Organization Culture MAY HELP Organizations Merging Business Essay

The research is designed to analyze that from what extent the business culture can help organizations merging, and how to control or develop the business culture. The aims are as follows

To identify the organization culture could help organizations merging.

To illustrate that to what extent the business culture can help organizations merging with data examination.

To review the strategy of manage or develop the organization culture based on the practise of two well-known Western and American companies.

To determine the future perspective of the business culture in the introduction of the organization merging and management.

Based on the above mentioned aim and objectives of the research, the author mainly researches the following questions.

Research Questions

How is the business culture development status in Western and American companies?

What is the contribution and position of business culture to the introduction of organizations?

What is the impact of organization culture on the organizations merging?

Whether the organization culture can help organizations merging?

Why the business culture can help organizations merging?

What extent the business culture can help organizations merging?

How to control or develop the organization culture for Western european and American companies?

1. 3 Rationale of the Research

The complex posed by the ethnic characteristics of different varieties, is a stable long-term cultural beliefs and historical practices and unique management style. It permeates daily life and development and procedure activities, rooted in the mindset of the employees. The business enterprise combination is the breaking of the original corporate and business culture model, in absorbing the social advantages of both sides based on the formation of a new corporate culture. This establishes the two ethnicities (especially backward culture) to be significantly infected, along with conventional and cooperation of the whole integration process, backward and advanced contest contradictions in the integration process, issues. Therefore, the business enterprise combination cultural issue is inevitable; it is a concentrated expression of the corporate conflict.

1. 3. 1 The reason why of conflict between your corporate cultures in the process of merger

The corporate and business culture is a long-established commercial culture principles and historical customs and unique business soul and style, including the guiding ideology specific to a enterprise development strategy, business idea, ideals, ethics, and traditions. Its constituent elements can be summarized in five items: the business environment is the most important factor shaping corporate culture; corporate beliefs building the core of the organization culture; commercial heroes will be the worth of the "personification, to follow the example of the specific style of staff; service and ceremony it is a plan of the day-to-day regime, a energetic culture corporate beliefs can be a audio and development; the ethnical network communication companies grassroots organizations transferring awareness of principles and heroes channels. corporate culture guide corporate users consciously make job options consistent with corporate prices, specific worth will encourage employees to meet up with the business needs of behavior exhibited in a specific environment; affected by the same worth and code of conduct of the employees in various time will inevitably seem mutually coherent.

The corporate and business culture has the multifaceted two times feature. First, the uniqueness and variety coexist. The organization culture can be an objective simple fact, only the professionals and downsides of high and low details, no existence or absence of the other. The enterprise has a unique corporate culture. Because of industry, industry, ownership, regional background and culture differs, different enterprises even greater differences in commercial culture, which is the uniqueness of the organization culture. As the organization culture is mainly an ideological thing. Thus, they have strong historical continuity, changes flaccid. Various corporate culture can't be as easily change and fusion equipment updates, asset restructuring, corporate restructuring, which takes its reorganization following the corporate culture of variety. They have a tendency to continue to exist within a very long time and are likely involved. Discord and friction turn into a corporate and business restructuring of the social barriers. Secondly, Negative and positive coexist. After the reorganization of the diversity of commercial culture have negative and positive two opposing characteristics. The positive aspects of performance in any way levels of the corporate culture even integration of complementary advantages, and in the training and selection process for both sides concur that the ideals and norms. Such as for example blend, both exclusive their own arrogance subconscious, and absorb the essence of one another in shared understanding, and therefore create a more powerful corporate culture based on their existing commercial culture substance. The negative aspects of performance for the restructured corporate culture conflict produce unfavorable factors hinder enterprise development. Considerable push union, as a result of strength of the two sides evenly matched up, it is easy to admit beat the problem, both edges consider themselves excellent and refused to accept the new culture and communication, and the parties cannot understand one another, and the construction and execution of the impact of restructuring the organization culture, which a robust combination is not strong, poor and weak following the joint more poor condition. Third, Progressive and reverse sexual coexist. Commercial restructuring and cultural integration need to undergo a few of the run-in period, and impossible for a pier, which has a progressive. And performance is a special kind of reverse that the reorganization of companies material culture, system culture first run-in, alternatively than religious and ethnical materialized result of the procedure of integration between the two sides. Standard corporate culture always follow the religious and ethnical - institutional culture - material culture - the new heart of the culture - a fresh institutional culture - the law of the round movement of the materials culture constantly development, restructuring corporations culture level fusion, but instead to the contrary. After the commercial restructuring is always to material cooperation, and then develop the system, which deep-seated impact of the nature of business culture, with the change sexual. In the event that you ignore the above top features of the organization culture, and asked to create some type of racial superiority, miscommunication, and self-cantered execution and management, it will inevitably lead to a deep-seated ethnical conflict in mergers and acquisitions subject.

1. 3. 2 The sort of conflict between your corporate culture along the way of merger and reorganization

1. 4 Research Instrument and Research Process

In this paper, research methods include literature review and interviews. On this study, the literature is from related documents, catalogs, mainly from the overview of different countries' research and research system research. This paper is mainly used for interview of managers and personnel in European and American famous companies and then gathers relevant data.

The society for the analysis would be the managers and staff in Western european and American famous companies with specific affinity for those who enjoyed an important role in the development of organization. Twenty samples representing twenty different ideas will be studied into research[4].

This means that the research is design the analysis to be both qualitative and quantitative while an analysis supplementary research data will be done to put the study into context. The replies will be analyzed using the Microsoft Excel.

