Vitro Corning

1728 WordsDec 10, 20117 Pages
Identify and discuss Corning 's strategic predisposition toward a joint venture with Vitro. Because of long histories of successful joint ventures and had been an innovative leader in foreign alliances for over 73 years, Corning 's strategy of establishing the joint venture relationship with Vitro seems to be a ideal combination and will lead to success. However, the joint venture became subject to a series of cultural and other conflicts that began to undermine this vision. According to company officials and external analysts, cultural differences were a principal cause of the alliance 's failure. Therefore, lack of fully understanding Mexico culture is the key predisposition of Corning 's strategy. What is culture? One of the…show more content…
It is widely recognized that cultural differences between the partners of a merger are one of the most common reasons for failure in mergers, this may happen during pre-merger negotiations or during post-merger integration. Thus, fully understanding the culture of a potential can help managers anticipate problems in negotiating mergers and prevent them from disrupting what can be an attractive and mutually beneficial market entry strategy. In this case, as an innovative leader in foreign alliances, Corning has formed approximately 50 ventures over the years. Only 9 had failed (dissolved), an impressive number considering one recent study found that over one-half of foreign and national alliances do not succeed. With this proud record, Corning was confident of being succeed in the joint venture of Vitro, however, the joint venture became subject to a series of cultural and other conflicts that began to undermine this vision. Culture is about shared assumption, beliefs, values and norms. Each organization has its own culture developed from its own particular experience, its own role and the way its owners or managers get things done (Hellard, 1995). Since culture may affect the MNC in many aspect of its international development, even like Corning, which has rich foreign alliance experience, cannot ignore the effect cause by culture clash. It is unalterable principle for Corning to fully understanding
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