In a new era for boards, culture is key spencer stuart. No two cultures are alike, and culture is notoriously difficult to change. Liu peijin is the president of almond china, a subsidiary of the german company almond chemical. Culture clash in the boardroom hbr case study and commentary. Culture clash in mergers and acquisitions 3 one classic example of a cultural clash was the merger of price club and costco wholesale. Culture clash in the boardroom the case study culture clash in the boardroom is a very interesting case study. Look behind any disastrous merger and the same wordkeepspoppingup culture. The incident arose as the result of a clash of cultures and lack of knowledge on the part of students. While the damage done may not be completely reversible, it can be. In a bain survey of executives who have managed through mergers, that was the no.
Heres the unspoken truth accompanied by the predictable chain of events. They can also access all the presentations, playbooks, books, articles, checklists, software, assessments, webinars, research, tools, and templates on. A culture clash in international merger and acquisition. Former staff writer may 9, 2014 2 min read while regulatory approval has been known to halt a merger. While costco has gone on to be ultimately quite successful, the merger almost derailed the company and took far longer than it should have to come together.
Culture clash was widely blamed for the failure of the joint venture. In a culture clash, the companies fundamental ways of working are so different and so easily misinterpreted that people feel frustrated and anxious. Many place the blame on organizational culture, insisting the answer lies with widespread change. Decisionmaking in the visionary boardroom 5 companies today face uncertainty and disruption on all fronts. Time warner and aol merger culture clash, human resource, mergers bricks and clicks essay by tata76, university, masters, february 2005 download word file, 6 pages download word file, 6 pages 3. Culture clash in the boardroom case solution and analysis.
But unlike other areas of board governance composition, risk, succession and strategic planning or financial reporting, for example board culture is less clearly defined and understood. Culture clash in the boardroom by kelly zahn on prezi. Every organizational culture is different in style, function, rules, rewards, sanctions, planning, structure, and policies, from one another. Culture clash in the boardroom hbr case study the case. This harvard university case study explores the many issues that may arise while doing business across boarders. Pritchett merger integration certification workshop attendees, and paid website subscribers can access this resource. Leading change when cultures clash wharton executive. A case study abstract the purpose of this study is to explore culture clash when a japanese company is merged with a nonjapanese company. The case speaks of a joint venture between a german based company and. While business leaders generally recognize the importance of assessing and managing. The downside is that a complete transformation of culture wont happen overnight.
Time warner and aol merger culture clash, human resource. Culture clash, international merger and acquisition, intercultural communication introduction the purpose of this study is to explore culture clashes when a japanese company is merged with a nonjapanese company. Spencer stuart has identified a series of best practices based on our extensive board advisory and director recruitment work with many of europes leading listed companies. The meeting had barely begun when chen dong, the chairman of the joint venture and a chongqing no.
Even though the business is global, it follows the european standards. According to a 2004 japan external trade organization jetro report, since the late 1990s, tkh qxpehu ri ryhuvhdv ilupv 147. And a decades long flawed strategy titled integration. Culture clash in the process of a merger between a non.
The purpose of this paper is to present a case study of an acquisition of german fast by the israeli firm aladdin, and exemplifies the post. The case speaks of a joint venture between a german based company and china. Here, community bankers whove been through it offer their words of advice. As a result, an explicit focus on culturally responsive teaching is called for, as is training for newcomer school teachers regarding the specific. His fl ight from shanghai to chongqing had been delayed, and he had fretted about missing the training.
The culture clash heard round the world 20 years later, an oral history of daimlerchrysler daimlerchrysler cochairman juergen schrempp front and center with the. Acquisition management and organizational culture clashes the importance of cultural due diligence in mergers and acquisitions. Cultural diversity can lead to strong organization and aweinspiring brainstorming sessions. Culture clash in international merger and acquisition. We interviewed a japanese director who previously worked in a japanese company that was merged and acquired by a nonjapanese company. They had standards for everything and made them compulsory in their business environment. Focus on aligning your mission, communicating well, and intervening where needed to achieve post merger synergies and success.
The effects of culture clash on international mergers in. Culture clash in the boardroom free download as powerpoint presentation. For those charged with leading change, that number represents a daunting challenge. The bottom line is that culture is inextricably linked to performance, especially in an. In a new era for boards, culture is key a healthy board culture is increasingly recognized as an important element of board performance. The expectations and needs of customers, employees, and other stakeholders are causing companies to rethink the way they operate. Culture clash in the boardroom should a germanchinese joint venture follow the ethical rules of the parent company or the country of operation.
A key to effective integration 05 emotional connections catalyze and sustain integration 06 case in point 08 managing cultural issues throughout the deal life cycle 09 use culture to take integration to. Culture clash in the boardroom the players chongqing. Culture clash in the boardroom giovanni zago summary of the case the case speaks of a joint venture between a german based company and china and shows the various difficulties global companies may face while entering a new marketcountry. Just as likely as the positive affects of integrating people from diverse backgrounds are the inevitable cultural clashes that test the validity of the company ethics policies and the resolve of management to maintain a respectful workplace. Each country has its own regulations and traditions, being a global company involves following standards that. But reaching that promised land may not be easy, because of a recurring. Impact of organizational culture clashes culture shock. Boardroom best practice what makes an effective board. Culture clash in the boardroom by shona beswick on prezi.
Culture clash in the boardroom the case study culture clash in the boardroom discusses about a big european company, almond, which has a venture in china. When this context is missing, a culture clash is all but inevitable. Integrating cultures after a merger bain brief bain. In case of chongqing, the germans had built the production facilities according to their standard and culture. Wang vp sales ho financial director chen dong chairman of joint venture almond chemical liu president almond china schulman vice chairman of venture, almond chemical vp legal differences between china and germany.
The problem 0 it is customary for chinese companies to offer a commission or gift on sales. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. But when it comes to corporate culture, there doesnt have to be a clash. Culture clash in the boardroom commentary for hbr case study. How to avoid a culture clash postmerger independent banker. The primary driver for mergers and acquisitions also known as organizational marriage is revenue gain, however this approach rarely takes account of cultural differences which may inhibit successful adaption. Request pdf the effects of culture clash on international mergers in the high tech industry the present paper presents a case study of a merger between israeli and british hightech companies. Culture clash in the boardroom case study demontrez. Culture clash in the boardroom case solution one of the critical issue was that the germans were quite formal and disciplined. Safeguarding ma deal value managing culture clash 1 the culture performance connection 02 managing culture clash 03 case in point 04 culture.
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