1. 5 Thesis Outline

The dissertation is divided into five chapters namely introduction, books review, research technique, findings and discussions, and conclusions. In section one, the study background, the aim and targets, research rationale, research device and process, thesis format underlining the carry out of the study as well as the relevance of this research for both academic and non academic (industrial) goal are offered. In section two the researcher talks about the books review, which contains the strategy, this is and attribute of the business culture, the content of corporation culture, the cross-cultural issues of cross-border mergers companies, and the reason why and type of the organization culture conflict along the way of organization. To be able to facilitate capability make referrals, appropriate referencing analysis has been used in the in-text write a equivalent out-text format by the end of the study. The researcher was careful to choose and discuss the most recent where possible varieties of academic and non academic literature. In chapter three, the researcher has expounded on the strategy found in this research and has provided justification for the use of each of the techniques. The section also features the decision of the populace and the selection of an appropriate test and data collection device. The chapter ended with a point out of the test of validity of the equipment to be utilized in collection data as well as the grade of supporting personnel with who the researcher undertook this analysis. In such a study the info examination will be quite definitely depended as the key analytical device for the gathered data. A few of these include frequency distribution tables, and test of value. This can be discussed extensively in the fourth chapter of this research. In chapter four, the research and findings can be found. The conclusions of this research would be the last part of this research and would be dealt with in the fifth chapter. As usual personal references to this research and other information necessary for ease of research will be provided in the appendix [5].


2. 1 This is and feature of the organization culture

The organization culture is constituted by the worth of the enterprise, operating criteria, management style, entrepreneurship, ethics, and development goals that are agreed by all employees available practice (V. P. Clinton, 2007). Some scholars think that the business culture should be split into two levels, wide and slim aspects (Roslender, Robin; Hart, Susan J, 2002). The business culture in the extensive sense identifies the combining of the nature wealth and material wealth which the enterprises process in the process of creation and management; the thin definitions suggested that the organization culture is ideology in the development process, practices and values, and its own core is the business's beliefs (Perry, John; Woods value, Anne, 2005)[6].

Many scholars assume that the business culture is the mixture of materials and religious, and also an integration of software and hardware. The exterior cultures are present with the plant equipment, recycleables and products; in addition, the inner cultures count on the performance of enterprise management system, behaviour habits of the religious world (H. Chen, 2006)[7].

From the definition of the business culture that scholars gave above, their thoughts were mixed, the coverage is not reliable. Some observed from the point of view of the materials carriers, some centered on the spiritual aspects, others put both unify appointments. While these sessions are different, but overall, for the understanding of the business culture, each of them thought that group culture should give attention to people, that was a human-centred method of management, enterprises should be the organizations with a typical mission and responsibility. The primary of the business culture is a distributed value, common beliefs of organization employees; it's the philosophy of guiding the behavior of businesses and business people (Alberto S. Pereira, et, 2008)[8].

The characteristic of the organization culture mainly are the following aspects

1. Differences

The cultural styles of companies in various societies, different nationalities and different regions will vary, even if the two enterprises may be very similar or even in the same environment, facilities management business and system, their culture are displaying different characteristics and attraction (Bisin Alberto, Thierry Verdure, 2001)[9]. That is decided by the business survival interpersonal environment, geographic, economic and external environment, as well as the industries where the special characteristics of the business, to decide its own operation and management characteristics of the entrepreneur's personal style and overall quality of staff and inside conditions.

2. Recognition

The corporation culture is undoubtedly the value judgments and worth, which is the "consensus" and "identity" of nearly all employees (Christine M, 2006). Excellent company culture particularly taken notice of the Group and the group head, the quest for "integration" and "shared eyesight" (Avlonitis, George J. ; Hart, Susan J. ; Tzokas, Nikolaos X, 2000)[10], exchanging the whole awareness against individual consciousness. The business culture is never to force visitors to adhere to rigid regulations and self-discipline, but focus on cultural identity, emphasizing the sense of autonomy and effort of folks, through the awareness of inspired visitors to achieve self-control and self-discipline (Richter, F. J. ; Vettel, Kai, 2006).

3. Relative stability

Generation of culture provided a long-term process, and ethnic role has exercises (Schein EH, 2009)[11]. A good organization culture, in particular the forming of Habitat primary of values, often take a long time, requires a model of advanced people, need some trigger event, requires the patience of the leader. Company culture as a "sub-culture" (Roslender, Robin; Hart, Susan J, 2003)[12] also has the overall properties of the culture (Ricky Griffin, 2010). Once shaped, it will end up being the heart of business development, you won't chop and change, not modify and change with the change of the command of the business and fundamental, it'll play a important role in the enterprise for a long period.

2. 2 The content of company culture

Organization culture can be split into the business school of thought, entrepreneurial spirit, corporate ethics, teamwork, and commercial image (Bhimani, Alnoor, 2003).

The business viewpoint is usually regarded as in the day-to-day functions of the venture methodology (V. Scotter, 2006). Intense and intricate market competition, using the scientific method to guide enterprise success and development, which really is a business school of thought content.

The nature of business is the heart and soul, which is the main of the organization culture. It refers to the mental outlook of the organization mission, purpose, eye-sight of development and employees (Williamson, Invoice, 2001).

Corporate morality is utilized to adjust between the code of do and businesses and their customers, inner employees (Williamson, Charge, 2001). Moral rules doesn't have the make factor, but from an moral relationship perspective, it is essential. Moral restraints and constraints will make people understand the worth oriented.

The team nature is the concept of collective organization participants which is the mental health factors of forming cohesiveness (Claver, Enrique; Llopis, Juan; Garcia, Daniel; Molina, Hipolito, 1998)[13]. Regardless of rank, requirements or history size, all employees of the venture should be united under the direction of the same worth frontward, and concerted attempts to help make the efficient procedure of enterprises.

The corporate image means that it ought to be identified by consumers and everyone through the external characteristics (V. Scotter, 2006). LOGO, identifier will be the intangible assets that could continue to add value with the growth of corporate impact.

The theoretical system of the business culture layed out five elements, which contains venture environment, business beliefs, model employee, the form of corporate and business etiquette and ethnical sites (Perry, John; Woodsworth, Anne, 2005)[14].

Enterprise environment differs from the inner office environment, which contains the aspects of the business direction, corporate social image, the venture outside (Ketchen Jr, David J. ; Giunipero, Larry C, 2004) [15]and so on.

