for a company’s success in today’s competitive environment”. This essay will examine problems that Air New Zealand and Jet Star deal with whilst working internationally in a multi-cultural environment. Hofstede’s five cultural dimensions will help illustrate on an organizational level the importance for survival of these two companies when faced with their challenges in foreign markets.…