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

Purpose – The purpose of this paper is to: summarize the major research that has been conducted regarding cross-cultural issues in China; show the current practices on cross-cultural management in Chinese organizations; and then identify future research needs on cross-cultural management in China.

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).

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

China and the United States has its own unique culture. What is culture? According to Kluckhohn and Kroeber ‘Culture consists in patterned ways of thinking, feeling, and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievements of human groups’ (Dowling, Festing, & Engle, 2013, p. 24). There are many interesting facts surrounding their culture. In this paper I will compare China’s culture to the culture of the United States to determine if China is a good match for a United States multinational firm who is looking to enter a foreign market. The aspects of culture difference I will be focusing on will include the following: language, religion, music, cooking, social norms and customs. The paper will end with a conclusion of my findings.

     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

2016 is said to be “Record Breaking Year” for Chinese Investors. According to Forbes News, five major acquisitions of U.S companies and stakes totaled up to 28.16 Billion dollars. Yet, this was only a quarter of China’s entire outward investments in 2016. Many foreign firms suppose that China’s oversea merging and investing in next decade will reach tremendous amount, but it will not occur as they expected depending on Emma Johanningsmeier’s current event reports on Wall Street Journal about “New Chinese Regulations and wary foreign governments hamper M&A investors” in august 2017.

This paper aims to explore the cultural barriers that GM encounters while doing business in China especially in terms of language and Asian mind difference. As a matter of fact, we cannot examine all the cultural barriers due to the scope of the paper. On the other hand, some differences emerging from different thinking behavior between US and China are exemplified in the second part of the paper. In the first part, the company information and the SWOT analysis of GM are given before going further with the Asian operations of the company.

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.

Mergers and Acquisitions (M&A) is a precise significant strategic interchange to sustain in competitiveness within the global market and it turns out to be one of a popular tools for corporate-level strategy. M&A is the amalgamation of two corporate entities to convert into solitary legitimate entity by combining resources and capabilities in order to attain a competitive advantage. Merger typically means reunion two particular companies together on equivalent basic whereas acquisition ordinarily means a greater sized corporation procuring a smaller sized corporation. The M&A activity has been continuously increased over the last 100 years and this phenomena is described by several M&A ‘waves’ (refer to Table 1).

This case study explores the failure of the merger of two renowned car companies, ‘Daimler Benz’ and ‘Chrysler’ - and how the integration of the two contrasting organisational cultures resulted in a cross-cultural mismatch. Due to the lack of cultural understanding from both sides, the notion of potential synergies as a result of the combination went unrealised. The study/research of cross-cultural management in organisations plays an important role in fathoming why this merger was unsuccessful.

A closer look at different types of corporate cultures and how they affect the global market place.

Collection of primary data includes methods such as observation and personal methods. Personal interview and discussion will be made with manager and other personnel in the organization for this purpose.