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

There are approximately 2,000,000 saunas in Finland, a country with a total population around 5,500,000. That’s a sauna for every two to three individuals. It’s no wonder saunas are such a hot place for making connections and forming relationships. For a population that is fairly reserved in discussing personal topics in their normal business relationships, it is nice to have a place forblowing off steam and connect with those who typically hold a very professional demeaner.

After growing up in Washington state, graduating with a Master of Accountancy from Brigham Young University, and starting a career with one of the Big4 accounting firms in San Jose, an international career seemed distant for Jeff Jenkins. But it was always a dream of his to work globally. Here are some key points from his Cultural Conversations podcast, where he walks us through his journey to working abroad. Work for International Opportunity After starting with Deloitte in

In this episode, we talk with Jeff Jenkins, Senior Manager in National Office Accounting Consultations at Deloitte in their Finland office. Jeff shares his experiences and how he got to this point. He touches on work culture in Finland, and what the Finnish culture means for his family. Guest: Jeff Jenkins grew up in Spokane, Washington before his bachelor’s and master’s degrees in Accounting at BYU. He started with Deloitte in the Bay Area before taking on his current opport

Walking into someone’s office and telling them you want their job probably isn’t the best method for starting your dream career; but it certainly worked for Lora Cook. What began with a year-long foreign exchange program in Finland developed into a dream of working and serving at an international level. With that vision, Lora took the fastest route to graduate school and now has a master’s in organizational behavior and a Ph.D. in educational leadership and international prog

Overview: Have you ever wanted to go on a study abroad? How about directing one? Join us as Lora Cook takes us through her journey from a student interested in learning about the world to eventually a director of international experiences for students, educators, and professionals. Guest: Lora Cook holds a Ph.D. in educational leadership with an emphasis in research methodology and international program development and evaluation, and master’s degrees in international develop

. 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

Nokia provided financial reports using IFRS while Microsoft reported using US GAAP. Differences in national culture combined with different reporting requirements creates accounting and finance cultural differences. These differences can lead to financial reporting misunderstandings and possible valuation problems. Though there is little public information surrounding the rationale behind Microsoft’s valuation of Nokia, a consensus is that Microsoft paid too much for a com

The citizens of Finland were unhappy with the announced Microsoft-Nokia merger. The Finns had long felt national pride from Nokia’s success. Giving up control of this national company to a foreign entity was a blow to their identity. Microsoft did little to alleviate the Finns’ concerns. Public Acceptance Public Perception News and media critics (as well as citizens) in both the U.S. and Finland expressed dislike for Microsoft’s acquisition of Nokia’s mobile unit. From Micros

Management turnover during the period surrounding an acquisition is challenging, particularly when new leaders don’t share the same passion for the merger.  Leadership change created uncertainty for Nokia employees. Announced layoffs coupled with differences in leadership style created more suspicion and distrust of those leading the merged companies. Had Microsoft been sensitive and aware of differences in the way Nokia employees view and interact with management, many probl

Microsoft discovered that Finns’ views on work-life balance are different from those of Americans. Behavioral misunderstandings caused tension and friction between US and Finnish management teams and employees. Many problems could have been avoided had Microsoft embraced Nokia’s corporate and Finland’s national culture rather than expecting the Finns to adapt to their new owner’s native culture. Core Values Individualism vs. Collectivism. While both the United States and Finl

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