Paper converters Ltd - Essay Example

The relevant research should focus on the potential existence of cultural differences across the organization. These differences, if they are major, can set barriers to the growth of the organization. Current paper focuses on the post merger challenges of a British firm, Paper Converters Ltd. The firm was created after the merger of two firms that was based on different culture: a) in the first of these firms, Dyson Paper Ltd particular emphasis has been given on structure and control, b) in the second firm, Jones Sales Agents Ltd, team-working was rather valued.

The implications of cultural differences for mergers are reviewed in this paper. . report The report has been developed in order to provide to the leaders of Paper Converters Ltd a series of recommendations for managing effectively the post merger effects and for reduce risks in regard to their firm further expansion. At the same time, the report shows the value of culture for joint ventures both at national and international level. Background of company Paper Converters Ltd established in 1988, as a result of a merger between the following firms: Dyson Paper Ltd and Jones Sales Agents Ltd.

From its established up to 1993, i.e. for about 5 years, the two firms had kept their independency, operating in their pre-merger offices: Dyson Paper Ltd in Corby and Jones Sales Agents Ltd in Stevenage. The need for increasing the level of their production led the two firms to integrate their operations. The firms’ leaders identified a building that could be used as the head office of Paper Converters Ltd. Shortly conflicts appeared in the workplace. Employees of each firm had worked under different culture and could not understand or tolerate the behavior of their colleagues.

The leaders of the two firms tried as possible to eliminate these conflicts but with no particular success. The culture-related challenges for Paper Converters Ltd were continued during the firm’s internationalization. Dyson and Jones, the leaders of the firm, thought that by expanding in a developing region, such as central Africa, would help their organization to increase its profitability. After entering Zambia the firm’s leaders had to face another problem: Zambian staff was reluctant to follow the organizational rules on a series of issues, such as ‘the authority of expenditure, the appointment of senior managers, the terms of approval of payments and so on’ (case study,