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(Storey & Co) case study analysis - Essay Example

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Story & Co is also looking at the same by planning to acquire Gittins & Edwards for entering the US market. However, the company faces major HR (Human Resource) issues on account…
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Download file "(Storey & Co) case study analysis" to see previous pages... The top 4 factors identified are talent retention, effective communication, leadership retention and cultural integration (Stahl et al. 2004). Another important factor that has been seen to influence this acquisition negatively is the insecurity it induces in the acquired firm’s employees (Stahl and Bjorkman.
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2006). This has direct implications on employee morale of the acquired firm. The uncertainty of the entire operation can lead to insecurities about their job in the minds of the acquired firm’s employees. We have seen that so far no communication has happened with regards to this acquisition. National cultures also play an important role in cross-border acquisitions. In our case also cultural integration holds the key to successful merger. Storey is used to a high handed culture where they impose their own practices over the acquired firm. For example, British people are more neutral in expressing their emotions at work place as compared to Americans (Hoecklin 1995). This means that American working style is more expressive and open than British. This can be seen in our case also as the owners of Gittins & Edwards propagated an informal culture while Storey had a very heavy handed acquisition experiences in the past. Hence, the heavy handed attitude of Storey can emanate negative responses from the more open and informal acquired company. (Bowen, Galang and Pillai 2002). The employees of Storey have been seen to exert their policies on to the new firm it acquires. This can lead to major attrition and loss of talent as there is a major cultural difference in the two firms’ operating styles.
The environment within an organization is highly dependent on the attitudes and values of its present and past leaders (Bhattacharya 2010). This has implications for our case as well. The leaders at Gittins & Edwards show a very informal but commercial style, while the British communication style is very formal. Hence the employees of the acquired firm will not ...Download file "(Storey & Co) case study analysis" to see next pagesRead More
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