Achieving Successful Cross-Cultural and Management Integration ...

More documents

Recommendations

Info

Achieving Successful Cross-Cultural and Management Integration: The Experience of Lenovo and IBM By Sharona Peng The literature of management and cultural integration has already been replete with cases of merger and acquisition in which managers tackle cultural integration of their employees from a Western perspective. But a smattering of literature has discussed cultural integration in an Asian context. With recent strategic alliance forged by Lenovo and IBM, the two giant companies have entered into significant, long-term agreements that will enable Lenovo to take advantage of IBM's powerful worldwide distribution and sales network. The purpose of this paper aims to provide a case study in the cultural integration strategies that Lenovo has undertaken and to exam and investigate how Lenovo and IBM could successfully address the problem of corporate and national cultural integration. This is based on empirical findings, and on literature that, in the analysis, has proved to corroborate these findings, or insights gained from these findings. The research design is grounded on an interpretative approach, and the data were gathered through face to face semi-structure interview of employees from Lenovo. 8 / 78
Achieving Successful Cross-Cultural and Management Integration: The Experience of Lenovo and IBM 2.0 Literature Review By Sharona Peng This section will provide a theoretical background understanding of merger and acquisition, particularly on to benefits and motives as well as the integration of two companies in terms of both national and corporate culture. 2.1 Benefits of Merger and Acquisition from the Chinese Perspective Traditionally, exploiting economies of scope and scale or taking advantage of market imperfections was deemed by firms a dominant way of achieving competitive advantage . However, due to the forces of globalisation which have caused economies to become more integrated, there is a realisation among firms that these traditional ways of achieving competitive advantage now have only limited profitability. As a result, mergers and acquisitions have become an increasingly popular strategic choice for organisations (Nahavandi and Malekzadeh, 1988; McEntrie and Bentley, 1996; Zhu and Huang, 2007). Mergers are commonly characterised as the consolidation of two organisations into a single organisation. In contrast, acquisitions are characterised as the purchase of one organisation from another where the buyer or acquirer maintains the control of the organisation (Borys and Jemison, 1989; Zhu and Huang, 2007). According to Porter (1985), the primary reason for M&As is to achieve synergy by integrating two business units in a combination that will increase competitive advantage. As M&As are often seen as a means to acquire expertise, technology and products, to complement ongoing internal product development, to reduce exposure to risks and to achieve economies of scale (Lodorfos and Boateng, 2006; Zhu and Huang, 2007), the 9 / 78
Page 1 and 2: Achieving Successful Cross-Cultural
Page 7: Achieving Successful Cross-Cultural
Page 59 and 60:
Achieving Successful Cross-Cultural
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
show all

Achieving Successful Cross-Cultural and Management Integration ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?