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Cultural Variation across International Organizations Table of Contents 2 Introduction 3 Key Components of Culture 4 Values and Beliefs 4 Communication Styles 5 Negotiation Styles 5 Leadership Styles 5 National and Organisational Cultures 6 Managerial Myopia 7 Integration Mechanism 7 Integration 9 Assimilation 9 Separation 10 Deculturation 11 Impact of Culture on International Merger & Acquisitions (IM&As) 11 Communication and Ambiguity 12 Cultural Integration 13 Training Worksheet 14 Conclusion 17 References 18 Introduction The global competition commandment has been observed due to an elevated amount of convergence both in the organisational operational procedures and cultural distinctivene…
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Download file to see previous pages The encouraging movement of IM&As has been recognised especially in developing countries which has facilitated in providing scope for maximizing and reshaping the financial structure of the global boundaries. With this concern, it can be observed that the Mergers and Acquisitions (M&As) are frequently not able to ascertain the overall financial benefits of M&As due to not keeping abreast with the recent trends (Chapman, 2003). The paper takes into consideration a competitive analysis of increasing amount of FDI through the IM&As and its impact on the culture of the United Kingdom and China. The paper also intends to focus on the various cultural differences and their impacts on the aspect of IM&As. Key Components of Culture Values and Beliefs Individual’s values and beliefs are the fundamental aspects of cultural deviation within a community. The notion of value can be defined as the various evolving aspects that affect a person while acquiring decisions or doing any activity in relation to development of the social culture. The dissimilar national cultures involved within the cross boarder M&As endorse increased opportunities along with augmenting the amount of risks within the enterprises (Comminicaid, n.d.). It has been observed that the process of M&As create certain difficulties for the merging enterprise to be integrated due to its double layered of socialization norms where, the organisations need to fiddle not only with a different national culture but also the values and the traditions of the firms of another country. With this concern, the higher individualistic characteristic within the UK employees enables to ascertain the development of individual performances with their creativity and innovative ideas. However, the values within Chinese culture are frequently observed as a significant aspect in terms of establishing the culture in managerial and organisational practices. The strong importance upon the dimension of collectivism and correlative group behaviours are highly observed within the business culture of Chinese organisations (Cheng & Seeger, 2012). Communication Styles The communication style of the business organisations is an important part to negotiate and perform various operational as well as organisational practices. The communication style enables to create a sophisticated relationship between two different organisations having diverse cultural norms. Moreover, communication can be considered as a major aspect that impacts on the business culture in case of M&As. With this concern, the European communication styles play considerably an eminent part in terms of maintaining a positive and comprehensive communication within the various organisational practices. The communication style of the organisations in the UK and China should be adequate to perform an idealistic approach of IM&As (Stahl & Voigt, 2006). Negotiation Styles Negotiation can be considered as a feasible strategy for an organisation to achieve the height of success in global business. The people of the organisa ...Download file to see next pagesRead More
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