Operating worth are the primary of the business culture, the unite of beliefs could make inner users have a unified behavior criteria, good and evil, right and wrong may have clear identified requirements (Bhimani, Alnoor, 2003).

Model staff means that the excellent staff who dedicated to companies under the advice of the organization culture (Claver, Enrique, et, 1998)[16]. The correspondence between group culture and exemplary employees prefers the corresponding dirt and flowers.

The business etiquette form of the companies refers various acceptance awards, as well as all the business enterprise values social activities. Employees to grasp ethnical connotation of the soul in the energetic activities are far better than institutional constraints (Irani, Zahir; Sharp, John M, 1997).

Cultural network is principally used for the dissemination of group culture, internal commercial employees wish and sociable radiation function. Objectivity, balance, openness, overall flexibility, uniqueness characteristics; organization culture also has cohesion function, constraints, function, value-oriented functions, public and radiation (Benefits, Helen; Easton, Geoff, 2000).

2. 3 The cross-cultural issues of cross-border mergers enterprises

The enterprises use resources in the world; combine with host locally owned recruiting, natural resources, and even how big is the marketplace, and other advantages by means of cross-border mergers that have acquisitions, capital, technology, management skills, market linkages, research and development, that could extend transnational business, achieve complementary advantages and become the key form of business international business on a global range (Davis, R. C, 1991). International companies in cross-border mergers and acquisitions will inevitably face the unprecedented opportunities and obstacles in an alternative cultural record and physical environment.

The opportunities: cross-cultural advantage

In different ethnical backgrounds, different cultural customs, beliefs, traditions, market conditions, complex level, individual natural reference conditions could create market opportunities and high profit margin for international companies. This is reflected in the "cross-cultural superiority" (David Chart, 2002) brought in multinational functions.

John Dunning's eclectic theory known that companies just have ownership, internalization, and location-specific advantages, to be able to activate in foreign immediate investment. In different cultural backgrounds, different socio-cultural tactics, beliefs, practices, market conditions, complex level, human natural source of information conditions could create market opportunities and high profit return for international companies. This can be mirrored in the "cross-cultural superiority" (Wagner, Stephan M. ; Johnson, Jean L, 2004)[17] brought in multinational businesses. World countries including the U. S. McDonald's used the multinational procedures, its "fast-food" culture can be radiated to different cultural backgrounds, like the Asia-Pacific region (Wagner, Stephan M. ; Johnson, Jean L, 2004)[18].


Culture to the international M & A small business operator brings opportunities, but it is an enormous challenge. Different ethnic environment, as well as the various economic, interpersonal and political factors must form greater cultural differences. Due to the development of the culture is a long and slow process, these ethnic differences in terms of the enterprise, will never be eliminated over a period of time, and may continue to be stable over time. The objective lifestyle of cultural differences, a cultural discord between business and business executives and employees is the forming of a "culture shock" (Cheng Liling, 2005) mental health reaction.

In a particular international commercial acquisitions, the cultural causes of the conflict: the ethnocentric, improper use of management routines, the several perceptual miscommunication, ethnic attitudes, etc (Wagner, Stephan M. ; Johnson, Jean L, 2004)[19]. Cultural turmoil will lead to some consequences

(1) ultra-conservative: ethnic conflict affect the harmonious relations of multinational managers and local employees, relating to rigid rules and regulations to regulate the operation of the enterprise, even more alienated employees (Irani, Zahir; Sharp, John M, 1997); At the same time, employees become complacent administrator The execution of the program is also very hard, the results of both will not change lives.

(2) Communication interrupt: When the distance between managers and workers to a certain extent, the bottom-up communication will naturally interrupt results professionals can not know the truth, the two factors further and further away in a different course (Fletcher, K; Wright, G, 1996).

(3) Non-rational response: managers if indeed they cannot correctly deal with cultural conflict, it will count psychological. This irrational attitude can certainly lead employees irrational retaliation more results misunderstandings, the deeper contradiction, antagonism and issue gets keener (A. Nahavandi& A˜R. Malekzadeh, 1993).

(4) psychological grudge: clashes, the celebrations to the turmoil if not patient from each other's ethnic backgrounds in the quest for cultural "total phase", merely to complain about each other's reckless or conservative, the result will only cause common grudge subconscious. Cultural conflicts arising from cross-border mergers and acquisitions of corporations, a desire to attain a successful company, no doubt is a superb problem, if not for effective management, it will result in the loss of international corporate and business market opportunities and the reduced efficiency of the organizational framework. Internal management, due to different ideals people, living life goals and behavioural norms will inevitably lead to increased management fees, increasing the difficulty of the integration and execution of commercial goals, enhance the jogging costs of the enterprise management. In external operations, because of the cultural differences of language, traditions, values makes more technical operating environment, in doing so increasing the issue of market operators(Perks, Helen; Easton, Geoff, 2000).

Except the aforementioned discussion, lots of scholars analyzed the cross-cultural issues of cross-border mergers enterprises. Through the examination of the culture turmoil, the fact of business culture was discussed and the integration modes were analyzed. On the other hand, in 2010 2010, Tune Ying combined with the case of "TCL and Thomson's merger", the process of enterprise social integration was designed. It is meaningful for the companies in China to resolve the same questions (Songs Ying, 2010).

2. 4 The reason and type of the organization culture conflict in the process of group restructuring

The sophisticated posed by the ethnical characteristics of different forms, is a well balanced long-term cultural beliefs and historical traditions and unique management style (Dvaid Chart, 2002). It permeates lifestyle and development and procedure activities, rooted in the mindset of the employees. The business enterprise combo is the breaking of the original corporate culture model, in absorbing the social benefits of both sides based on the formation of a new corporate and business culture (V. Scotter, 2006). This establishes the two cultures (especially backward culture) to be greatly damaged, along with conventional and co-operation of the entire integration process, backward and advanced contest contradictions in the integration process, issues (V. Scotter, 2006). Therefore, the business combination cultural turmoil is inevitable; it is just a concentrated appearance of the corporate conflict.

