Internatinal Business Environment

In today’s globalised and innovative world an organisation needs to set their standards with the holistic approach to achieve not only growth and profits but also the employee satisfaction. International Mergers is one of the step through which companies are reaching towards their goal. Here Culture plays extremely vital part to motivate the employees in case of M&A.

As the Leader of a team consisting of the managers from an Indian company and British company, I will try to examine and resolve the cultural problems linked to the proposed merger of these two companies, by assessing and improving, the cultural fit and cultural understanding between the two groups of managers through this documentary research. In this perspective of international M&A, culture has a direct impact on how people approach, perceive and contribute towards business transactions (Weber, 1996).

The main objectives of this paper are as follows:

1) To examine the role of culture in M&A integration process for an Indian and UK company.

2) To identify the cultural fit between these two companies.

3) As a team Leader, to propose a framework for managing the cultural integration process in order to improve the understanding between the two groups of managers.

This paper starts with the general discussion about the culture and cultural diversity including their impact on international M&A. The next section looks into the cultural diversities along with the cultural similarities for an Indian and UK company by referring to the Hofstede’s Cultural Dimensions Model. Final section explore the need for cultural due diligence to manage the cross cultural issues followed by the cultural integration to make the M&A process efficient and profitable.

Culture:

According to Miller (2000) Culture is the set of ethics, behaviour and attitudes swayed by the individual or team behaviour within an organisation. Corporate Culture is proportional to the Corporate Strategy where microanalysis...