On September 3, 2013, Microsoft announced that it would acquire Nokia’s mobile phone division for $7.2 billion. Through a series of missteps, many of them cultural mismanagement, Microsoft informed the public in May 2016, of its intention to write off most of the $7.2 billion it paid for Nokia and agreed to sell the mobile devices unit to HMD Global and Foxconn Technology for just $350 million. This series uses the Mergers and Acquisitions Synergies Framework to explore the c

An international business experience can take a variety of forms. In some cases, companies are well set up to guide employees through the transition. In other instances, individuals have to figure out logistics, such as work authorization and housing, on their own. Arranging all the pieces can be a lot to manage. And then there’s the role itself. What does it take to be successful? Mike Hoer has spent over 30 years living in and working in Asia, Africa, and Europe. In doing s

The COVID-19 pandemic and resulting public health initiatives gave organizations across the globe an ultimatum: operate remotely, or not at all. Local markets and the global economy felt the impact as businesses struggled to stay afloat amidst restrictions on in-person activities. In the wake of these circumstances, one thing became abundantly clear: the global workforce is capable of communicating at unprecedented levels. With professionals and their organizations aware of t

Profitability and productivity—two metrics that matter. As the global business and employment environment becomes increasingly competitive, it is essential that companies find ways to set their workforce apart. Organizations want to be productive, profitable, and innovative—but vague, ill-defined ideals are difficult to achieve when those executing them do not understand the specific roles they play and steps to take. The best way to ensure that companies and their employees

Statista labels Best Buy as “the world’s largest multi-channel consumer electronics retailer.” But in 2012, their performance was described as “unsatisfactory in a number of areas.” And with many investors worried that Best Buy would fail to compete with Amazon, their stock price dropped more than 50% from February to December. That same year, Hubert Joly was appointed CEO. With a strong strategic vision, Joly quickly introduced a five-step strategy to bring Best Buy back to

Blockbuster’s CEO, John Antioco, will always be known as the man who laughed. After much persistence, Netflix founders, Reed Hastings and Marc Randolph,finally sat down with Antioco to make their pitch—buy Netflix for 50 million dollars. In this partnership, Netflix would run the Blockbuster brand online, while Blockbuster would promote Netflix’s mail-in subscription service instore. Antioco laughed. Blockbuster dominated the video rental industry. With 9,000 retail locations

On two separate occasions, Ben Cook found himself being chased by wild African animals. One ended with an amused gorilla watching the group run away; the other ended with a massive elephant pounding the tree Cook had climbed in to hide, then walking off. Experiences like this, and experiences with human conflict, often stem from a misunderstanding. The animals likely felt threatened by something they were unfamiliar with and acted on a natural tendency to defend themselves an

This episode is all about managing relationships. Join us as we take on two more “Culture Map” scales: Leading and Trusting. #levelsofauthority #hierarchical #lead #cognitivetrust #workingwithdifferentcultures #workingwithmulticulturalteams #Communication #taskbasedcultures #Japan #BosniaandHerzegovina #friendship #cultivatingrelationships #classroom #Behavior #powerdistance #understand #culturalnorms #affectivetrust #interculturalrelationships #CostaRica #decentralization #I

The Mergers and Acquisition Synergies Framework we developed includes measures from research on national culture by Geert Hofstede, Erin Meyer, and Sidney Gray. We used their data to show how cultural factors in cross-border mergers and acquisition can lead to success or failure. Our research is limited to national culture factors, yet as seen in a few instances above, corporate culture can be different from national culture. These differences can cause culture clashes of the

HP had little experience managing software and found the software business unfamiliar. HP ultimately made the decision to let Autonomy function as an independent unit. Consequently, effective communication between the two companies was not developed. Information Availability One indicator that HP’s acquisition of Autonomy would not yield the anticipated results is communication, or lack thereof, between the two companies. A key takeaway from Why Deals Fail: And How to Rescue

Shortly after Hewlett-Packard appointed Leo Apotheker to lead the company, the board approved the acquisition of the UK-based software company, Autonomy. Hewlett-Packard, well known for its computer hardware, thought the synergies it could have with Autonomy coupled with its brand recognition would give it a strong presence in the software market. This series explores management’s cultural misstep using the Mergers and Acquisitions Synergies Framework to examine how this acqu

. The research conducted in this paper is based upon the Mergers & Acquisitions Synergies Framework, developed by combining outside findings by Geert Hofstede, Erin Meyer, and Sidney Gray. It is limited to national culture factors, which play a different role in business than organizational culture. Further studies may need to be conducted to help distinguish differences between national and organizational cultures. In reality, Microsoft’s acquisition of Nokia was doomed to f

Meet Veasna Neang, a Cambodian educated in the United States, who developed his career in Cambodia, Vietnam, Laos, and Myanmar. He tells us why a student would rather unzip his own pants than tell a teacher his fly is open and why doing business efficiently in Asia always includes significant time socializing. #Conversation #Environment #Learning #Communication #International #Cambodia #Culture #Management #Business

Language differences impede communication. But communication issues arise from much more than just having employees who speak different languages. Microsoft discovered that not spending enough time to understand and adapt to differences in communication styles, mannerisms, and culture made bringing Nokia under its corporate umbrella difficult. Information Availability Openness Before being acquired by Microsoft, Nokia struggled to maintain open communication. According to sev

Lenovo has yet to resolve all its cultural issues. As one global director said, “Until now, I think… [cultural integration] has not been completed…there still remain many cultural problems…I think this part is the most difficult one for the whole acquisition.”1This is an important reminder that the cultural integration process is measured in years, not months. Regardless, Lenovo truly is an example of a successful cross-border M&A and is regarded as such in academic literatur

The relatively unknown Chinese computer manufacturer, Lenovo, set its sights high: acquire the legendary IBM PC division. Though there were many who thought this merger would fail, it became one of the most successful Chinese acquisitions in history. This series uses the Mergers and Acquisitions Synergies Framework to explore the careful way Lenovo managed cultural integration with IBM to become a world leader in computer sales. Introduction Chinese merger and acquisition tra

Mergers and acquisitions are complicated by nature and, as shown, this is especially true with cross-border transactions where culture affects the areas of communication, behavior, management, environment, and accounting and finance. Cultural differences are not impossible to manage, rather, they require an awareness that they do exist and a willingness to set aside preconceived notions in order to find compromises and solutions as needed. Mapping Mergers & Acquisitions Polar

Clear communication between merging companies is critical to M&A success. Communication extends far beyond agreements and meetings with top-level management. Communication involves planning and determining effective ways to help all levels of employees learn about and understand the changes taking place. One main goal of effective and clear communication is to reduce uncertainty. Information Availability Openness. Openness refers to the transparency of communication from both

Companies pursue mergers and acquisitions (M&A) in hopes of realizing synergies from the successful combination of two or more business organizations. Synergies are the advantages resulting from M&A that make the combined organizations more effective than the sum of their separate parts. Typically, synergy refers to measurable financial results—for instance, higher profits or lower costs—in the combined whole company post M&A than the individual companies achieved independent