Merger refers to the joining of two or more companies to form a single legal entity. Although merger givers companies ready market access, especially in new geographies, in the context of global expansion, a study focusing on cross-border M&As indicated a 57% rate of success (Dobbs, Goedhart & Suonio 2007). There are many common reasons for failure in M&A, and one of them is cultural issues, particularly at the outset.
Now, there is a proposed merger between an Indian company and a British company. The author has been appointed to lead a team consisting of managers from both countries to examine any cultural problems linked to the proposed merger. Thus this essay will focus on how close the cultural fit would be and how the author might seek to improve cultural understanding between the two groups of managers.
This essay will cover all the cultural issues/elements relevant to this essay as well as their application in the two countries.
In addition, in order to enhance the systematic understanding of the cultural differences between the two countries, Hofstede's five cultural dimensions theory will be applied in this essay because it is widely used and easy to be understood.
Quantitative analysis method is used in order to do the systematic scientific research for the purpose of this essay. Hence the data will be collected based on the second sources such as texts, Internet, Journal articles, interview with some India friends who are currently working in Malaysia (the athor is currently studying in Malaysia).
The key limitations of this essay lie in the following aspects: First, the author has insufficient experience in international business management; second, it seems difficult for the author to collect data in the two target countries, whereas the second data may be out of date. Hence this...