2. 4. 1 The reason why of the corporate culture conflict along the way of company restructuring

The corporate and business culture is a long-established corporate and business culture principles and historical practices and unique business nature and style, including the guiding ideology specific to the business development strategy, business school of thought, prices, ethics, and traditions (Schein EH, 2009). Its constituent elements can be summarized in five tips: the business environment is the main factor shaping corporate culture; corporate prices creating the center of the corporate culture; corporate and business heroes are the ideals of the personification, to follow the exemplory case of the specific model of staff; service and wedding ceremony it is a plan of the day-to-day routine, a vibrant culture corporate worth can be a sound and Development; the cultural network communication companies grassroots organizations moving awareness of ideals and heroes channels. corporate culture guide commercial people consciously make work options in line with corporate values, specific worth will motivate employees to meet the business needs of tendencies exhibited in a specific environment; afflicted by the same principles and code of carry out of the employees in various time will undoubtedly seem mutually coherent (Richter, F. J. ; Vettel, Kai, 2006).

The corporate and business culture gets the multifaceted two times feature. First, the uniqueness and diversity coexist (Chow, Chee W. ; Harrison, Graeme L, 2009). The corporate culture can be an objective truth, only the professionals and cons of high and low points, no existence or absence of the other (Bhimani, Alnoor, 2003). The venture has a unique corporate culture. Because of industry, industry, possession, regional background and culture differs, different enterprises even greater differences in corporate and business culture, which is the uniqueness of the organization culture. As the organization culture is principally an ideological thing (Fletcher, K; Wright, G, 1996). Thus, they have strong historical continuity, changes flaccid. Various commercial culture can't be as easily change and fusion equipment changes, asset restructuring, corporate restructuring, which constitutes a reorganization after the commercial culture of diversity (Bhimani, Alnoor, 2003). They tend to continue to exist within a long time and are likely involved. Turmoil and friction between one another become a corporate and business restructuring of the ethnic barriers. Second of all, the eagerness and the coexistence are negative. After the reorganization of the variety of corporate culture have positive and negative two opposing characteristics. The positive aspects of performance whatsoever levels of the corporate culture smooth integration of complementary advantages, and in the training and selection process for both attributes agree that the worth and norms. Such as mixture, both exclusive their own arrogance mental, and absorb the fact of the other person in shared understanding, and in doing so create a more powerful corporate culture on the basis of their existing commercial culture fact. The negative areas of performance for the restructured corporate culture issue produce negative factors hinder business development (V. Scotter, 2006). Substantial force union, as a result of strength of the two sides evenly matched, it is not hard to admit beat the problem, both attributes consider themselves excellent and refused to simply accept the new culture and communication, and the people cannot understand each other, and the development and execution of the impact of restructuring the corporate culture, which a robust combo is not strong, weak joint condition. Third, the coexistence is intensifying and opposite (Claver, Enrique, et, 1998). Commercial restructuring and ethnical integration need to go through some of the run-in period, and impossible for a pier, that includes a progressive. And performance is a particular kind of reverse that the reorganization of businesses materials culture, system culture first run-in, somewhat than spiritual and cultural materialized result of the process of integration between the two sides (Irani, Z. ; Beskese, A. ; Love, P. E. D, 2004). Standard corporate and business culture always follow the spiritual and ethnic - institutional culture - material culture - the new soul of the culture - a fresh institutional culture - the law of the circular motion of the materials culture constantly development, restructuring corporations culture level fusion, but rather to the in contrast. Always the first material cooperation commercial restructuring, and then develop the machine, which deep-seated effect of the heart of business culture, with the change sexual. If you disregard the above features of the organization culture, and asked to create some kind of racial superiority, miscommunication, and self-centered execution and management, it will undoubtedly lead to a deep-seated cultural turmoil in mergers and acquisitions subject.

2. 4. 2 The sort of the organization culture conflict along the way of corporation restructuring

1. Corporate culture change

According to investigate and conclude some scholars' views about corporate culture change, we're able to know that corporate and business culture change includes three aspects: behavioural and cultural change, institutional culture change and religious and social change (Chow, Chee W, et, 2009).

(1) Works of ethnic conflict

Corporate action and culture means that employees in the development and management, learning activities and social entertainment. It includes a cultural trend in business, education, advocacy, interpersonal activities, ethnic and sports activities (Roth, Martin S, et, 2004). It really is a corporate and business management style, mental view; the interpersonal strong embodied the nature of enterprise, the corporate beliefs of refraction. The workers composition is divided, including entrepreneurial behaviour, the tendencies of the enterprise model statistics, the behavior of the employees and commercial behaviour (Irani, Z. ; Beskese, A. ; Love, P. E. D, 2004). M & A behavior occurs, the initial objective of the organization will be transformed, and commercial goals changes behavior to attain organizational goals as a warranty ethnic friction, collision and discord can also appear. Especially in the event incurred by the merger to tremble our corporate ideals and basic religious pillar collapsed, this turmoil is more extreme. Cultural change of corporate and business behavior entrepreneurial behavior, and create exemplary hero and control employee behavior to change. These measures notify employees what's to do and what never to do, making the employees (especially merged enterprise employees) popularity of the culture change corporate behavior. Plasticity is quite strong, therefore the change of the culture of commercial behavior, the chance and difficulty of relatively small, but also never to be taken lightly, and care and attention should be taken to integrate.

