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Essay about Oil and Wasser

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Case Analysis: Oil and Wasser There are two major barriers that are leading to an inevitable failure in the Royal Biscuit and Edeling merger. The first, and most important, is the lack of cultural competency between Brighton and Wallach, the two merger officiators. Both parties are displaying characteristics of ethnocentrism and misperception. Second, is the lack of corporate competency resulting from dissimilar corporate cultures, histories and business strategies. If the merger of the two companies is to be successful then corporate synergy must be realized; otherwise the union is doomed to failure. In the case of the merger between Royal Biscuit and Edeling, there is clearly a lack of cultural competency between…show more content…
4). Wallach, on the other hand, is aware of the fact that there are fundamental cultural and corporate differences and that need to be addressed, and not ignored, before the decision process can precede any further. He suggests that the two of them “draw on some additional perspectives, beyond [their] own, to produce the plan” (Reimus, B., 2004, p. 2). The second major barrier to a successful merger between the two companies is a lack of corporate cohesion. The corporate cultures of both companies are very distinct. Royal biscuit is a new corporation that grew rapidly under the entrepreneurial expertise of one man, while Edeling is a mature family-owned business. The companies differ historically, politically and foundationally. Members of both corporations are expressing resistance towards the merger. Royal biscuit employees feel threatened by the merger and are engaging in anti-German antics; some workers don’t want to be loose their job to an Edeling worker or, in other words, to “some sausage-eater” (Reimus, B., 2004, p. 3). Edeling employees, instead, feel that Royal Biscuit employees don’t respect their corporate history. Therefore, it is imperative that Brighton and Wallach come to a cultural compromise in order to collaborate on a leadership plan and create competencies between employees within both of the
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