Organizational Change : An Important Part Of An Organization

1900 Words8 Pages
Introduction:

Culture is an important part of an organization. In todays world many companies are expanding their business by opening new plants and franchises in different countries in order to maximize their profit margins and reduce their labor costs. As mentioned by (Lee & Lin, 2014) that operating in different locations help companies to gain technological and market information and they can respond to their customers quickly.
Opening business in a new country means facing a new culture, which may requires the company to do major changes in their organizational culture so they can relate to the culture of host country. As stated by (Gill, 2012) organizational change is important in organizational culture and it is a necessity in
…show more content…
This paper will review two journal articles focusing on the clash of two different cultures, the effect of culture on the Mergers of DaimlerChrysler/Mitsubishi and Nissan /Renault mergers and discuss the factors impacting the failure of DaimlerChrysler/Mitsubishi and the success of Renault /Nissan.

Background:
A mechanism to gain access to new resources is known as acquisition (Sarala, 2010). Culture is comparatively a new dimension in acquisitions and mergers. According to (Sarala, 2010) culture dimension play an important role and highlights the cultural factors such as cultural differences and other cultural characteristics affect the outcomes of the acquisition. Article (The role of leadership in successful international mergers and acquisitions. Gill, 2012) will review the cultural differences and how two different Leadership styles have a totally opposite effect on the two mergers in a same culture. Second review article selected is (Multicultural Shared Leadership in culturally diverse Team. Ramthun & Matkin, 2012) which will address the shared leadership and diversity among team members with focusing on national and organizational culture, this is related to the case of the mergers discussed in the first article and may be the possible reason for the failure of DaimlerChrysler/Mitsubishi merger.

Nissan & Mitsubishi:
Let’s focus on the two main mergers selected for this paper and their different outcomes. In 1999 Nissan was ranked at number 2 in the
Get Access