(2) System of cultural conflict

The institutional culture mainly includes three aspects of corporate leadership structure, corporate organizations and enterprise management system (Wagner, Stephan M. ; Johnson, Jean L, 2004). Cultural transformation of the venture system is preparing for the patterns of the culture and viewpoint of ethnic change, institutional change commercial culture, and corporate and business culture change may very well be strangled in the cradle. Following the merger, the change of the framework of the old and new materials layer will cause the system upgrade; will undoubtedly lead to the replacing of the command, the business and management system to regulate. In this change process, the employees often have a nostalgic psychological, tend to be superstitious respect, skip the original system, it is difficult to adjust to change, so that the new system culture turmoil intentionally or unintentionally, in the consciousness and behavior, cultural conflicts of the old and new systems inescapable. The impact of conflict such as income syndication system and the machine of cadres advertised frequently have system-wide, comprehensive mother nature and the whole process (Ketchen Jr, David J, 2004). Group's basic assumptions and values-based distinctions lead to different decision-making and a labor system often end up being the forefront of the conflict. In short, in case of the merger integration, business system of turmoil is very apparent, destructive discord will be immediate.

(3) The spirit of organization culture conflict

The spirit of venture culture refers to the enterprises in the process of production and operation, subject to certain cultural and cultural background, ideology impacts the long-term creation of a spiritual achievements and cultural concepts. Like the material of the entrepreneurial nature, business philosophy, business ethics, corporate and business values, corporate and business style and features, is the amount of the organization ideology (Roslender, Robin; Hart, Susan J, 2003). At the main of the complete corporate culture systems, is the superstructure (Avlonitis, George J, et, 2000). For the merging get-togethers, the religious and cultural distinctions and cultural conflict is the most apparent and the most challenging to mediation. Generally, the issue of the enterprise concept of ethnical change and the execution of the chance in the complete ethnical change is the biggest, they need time would be relatively long. In the business combination, the religious and cultural will first be extreme shock, which there are three main reasons why (Roslender, Robin; Hart, Susan J, 2002): (1)venture value notion as the central covering is difficult to change, because the employees considering and behavior is just about the corporate beliefs of the initial guidelines, once experienced challenges or revise often produce rejection, damage, difficult to adapt, thus preventing the forming of new values and build; (2)spirit of venture as the key body of the organization staff groups awareness, has been identified by all staff, subjective consciousness impact or by negation, collapse of the religious pillar of the staff, the employees will obviously create resentment (Roth, Martin S. ; Money, R. Bruce; Madden, Thomas J, 2004); (3) the initial enterprise business beliefs, business ideas, the mode of operation is negated, employees will feel lost and lost, and often a new business beliefs, business ideas, business methods take the attitude of rejection and level of resistance.

Chapter 4 Research AND FINDINGS

Most of the purpose of cross-border mergers immediate concentration of intangible and tangible resources of companies of different countries, and enhance the complementarily of resources, and reduce unnecessary duplication of investment, individual businesses cannot form a proper advantage through the management and financial synergies.

With the recovery of the world economic increase in the 1990s, the fifth commercial merger wave sweeping the entire world, involved in an array of industries, visible feature in cross-border mergers as the primary, additionally it is known as a influx of cross-border mergers.

4. 1 TCL merged Alcatel Circumstance Review

In January 2004, TCL merged Thomson of France, the forming of TTE company, Joint development, production and sales of color TV and its related products and services. In April 2004, TCL merged Alcatel of France, create a cellular phone joint venture company T & A.

However, the merger failed to meet up with the TCL is likely to improve the overall efficiency of the prospective, on the contrary, the TCL Group's world wide web income reduce by 50 % in 2004, a direct result of the group loss is the indegent performance of TTE and T&A. The worse, the merger led to a large range of staff leaving. The finish of 2004 to March 2005, the mature director of the French employees give up their job, the first-line managers of the marketing and sales have also still left, TCL into an unprecedented predicament.

4. 2 The research of inability in the Case

TCL chairman Li Dongsheng admits:"The success of integration will depend on the success of the ethnic integration. " For the didn't combine TCL Thomson, research its reason, there are mistakes in strategy, marketing, staffing, but more important is the ethnic facet of the conflict. The following is most clear of the two ethnic in TCL, "vassal decentralization" and "internal enterprisers system" research.

4. 1. 1Vassal decentralization cited dispute

TCL culture is a significant feature of the- vassal decentralization. Li Dongsheng has been used to parting of power, and his eyes on the results, rarely ask the facts of the management of the subsidiaries. So TCL give attention to action quickly, the staff overtime is a standard phenomenon. These types of the "separation of powers" culture make the TCL ex - prosperity. So mixed TTE also continue to use this method: adopt the way of "basic salary plus fee" in pay, results for rose bonuses, do bad substitutions.

In Thomson, the impact of French culture, the staffs give attention to quality of life, pay attention to leisure time, they think the task on the work, and the others will rest. It is stated that Li Dongsehng has carry a weekend conference in France, but found that all people off the phone. Li Dongsheng was extraordinary! Furthermore, for example, the sales procedure, the slated pay levels in France is relatively stable, with very little of a romantic relationship in deal.

Cultural distinctions "vassal decentralization" brings two outcomes: First, a sizable number of careers Thomson changes by TCL delivered officers to fill up key posts, resulting in downgrades France management highly dissatisfied; second is a pay system consequence of changes in the France the grassroots worker satisfaction plummeted.

4. 1. 2The soul of internal entrepreneurship is questioned

TCL culture has always been to encourage interior entrepreneurship, challenged in the jv. TCL executives using standard is to have the entrepreneurial spirit, adventurous people. TCL Organization meeting, sitting in front of the good performance of sector reps, sat in the rear of the poor performance of the sector associates. Such an motivating entrepreneurship culture, cultivating a number of management staff, early on in the cross-border merger, they put in the position of the key of the new group of companies.

Thomson dreams that business market leaders have received a good education, possess the theoretical knowledge and technological management methods. That TCL designated a large amount of the arbitrariness of the "internal entrepreneurs", just like a "tyrant". The brand new leadership with a significant TCL cultural id cannot establish authority employees in France before. The consequences: On the one hand, which was managers determine the TCL way, a large amount of French employees choose to leave; On the other hand, the Chinese management personnel work difficult, producing a decline in loyalty and turnover rate go up.

