Case Study On Merging Of Two Companies

Submitted By sowjanyaakula
Words: 3245
Pages: 13


It is all about Merging of two companies, representing different nations. Each one has their culture and their own standards and style to deal with their merging of business. One of them have a success history of doing business and the other has proved best in very short span. The England culture is entirely different with that of German culture. It is very clear that both the companies have not really realized that they are getting merged and they have entirely different values on handling the business. England Company- focuses on time frame and German’s focus on the task.
The recruitment procedures are different in these two cultures, the English recruitment process was recruiting the ability of the employees and the German process is the qualification and training. Both the process seems to be right but the new company need to use them in more effective way. They have to look for a globalised atmosphere – where everyone is treated equally. They should be working on leaders who can manage the diversity culture groups and enhance the productivities and efficiency of the work place. Both the companies need to come out with global thoughts rather than sticking back at their own domestic thoughts.


S. No. | Contents | Page No. | | Executive Summary | 2 | 1 | Introduction | 4 | 2 | Discussion | 5 | 2.1 | Examining Types of Cultures using Frameworks | 5 | 2.2 | Lack of Cultural Values Affecting the Business | 8 | 2.3 | Impact on Administration of Business with Different Styles | 9 | 2.4 | Leadership Development Plan | 11 | 3 | Conclusion | 13 | 4 | Recommendations | 14 | 5 | References | 15 |

Here, the case study is about two major companies of food industry- from England and Germany. After many discussions, they both finally looking to conclude on some settlement process and get succeeded with a smooth merging. The English company Royal Biscuit started ten years back in London. They are majorly known for the British snack food. The Germany firm Edeling GmbH was established in Munich 120 years ago and produce many German beloved food. The new company after the merger will be the second largest consumer foods business over the world. The policy of this merger was “merger of equal” which means both the companies have equal authority and power in the new firm. But the fact is that the two companies are trying to put their attitudes over one other and the cultural differences is one major part affecting them so badly that they hardly understand each other. The cultural conflicts come along and have a lot possibility to destroy the new merger company.

On our group discussion we are looking at the cross culture problems and analyzing the problem by the models and methods we learnt such as culture value dimensions to compare the differences of the English culture and German culture, and their behavior by which it is affecting the management and merging. And finally we would draw to a conclusion on how to handle this situation.

2.1 EXAMINING TYPES OF CULTURES USING FRAMEWORKS: In this case, we can say that both parties are facing cross cultural behavior differences. Both the parties are Ethnocentrism- thinking they are the best and