Leadership and management issues that might occur in SABMiller takeover of Fosters - Essay Example

Leadership and management issues that might occur in SABMiller takeover of Fosters As the takeover deal got sealed of Fosters by SABMiller, the take over after months of negotiations and rejected offers got sealed at $9.9 billion AED. The takeover had previously raised a lot of concerns amongst Fosters shareholders but ultimately their concerns were resolved. Though these concerns were quite legitimate and of importance but this takeover also raised management and leadership concerns.The main reason for these differences can be linked to the roots of cultures these organizations started from.

SABMiller had UK business culture prevailing while Fosters a typical Australian organization. The Leadership styles and the organization culture though are quite similar between these cultures yet there are some major differences which can be lethal if not looked into.The British business culture is more formal and there approach is more money oriented while they like to engage in work with people. The management and leadership put more emphasis on organization structure having defined hierarchy and ranks.

This approach leads to an organization in which employees have to adhere to strict norms and follow rules while interacting within the organization. Australians on the other hand are less formal and casual in situations, they are more motivated by the organization itself rather than people working around them. The managers like to take direct part in the employee progress and have an environment similar to a coaching culture. They are more performance oriented rather than power oriented indicating that if SABMiller management will have certain issues while making policies and decisions regarding organizational changes.

Fosters employees can face lack of motivation when made to work in teams, changing their approach towards monetary returns, interact formally with peers within the organization and maintain a formal attitude throughout the working day. Management has to employee Change managers typically familiar with both these cultures so as to keep a balance and achieve a balanced workforce. The leadership in UK is more keen on monetary results i.e. they base success on the result on the financial return the team or employee brought rather than the performance in the situation.

This leadership style can be troublesome for the Australian employees. Also dealing with Unions will be a critical task for the new management. They would need a flexible leadership that will accompany the demands of unions and not limit power to the leadership.References:Patrick Merlevede. ( July 2002). Comparing Australia to the U.S. and U.K.. Available: http://www.jobeq.com/articles/cultural_modeling.php. Last accessed 10th OCT 2011.ABC.net. (September 22, 201). Unions worried about Fosters job losses.

Available: http://www.abc.net.au/news/2011-09-22/unions-worried-about-fosters-job-losses/2911742/?site=northandwest. Last accessed 10th OCT 2011.Ben Clarke . (-). Cross-cultural management: Kraft’s. Available: http://www.ceoforum.com.au/article-detail.cfm?cid=6063&t=/Ben-Clarke-Kraft/Crosscultural-management-Krafts-. Last accessed 10th