Thomson TCL merger is an average case of a ethnic integration of the failing of the merger failed. Such as this in the growing volume of cross-border mergers in nearly all Chinese enterprises.

JP Morgan's recent statement pointed out that China is among the most middle of Asian merger, will also become the main battlefield of the world merge. However, the opportunities and challenges coexist. At the moment, Chinese corporations generally lack the merger business integration, transnational business and ethnic integration experience. Overcome the ethnical distinctions between different countries and territories is the very soft underbelly of the situation of cross-border mergers, and how to solve this issue, China has a long-term eyesight of the tactical layout of the organization must be thinking proposition.

Cross-border merger cultural integration must be based on the theory of different social characteristics and integration of the merging functions, select compatible method. Thus, reduce or avoid dangerous cultural conflict, and enhance the commercial culture of the match.

4. 3 Lenovo's acquisition of IBM's PC business circumstance analysis

To more specifically Ming integration steps below through the Lenovo acquisition of IBM's Computer business case to study the process of the execution of the cultural integration of the cross-border mergers and acquisitions of Chinese language enterprises.

4. 3. 1Lenovo Group and IBM's Laptop or computer business mergers and acquisitions background

After several rounds of discussions, on December 8, 2004, Lenovo declared a definitive arrangement with IBM on mergers and acquisitions, and Lenovo shareholder agreement by January 27, 2005. Announced on May 1, 2005, Lenovo completed the acquisition of IBM's global Laptop or computer business. Lenovo Group of the IBM Computer business including the Think brand have scored $ 650 million in cash and $ 600 million value of stock. Following the acquisition is completed, IBM holds 18. 5% of the shares of Lenovo Group, Lenovo will control about 45% of the new Group stocks. Based on the agreement, Lenovo can use the IBM brand again within five years. So far, Lenovo has become the third largest PC manufacturer on the planet, second and then Dell, HP.

4. 3. 2The comparability of Lenovo and IBM commercial culture

Lenovo's commercial culture from the beginning a company today, experienced a complete of three main levels: the span of development of the survival of the culture - rigorous culture - the family culture.

Start at the beginning of "success of the culture", when an important feature of the organization culture of professionalism and reliability and a sense of crisis; later, with the enlargement of business level, especially Yang Yuanqing, led by the young people to leadership content, Lenovo cultural move to a" rigid culture "stressed" serious, rigid, proactive and successful "doing things the process; 2000, the relationship has proposed the concept of" family culture "also to promote" equality, trust, appreciate, devotion, "the concept, which also comply with the in company strategy to "service" the transformation of the objective need, within the business to promote staff co-operation, support and autonomy, and therefore support the company's external service-oriented business, employees and customers to have experience to family warmth, thus building a "to people-centered Lenovo customer first "and realistic, enterprising, innovative soul.

In assessment, IBM company set up in 1914 by its creator the old Thomas Watson of carry out. Until now, these values stay as the cornerstone of the business, it's include admiration for the average person, must as far as possible to give customers the best service, and must be the quest for excellent performance, this three-tiered progressively progressive relationship.

This idea of corporate and business culture as the business's growing lasted for nearly a hundred years. In 2004, company executives start "value jam" program, more than 57, 000 employees over thirty thousand sorts of suggestions and reviews, one of the 35 best views as IBM should be "what" and "how" guidance thinking. A thought has been IBM make sure of success: "IBM is the service. This is not simply for IBM, but also requires each company to market IBM products follow the same principle, making IBM's proceed to meet customer needs as a precondition.

By evaluation of Lenovo and IBM commercial culture, it is not difficult to find, for the examination of the corporate culture; it should give attention to the central layer, that profiling over a spiritual level. The three degrees of the organization culture is it progressive step by step, spiritual layer to steer the looks of the materials layer and system layer, material layer and system layer and reacts to the changes in the religious dimension prices. Because of this, it could be Lenovo and IBM's core ideals, the similarity of the comparison.

Table 4. 1 the contrast of Lenovo and IBM commercial culture

Lenovo Group's core corporate and business culture(values)

IBM's core corporate and business culture(values)

People-oriented, customer first

Dedication to every client's success

Enterprising, innovative

Innovation that counts, for our company and then for the world


Equality, trust

Trust and personal responsibility in every relationship

Although mergers and acquisitions both corporate and business culture are some dissimilarities in the appearance, but in terms of core principles, rather than diverging too much, which reduce a whole lot of resistance to cultural integration.

4. 4 The merger successful experience analysis

According to the comparison of the organization culture of both companies, established an entire set of corporate ethnic integration program to make it constant with the complete procedure for cross-border mergers and acquisitions. Corporate culture fusion process is divided into early on, middle and past due levels, as shown below

Figure4. 2 Cultural integration of Lenovo and IBM's M & A small business process diagram

The first step: the formation of the band of corporate cultural integration is temporary, its mission until the new corporate culture has been founded to fusion diagnosis statement as standard. The amount of the group shouldn't be too much, requires the forming of guide Management magnitude of 6-7 people. Including: the primary person in charge of the new enterprise & A person in charge of the implementation of the merger plan of both sides each one, Training or a person in charge of the human resources department, one individual responsible for publicity and planning, one person responsible for performance evaluation, commercial culture expert (can exterior).

These seven individuals, in addition to the corporate culture experts, and other needs is brain of M & A functions the original˜especially familiar with their own circumstances, good coordination within the venture have an effect on the sector. By the individual responsible for the new venture is accountable for the operation of the whole team, he also wanted that the initiator of the merger plan, such cross-border M & A strategy and corporate and business culture can combine fusion progress. The corporate culture experts play the functions of the General Personnel, as an outsider, a more objective analysis of the integration of corporate and business culture. The composition of the whole group as shown

Figure4. 3 Stop Diagram of the organization culture fusion group members

The second step: Lenovo and IBM's integration of corporate culture to corporate and business culture compatibility survey as a starting place for the implementation. The research should be in charge of the corporate culture experts. The results of the inspection because they are in addition to the enterprises, more purpose, to reduce the possibility of cultural conceal or fictional culture. Meanwhile, the enterprise culture in the areas of the analysis should concentrate on compare "spirit level" this important difference. Fortunately, Lenovo and IBM aren't very different. IBM to provide better service, Lenovo is to create well-known international brands. The long-term strategy is depending on each other, it is not hard to create spiritual new business values.

