A Research Study For Integration Of Different National Enterprise Culture

Our case study deals with Mass Merger. Since the 90s, together with the globalization of business, Mergers and Acquisitions have developed at an incredible pace. Thus, companies from all over the world can be lead to work together as one single corporation. Moreover, the world has become interdependent not only economically, but also culturally, that is to say one culture may influence another one or different cultures can be mixed. It is then obvious that intercultural issues have to be solved.

nature of the research approach calls for a means of data collection and analysis of findings

A. Cross-Cultural Differences Company X is considering expanding its business to China. However, prior to moving into a new and foreign market, Company X must understand the various cross cultural differences that are relevant to properly conducting business in China. By being more sensitive to and understanding the cross-cultural differences, Company X's transition into the new market should be less challenging and improve its chances of acceptance. Language, work ethic and material culture are three cultural differences that should, first, be understood prior to pursuing opportunities in China.

There are a number of methods of collecting data, some of them are – questionnaire, surveys, checklists, interviews, observations, focus group etc (Cordray, 1986; Einhorn and Hogarth, 1986).

The methodology selected provides the researcher the framework to present information in a logical manner. The methodology section answers two fundamental questions: How data was collected or created and, how the data was examined and determined (Research, n.d.)?

The researcher will look at different methods and decide which should use to gather the information required to answer the hypothesis questions. These methods may both include quantitative and qualitative approach such as interviews, questionnaires, conducting experiments or gathering data through statistic. After choosing appropriate methods, the researcher will investigate possible ethical implications, validity and reliability of the data collected.

2. What are the key problems related to cultural differences and which integration approach should the company follow to overcome these problems?

     Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum

Type or survey used: Commonly used methods for collecting quantitative data include telephone and face-to-face interviews, self-completion questionnaires (such as web-based, mail, email, or SMS) or combinations of these. Each has advantages and disadvantages in terms of the cost, time, response rate and the type of information that can be collected.

Topic 2: to compare your native culture with Chinese culture and to draw your conclusions;

One of the most challenging aspects of the merger is determine which culture is the most effective culture to move forward with. It may be from one of the companies, a new one entirely, or even a blend of the two. It may be a large amount of hard work to create an entirely new culture, and there is a low probability of success, too. The easiest and most straightforward solution is to pick one of the company’s cultures as a host culture, and merge the other with it.

Compared with the rapid development of foreign enterprises cultural studies, cultural studies for Chinese enterprises is very weak, (Ding, 2014)which is reflected in: First, the culture of Chinese enterprises still remain in the shallow stage, although there are some studies on corporate culture, but the most of them are introduced and discussed the significance of corporate culture and social culture, and business innovation dialectical relationship-based, there are not much theories based on empirical research of qualitative research and normative; second, China corporate culture seriously lags behind cultural development in the practice of Chinese enterprises, many enterprises in shaping corporate culture is mainly within the enterprise own to explore, although some experts and scholars involved, but because of the inherent logic of the development of corporate culture, and the positioning of the corporate culture, corporate culture was lacked from long-term change and other issues in-depth study, therefore, there are not much scientific theory to become the corporate culture practice guidance, and also it is difficult to generate driving force for long-term development of culture. Thus, the company in China should learn from foreign company’s cultural studies, cultural studies will help to have more strengthen for Chinese enterprises, promote the Chinese enterprises cultural development.

Needless to say that to do business in the current globalized economy, business partners need to communicate effectively in a given language. But communication requires much more than a solid knowledge of a language. Becoming communicatively competent in a foreign or second language implies more than being able to speak fluently and accurately. Being communicatively competent in a language requires having not only good linguistic knowledge but also knowledge of the culture that is beneath that language, the culture that this particular language reflects. When doing business in a global context, the ability to communicate cross- culturally is a must for the success of any enterprise. Electronic Communications Ltd. (ECL) had decided to start business in China and to form a relationship of common prosperity with Chinese people. The company knew that there was major progress to be made, but there were also risks and challenges. One of these was the management of cultural differences. An issue the management was whether it should adapt ECL's management practice to the Chinese culture or to establish ECL's global management policies in China. Successful cultural alignment is an important element for multinational organizations. Electronic Communications Ltd (ECL), like many other companies entering foreign markets, is faced with how to adequately incorporate their corporate culture with the Chinese national culture ECL, as a leading corporation throughout the

2.1 Benefits of Merger and Acquisition from the Chinese Perspective ..................9 2.2 National Culture..............................................................................................11 2.3 Chinese National Attitudes .............................................................................12 2.4 United States’ National Attitudes....................................................................15 2.5 A Comparison between Two National Attitudes .............................................18 2.6 The Role of Corporate Culture from the Chinese Perspective........................19 2.7 Problems Arising from Disintegrated cultures of two companies ..................23 2.8 Stages of Integration .......................................................................................26 2.9 Mode of Integration ........................................................................................30 2.10 Issues to be explored.....................................................................................33

Global companies like P&G, J&J, IBM, GE, Pfizer, Cisco, Tata & Sons, Mahindra & Mahindra, Haier, Lenovo, HSBC among others, have all adopted M&A strategy. Some authors say that organizations rely on three mechanisms to achieve growth: organic growth, alliances, and mergers and acquisitions (Rosinski, 2011). Other authors have proposed five ways of international expansion, in increasing order of cultural risk: (1) the greenfield start, (2) the international strategic alliance, (3) the joint venture with a foreign partner, (4) the foreign acquisition, and (5) the cross-national merger (Hofstede et al., 2010).