M&A Culture Factor Indian Context

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The document discusses the challenges faced by DaimlerChrysler after their 1998 merger. It notes their differing corporate cultures, with Daimler having a hierarchical structure and Chrysler being more team-oriented. The merger struggled as Daimler asserted more control and Chrysler's independent culture was disrupted. Cultural differences in areas like communication styles, leadership, and customer approaches posed integration challenges.

Business

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This paper is based on the premise that for business organizations to succeed in our globalized, competitive international environment without a „globalized‟ culture, business managers need to have a sound and practical knowledge of cross boarder cultures. Believing, as Dewey (1938) long ago recognized that “there is nothing more practical than a good theory”, the paper identified from the professional literature and discussed seven theories of culture. The understanding of these cultural models would help the business manager to become more intelligent, culturally more sensitive to cultural differences, develop cultural competence and became more effective and efficient as he/she works to overcome cultural complexities that can negatively affect business and business profits.

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As people engage in more international travel and become more familiar with other countries, will cultural difference decline as a roadblock to international understanding or will the continue to be a major barrier? Defend your answer. Why are multinational enterprises getting involved in corporate social responsibility and sustainable business practices? Are they displaying a sense of social responsibility or it is merely a matter of good business, or both? Solution Multinational and cross-cultural teams are likewise becoming ever more common, meaning businesses can benefit from an increasingly diverse knowledge base and new, insightful approaches to business problems. However, along with the benefits of insight and expertise, global organizations also face potential stumbling blocks when it comes to culture and international business. While there are a number of ways to define culture, put simply it is a set of common and accepted norms shared by a society. But in an international business context, what is common and accepted for a professional from one country, could be very different for a colleague from overseas. Recognizing and understanding how culture affectsinternational business in three core areas: communication, etiquette, and organizational hierarchy can help you to avoid misunderstandings with colleagues and clients from abroad and excel in a globalized business environment. 1. Communication Effective communication is essential to the success of any business venture, but it is particularly critical when there is a real risk of your message getting “lost in translation.” In many international companies, English is the de facto language of business. But more than just the language you speak, it’s how you convey your message that’s important. For instance, while the Finns may value directness and brevity, professionals from India can be more indirect and nuanced in their communication. Moreover, while fluent English might give you a professional boost globally, understanding the importance of subtle non-verbal communication between cultures can be equally crucial in international business. What might be commonplace in your culture — be it a firm handshake, making direct eye contact, or kiss on the cheek — could be unusual or even offensive to a foreign colleague or client. Where possible, do your research in advance of professional interactions with individuals from a different culture. Remember to be perceptive to body language, and when in doubt, ask. While navigating cross-cultural communication can be a challenge, approaching cultural differences with sensitivity, openness, and curiosity can help to put everyone at ease. 2. Workplace etiquette Different approaches to professional communication are just one of the innumerable differences in workplace norms from around the world. CT Business Travel has put together a useful infographic for a quick reference of cultural differences in business etiquette globally. For instance, the.

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Culture, Management Style, and Business Systems Chapter 5 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives LO1 The necessity for adapting to cultural differences LO2 How and why management styles vary around the world LO3 The extent and implications of gender bias in other countries LO4 The importance of cultural differences in business ethics LO5 The differences between relationship-oriented and information-oriented cultures 5-‹#› Business Customs in Global Marketing Business etiquette is largely driven by cultural norms. Cultural analysis often pinpoints market opportunities, gives companies a competitive edge 5-‹#› What we learned in Chapter 4, particularly Hofstede’s cultural value dimensions are applicable to business customs and how business is conducted in various countries. For example, in high power distance countries, authority and hierarchy needs to be respected while conducting business. 3 Requires Adaptation Adaptation is a key concept in international marketing To successfully deal with individuals, firms, or authorities in foreign countries, managers should exhibit: open tolerance, flexibility, humility, justice/fairness, ability to adjust to varying tempos, curiosity/interest, knowledge of the country, liking for others, ability to command respect, and ability to integrate oneself into the environment 5-‹#› Unless marketers remain flexible by accepting differences in basic patterns of thinking, local business tempo, religious practices, political structure, and family loyalty, they are hampered, if not prevented, from reaching satisfactory conclusions to business transactions. 4 Cultural Imperatives, Electives and Exclusives Cultural imperatives: business customs and expectations that must be met, conformed, recognized and accommodated if relationships are to be successful Cultural electives: areas of behavior or to customs that cultural aliens may wish to conform to or participate in but that are not required 5-‹#› Cultural imperatives are “must do” things in another culture, such as meeting and greeting, exchange of business cards in Asian cultures (eg: China, Japan and Korea). Cultural electives are optional activities that a foreigner may or may not want to engage in, such as drinking aperitifs (strong alcoholic drinks) before lunch in the Czech Republic or coffee in Saudi Arabia, no offense is taken if one refuses to participate in these cultural customs. 5 BEIJING, CHINA: German Chancellor Angela Merkel and Chinese Prime Minister Wen Jiabao toast after the EU–China Business Summit at the Great Hall of the People in Beijing. The summit was boosted by the settlement of a trade row that had left 80 million Chinese-made garments piled up in European seaports, unable to be delivered to shops under a quota pact agreed to at the time. Drinking half a bottle is a cultural elective, but taking a sip is more o.

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Our values, priorities, and practices are shaped by the culture in which we grow up. Understanding other cultures is crucial if you want to sell your products to other cultures in our country, sell to other countries, manage an international plant or office, or work in this country for a multinational company headquartered in another country. The successful intercultural communicator is Aware of the values, beliefs, and practices in other cultures. Sensitive to differences among individuals within a culture. Aware that his or her preferred values and behaviors are influenced by culture and are not necessarily “right.” Sensitive to verbal and nonverbal behavior. Flexible and open to change. The first step in understanding another culture is to realize that it may do things very differently, and that the difference is not bad or inferior. The second step is understanding that people within a single culture differ. When pushed too far, the kinds of differences summarized in this chapter can turn into stereotypes, which can be just as damaging as ignorance. Psychologists have shown that stereotypes have serious consequences and that they come into play even when we don’t want them to. Asking African American students to identify their race before answering questions taken from the Graduate Record Examination, the standardized test used for admission to graduate schools, cut in half the number of items they got right. Similarly, asking students to identify their sex at the beginning of Advanced Placement (AP) calculus tests, used to give high school students college credits, lowered the scores of women. If the sex question were moved to the end of the test, about 5% more women would receive AP credit.1 Don’t try to memorize the material in this chapter as a rigid set of rules. Instead, use the examples to get a sense for the kinds of things that differ from one culture to another. Test these generalizations against your experience. When in doubt, ask. Microsoft in China To succeed in China, Microsoft had to drastically alter its business practices. Probably the most obvious change was pricing strategy. Microsoft found many Chinese using its expensive software— for free, thanks to pirated versions. Bill Gates argued that if the Chinese were going to pirate software, he wanted it to be Microsoft’s. Accepting the piracy turned out to be a smart move; about 90% of China’s 120 million PCs use Windows. And Microsoft has dropped the price for legal copies; packages of Windows and Office sell for $3 for Chinese students. Microsoft also had to learn how to collaborate with the Chinese government instead of fighting it. It offered China the right to substitute some of its own software in the Windows source code so that sensitive political and military offices can install their own cryptography. In return, the government is requiring central and provincial governments to begin using legal software. Adapted from David Kirkpatrick, “How Microsof.

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