Chapter 4 Flashcards
International M&A
One firm in one country acquires a firm in another country
Int. JV
Two or more companies in two or more countries create a company
Alliance
Two companies come together on a mutually rewarding agreement
What is an equity based international combination
A merger and acquisition or joint venture
What is a non-equity international combination
Two companies that come together and share profits responsibilities and resources based on a contractual relationship. Each operate as a separate legal entity. Examples would be the energy sector, And R&D.
Our international combinations successful
It’s reported that 50% of all international combinations fail within the first few years.
Reasons for acquisition or alliance
Industry consolidation Geography expansion New markets New technology Economies of scale
Name the 3 stages of combination
Pre combination
Combination planning and signing of agreement
Post combination and implementation
What is one of HRs primary roles during the implementation stage of a merger
Communication
Why do mergers and acquisitions fail
Incompatibility of people, culture and HR systems.
What is a common integration problem with M&As
Resistance to change
What is acculturation
Employees and organizations adapting and reacting to one another’s culture
With respect to acculturation what is a portfolio result
Both comps maintain separate identities
What is blending
The best of both cultures coming together to form a better culture
New creation
Develop a new culture that fits the new organization
