Cross Culture Management in Merger and Acquisition in Emerging Economies

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ACKNOWLEDGEMENT

I would first like to express my gratitude for my research supervisor, colleagues, and peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

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ABSTRACT

In this continuous changing business environment, organisations have come to realise the importance of inclusion of diversified workforce. Therefore, diversity management has become a real challenge for global managers. Mergers and acquisitions have been on the rise for the last two decades. This dissertation highlights and addresses different problems related to cross-cultural management in cases of merger and acquisition within the organisations, working in three different continents - namely America, Europe and Asia. The first chapter provides an introduction to the topic. The second chapter presents the literature review. The methodology is covered in third chapter while findings are presented in fourth chapter. The fifth chapter concludes the dissertation, providing useful recommendations for future research.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Study1

Problem Statement3

Purpose of the Study4

Aims and Objectives4

Research Questions4

Rationale of the Study5

Significance of the Study6

CHAPTER 2: LITERATURE REVIEW7

Theoretical Framework of the Study7

Understanding the Concept8

Challenges in Mergers and Acquisitions in Emerging Economies9

Culture and its Characteristics10

Cultural Framework and Managerial Practices17

Cross-cultural Training20

CHAPTER 3: METHODOLOGY23

Qualitative Research Design23

Instrumentation24

Sampling25

Data Collection26

Data Analysis Procedures26

Ethical Concerns26

CHAPTER 4: FINDINGS AND ANALYSIS27

Arcelor-Mittal Merger from an Intercultural Perspective27

Cultural Adaptation and Diversity28

Structured vs. Unstructured28

Formal vs. Informal29

Discussion of Findings29

CHAPTER 5: CONCLUSION31

Summary31

Conclusion32

Limitations of the Study33

Implications of the Study33

Suggestions for Future Research33

REFERENCES35

APPENDIX - A40

APPENDIX - B42

CHAPTER 1: INTRODUCTION

Background of the Study

This study undertakes to discuss the most important aspect of the mergers of projects. It performs an in-depth research on the topic of mergers and acquisitions, which has proven to be one of the most applicable and debatable subjects of the significant management issues of the modern days. Managers who face with uncertain environments often consider strategic alliances to control costs, supplies, competitors or customers (Costa, 1987, 82). One such form of strategic alliance is merger and acquisition, a legal process where one company purchases or combines with another to become an entity that shares resources, technologies and profits. Some distinct advantages to mergers or acquisitions are the immediate access to the resources of both companies and a reduction in competition (Church, 1982, 55).

Offsetting these are the disadvantages of typically costly and risky implementation, a potential decline in productivity, and a lack of focus on the organization's primary business. Mergers in recent years, also, have been frequently used as a way for companies to increase their domestic or global presence. The current marketplace has been characterized by a number of highly publicized multibillion dollar international deals intended to expand the global reach of the participating organizations (Chen, 2004, 64).

Merger and acquisition selection decisions dominate by ...