The third step: after the end of the inspection, we can use the technique of combining the two corporate cultures; corporate culture is defined more clear and easy to comprehend. Lenovo and IBM converged central values of commercial culture should include four aspects: "customer successes, entrepreneurship and development, pragmatic, mutual trust ". That is a high-level summary of both culture, along the way of cultural integration in the foreseeable future, you should always in the four aspects as viewpoint, regulate the criteria of conduct. In the meantime, taking into the differences of both company's regional culture, on the same affairs understanding and treatment will have a deviation. To formulate a more detailed publicity and training programs for promotion and training specialist, in kind, pictures, movies and data from each nationwide cultural understanding and encourage both employees recognize each other's interest, and coordinate various lectures, seminars will be a series of direct exchanges, increase mutual understanding, particularly by means of case to learn the typical difference between the two sides deal with various issues, and to promote knowledge of each other's thought process in the debate, and also to identify mutual accept a viable program.

The fourth step: the results relating to advocacy training, as the info on the prevailing enterprise system advancements necessary to establish a standardized system layer function. Then, from the grass-roots staff and senior market leaders, the two angles at the same time behave reform. "Both ends of the first", middle managers often would prosper to follow the footsteps of the senior, the clear reason for the reform, and junior officers is a particular implementation of the primary cultural integration of varied behavior directly bearers. If you don't keep up with their thinking and understanding, will have an impact on the overall aftereffect of the fusion.

The improvement of the action is the requirements relative to the instructions of the system layer. From the mature as a coach, as by the grassroots experts, both good combine ethnical fusion from the original two enterprises in to the internal ethnic communication. Avoid cross-border mergers and acquisitions in the country's ethnical differences, and gradually establish a cultural exchange mechanism, from the overall perspective of the business, For example, the use of IBM employees are willing to take the effort to express the characteristics of personal thoughts, often suggest some discussion, to achieve the reason for the exchange; China's Lenovo employees can set up views mailbox closed form thoughts exchanges.

Step Five: After a period of working, the new commercial culture has been slowly but surely formed, when the need corporate and business culture fusion group supervision and evaluation. Analysis of such guidance according to a fresh commercial culture as the conditions, the emergence of a myriad of sudden situations and answers to evaluate, requires it to be prepared in accordance with the procedures of the machine, and considering the absence complemented makes each kinds of system dynamic perfect. If there is a new cultural produce, it's the need for the information feedback to be able to convenient promotion and training to the culture.

Step Six: cross-border M & A strategy is actually completed, the group cultural integration make a written record of the diagnosis. Analysis of existing advantages and weaknesses, also to be considered from the perspective of the global, especially commercial culture and a number of other resources the combo of financial, staff freedom, technology development and other areas, if the new culture of the enterprise can be good to market growth somewhat than hinder venture development. At the same time, if the new culture has been proven, will have timely dissolution of ethnical integration team to them as role models, as a fresh culture of practice, they play in the M & An enterprise.

Chapter 5 RESULTS

After the earlier survey analysis shows that, on mergers and acquisitions, management issues, mainly the following reasons

5. 1Cutural differences

Cultural variations is its ethnic ideas from each country, cultural, communities, organizations, and the formation of different cultures, different countries, communal systems, economical development, religious values, ethnic distinction, personality traits, level of education, cultural fulfillment formation culture.

The connotation of social differences including many aspects East-West cultural differences, countries cultural differences, variations in national culture, regional ethnical differences, cultural dissimilarities, different historical cycles and cultural variances, etc. they are present in the many domains of management, process nook, effect and even determine their business design development toward efficiency, performance results even success or failing.

People of different cultural background, business viewpoint and management style is often very different, this is the important reason that contributes to cultural differences. Traditional western companies emphasized action; concentrate on the effort of the management, unquestionably Asians intuitive rational way of thinking in the management. This totally reflects the ethnical differences of each other, each other's variations, but also shows some type of fusion. Although today's world is becoming more conspicuous work of globalization and it, different countries, countries, businesses first contend with each other, learn from faster and faster, increasing to strong potential, but because of cultural differences between real human social each other there is always a natural point out, making any social goals of management can perform powerful in conditions of the procedure of economical globalization, the impact of ethnical differences on management tendencies and method, interrelated is a growing need attention and study.

5. 1. 1 Eastern and American culture system differences

Oriental culture, including Chinese language cultural system, social system of India, the Arab Islamic system, oriental culture includes all the traditional role of the Orientals knowledge, prices and habit of cultural factors. European culture, including Western spiritual traditions, the value of ethics, literary and creative achievement, the idea of ideology, customs and rituals, vocabulary system. Therefore, objectively speaking, the addition to the system of distinctions and the amount of productivity differences, leading to variations of different management models fundamental reason is based on the different ethnic system differs ethnic types. In European countries there are very different culturally bound to impact and penetration entrenched thinking and patterns. Western countries, its social track record from the European Renaissance, and by the Religious far-reaching effects, concentrating on speculative reason that only speculative reason things is the most real, the most perfect, the abstract thought process as a basic methods to understand things. Concentrate on the privileges and freedoms of the average person, free of bondage, and stressed personal liberation, emphasizing the rational spirit, the quest for knowledge and fact, the courage to practice with adventure. Within the interpersonal aspect, logical and clear, translucent directly. Far-reaching impact of China's ethnical background affected by Confucianism, pay attention to comprehend the truth from a special and specific intuitive sensory, intuitive, introspective personal experience to get awareness.

