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Global Case Study Challenge

This case study examines the intercultural challenges faced in an international merger between a German company and companies from Romania and Bulgaria. Cultural differences between the countries are analyzed using the GLOBE framework dimensions and acculturation models. Germans value punctuality, hierarchy and directness while Romanians and Bulgarians place more emphasis on relationships and sharing of ideas. However, through exposure to each other's cultures, all parties gained a better understanding and were able to adapt practices to improve collaboration.

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Chiara Lupi
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197 views

Global Case Study Challenge

This case study examines the intercultural challenges faced in an international merger between a German company and companies from Romania and Bulgaria. Cultural differences between the countries are analyzed using the GLOBE framework dimensions and acculturation models. Germans value punctuality, hierarchy and directness while Romanians and Bulgarians place more emphasis on relationships and sharing of ideas. However, through exposure to each other's cultures, all parties gained a better understanding and were able to adapt practices to improve collaboration.

Uploaded by

Chiara Lupi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Group 41

Intercultural Challenges in Le Ha My – Japan


International Mergers and Bakir Peljto – Bosnia and Herzegovina
Acquisitions: A German-Bulgarian- David Günther Unterscheider – Austria
Romanian Case Study Chiara Lupi - Netherlands
Introduction

Framework
• Model of Acculturation
• GLOBE
Table of Analyzing the cultural differences
Content • between Germans and Bulgarians
• between Germans and Romanians
Conclusion

Solution
• Increasing competition,
globalization and connected
markets
• Companies need to grow
externally  M&A
• M&A consists of 3 main stages
• Pre-merger stage
• Transaction stage
• Post-merger stage (PMI)

• This case is about M&A of 3


companies:
• German company
• Romanian company
Introduction • Bulgarian company
Model of Acculturation

• Takes both perspectives into


account
• Acquired company
• Buyer

• Degree of acculturation
• Buyer perspective

Framework I
GLOBE - Global Leadership and
Organizational Behavior
Effectiveness program

• By Robert House in 1991


• To test generalizability of
charismatic leadership in 20
different cultures
• Major finding: leader
effectiveness is contextual

Framework II
GLOBE - Global Leadership and
Organizational Behavior
Effectiveness program

• Consists of 9 “cultural
dimensions”
1. Assertiveness
2. Future orientation
3. Humane orientation
4. Institutional collectivism
5. In-group collectivism
6. Performance orientation
7. Power distance
8. Uncertainty avoidance
9. Gender eligitarianism

Framework III
GLOBE - Global Leadership and
Organizational Behavior
Effectiveness program

• Concluded in 6 leadership
styles
1. the charismatic/value-based style
2. the team-oriented style
3. the participative style
4. the humane style
5. the self-protective style
6. the autonomous style

Framework IV
Different expectations

• “Pros”:
• eagerness to learn more about the
quality, punctuality and objectivity
and openness to discover the
German culture
• great role models from whom
Bulgarians can learn a lot started
from structured work and time plan
• “Cons”:
• misunderstanding of the way of
being and the differentiation
between the different members
among the hierarchy, Bulgarians
have been used to distinguished
people based on the different car
for example
Analyzing cultural differences • Germans are stiff and don’t know
what to talk about beside work-
between Germans and Bulgarians I related topics
Comparison of cultural
dimensions

Analyzing cultural differences


between Germans and Bulgarians II
Difference in leadership styles
• The humane style

Analyzing cultural differences


between Germans and Bulgarians III
What did they learn from each
other?

• Germans learned about


Bulgarians:
• Bulgarians are friendly and open
for ideas
• Bulgarians consider business
meetings a matter of formality
• Bulgarians are very direct
• Bulgarians learned about
Germans:
• For Germans, appointments are
mandatory
• Rank is very important in German
Analyzing cultural differences businesses
• Germans are competitive and
between Germans and Bulgarians IV ambitious
Different expectations

• “Pros”:
• positive and happy because they
consider German as people with
high quality standards and
organizations skills such as
punctuality and use of
• touchable role model, discuss
ideas together (big sharing)
• “Cons”:
• German are strange because they
want to know the employee's
opinion before deciding
• Germans behave strangely for
Analyzing cultural differences example at the beginning they
shared one office, the CEO as well
between Germans and Romanians I
Comparison of cultural
dimensions

Analyzing cultural differences


between Germans and Romanians II
Difference in leadership styles
• The self-protective style

Analyzing cultural differences


between Germans and Romanians III
What did they learn from each
other?
• Germans learned about
Romanians:
• Romanians are helpful, creative
and have a very good feeling for
group dynamics
• Romanians are showing high
levels of in-group collectivism
• Negotiating is the most important
part when doing business in
Romania and verbal informal
agreements are just as important
as formal ones
• Romanians learned about
Germans:
• Germans always want to hear
opinions before deciding  all
Analyzing cultural differences people contribute to making a
decision
between Germans and Romanians IV
• Presentations for Germans need to
be well prepared and structured
• Societal culture practices are
high scored
• Performance and value
competitiveness are rewarded
• More direct and confrontational
relationships

• Leadership styles are high in:


• charisma
• participative
• team-oriented

Conclusion I
Germany
• Same cluster
• Very similar business and
leadership styles
• High scores in societal cultural
practices, in-group collectivism
and power distance

• Leadership styles are high in:


• team orientation
• decisiveness

Conclusion II
Romania and Bulgaria
Type of acculturation expected
to be preferred by Germans,
Romanians, and Bulgarians:

• Bulgarians and Romanians are


very excited about the M&A.
However, they still want to
preserve their business culture
• Germans want Bulgarians and
Romanians to be more
interactive
• Germans want to bring new
processes

Solution Solution = Model of Integration


Thank you! Vielen Dank!
Bedankt!
Arigatō! Hvala ti!

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