Importance of personal responsibility, devotion and service categories, advocate the harmonious coexistence between people, stressed that "guideline of virtue" and "benevolence governance", emphasizing the mixture of rationality and irrationality. Consider the problem in the attitude from the complete and long-term point of view, consider the feeling of others, and give attention to the bonds of a friendly relationship between your people. The entire East-West cultural distinctions anticipated to different countries, nations gradually developed in a different living environment with all the current style setting of creation and life-style, raising a number of cultural system type. The identical country, the law of action of the country because of changes in the surroundings of life and culture in different historical periods, exhibiting a different social system. The former is the nationwide identity of the social system (or local), the latter is the period of the ethnic system (or stage). Cultural dissimilarities, refers to people in several countries and communal cultural differences. Due to the different degrees of economic development, public systems, physical environment, the conditions of the various cultural system regular evolutions in the historical development of the procedure of development, thus create a variety of ethnical types and settings, resulting in a special system of different ethnicities.

5. 1. 2 Dissimilarities in customs and customs of nationwide culture

All ethnic groups in the creation of long-term record of the development process with the nationwide characteristics reflect the annals and public life of the country's culture. If the countrywide community in the annals of mankind has been formed and distinguish it from other tribes and Community type, culture is obviously performance for vary even significantly different nationwide culture. Culture and ethnical masterpieces are rooted cultural and national community, no nationwide world; the fertile garden soil of life, culture wouldn't normally by rooting. The culture of the cultural and nationwide community to be shaped, as it offers the basis of the most widely used materials and spiritual, as well as other aspects of implementation of national distinction, and its own overall internal structure and complete and external look. In the inner framework of the national culture, there's a good qualifications for the type of stage, class, quality, various interest groups, as well as vocabulary, religion, and may lead to the living and development, and social differences, but so long as a region or ethnic community persists, it will always have some kind of a common countrywide culture. Performance distinctions in the politics, economic, cultural, words and way of life, customs, among all the countries in the historical development of the long-term procedure for gradually developed with the development of ethnic and national community change, but won't disappear for a while, national, cultural and cultural variations are destined to exist. Different cultural and ethnical upbringing different ethnic behavior, attitude to life. Different ethnic groups and customers have a particular value orientation; follow certain traditions and cultural norms.

The following example is illustrative of the national and cultural distinctions: When Sony company developed to multinational procedures, Sony bought several large companies in america, when he performed a very successful commercial culture and strategy in Japan, management mode and approach to use and shifted to america, the executable for a period, the problem will soon be prominent. Sony Company of Japan executives don't realize: Why Japanese workers preferential treatment and benefits for U. S. employees, worker turnover and job-hopping occurrences arise still ongoing? May be the company's management problems yet? Sony companies have done a lot because of this investigation and analysis, the results proved that, this is not own the company's commercial culture or tactical problems, nor is their own business management and provide treatment, welfare problems, however the habits of People in the usa, that is, the consequence of cultural dissimilarities and cultural issue. AMERICA used to employees in an venture or a post focus on two or three years and then change jobs or in venture, and this patterns doesn't have any elements insults or negative-to-business, no employees refuse or pity the ingredients, Nonetheless it is a standard social trend, is a behavior, just like Chinese language people are being used to consume with chopsticks, no why to work with chopsticks, no nothing to discuss.

5. 2The organization values differences

Values are visitors to their own encompassing things, folks, and events, value and the prevailing evaluation and view, it is people assess the protection under the law and wrongs of the typical; it is the core of organization culture part. Principles have very strong leading, it immediately control business leading thought and awareness, and has a solid subjectivity, which can determine the enterprise staff of the ideological trend, behavior and beliefs, and principles of the shake will straight lead to the management of the business and management contradictory produce. Every country, nationality, group has a new value system, and each person consequently of different education background, growing environment also can form independent prices. Different ethnicities have their own ideals, principles embodied in the culture of the various elements, each countrywide culture are constitute a distinctive cultural model, because ideals through it. In a way, enterprise cultural problem is actually the conflicts of principles.

Enterprises in the multinational business, business cultural problem first concentrated expression in staff individual different principles, the difference beliefs fuses in alongside one another, will happen friction produce collision, leading to enterprise staff the initial ideals orientation which rooted in their hearts impact, its main body consciousness will be influenced by negative and altered, even collapse, and every individual are by instinct, protect their long amount of the forming of ideals system, despise negative prices of others, never to the forming of a unified code of carry out, so the principles of the dissimilarities and conflicts will be the enterprise culture main embodiment of the dilemma.

5. 2. 1Enterprise nature differences

Enterprise nature is showing enterprise employee in long-term production and procedure management process, the value system of control and the raise, gradually formed and maximize out group consciousness, is the complete value system kernel. It's the enterprise tenet, business ideal, the venture management idea, the venture values, enterprise faith, the business ethics and the highly generalization, is the enterprise staff have mutually, common grasp the idea, is the business the innovative consciousness and a good reflection of the style. Reveal organization goal, their own pursuit and enterprising awareness. It's including creation, technology, competition, enterprising and quest, and outstanding awareness genes. The heart of organization has a certain cohesive make and radial make, information and enlightenment function, venture spirit once made group mental set in place, can through the clear consciousness dominate behavior, can also produce action through the unconscious. Enterprise idea change results can improve personnel dynamic responsibility and maintenance venture management norms, the perseverance for the realization of the purpose of enterprise and add their durability. Multinational management, the initial spirit of business will meet the impact of other values, when this heart is attained extrusion and modification, it's will impact employee values and ideas, in employee psychological inconsistency, one another resonance inner attitude, will condition, the idea talk about and ideal pursue to create fuzzy express, if these prominent thoughts and ideas tremble, inevitable conference produces enterprise ethnical issue problem for enterprises, and the long-term development of the multinational business will produce adverse effect.

5. 2. 2Operation and management notion differences

Operation and management idea is the concentrated reflection of ideals; it is the enterprise manag

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