This had several consequences on TATA’s management style.Firstly, TATA, in contrast with Daimler, decided to leave the existing management structure intact and leave the national Secondly, TATA didn’t just leave the current managers on their own. Russians prefer blending into the crowd rather than separating themselves from it (Legler, Osborn and Whitehorn 2008:26).The second difference worth mentioning here is the decision making progress. Nomura, on the other hand would have another shot in fulfilling their dream of going global.
Throughout the partnership other “heavy-weights” decided to leave including Alexis de Rosnay (2008), Brian O’Connor (May 2009), Jane Wang (2010), Thomas Siegmund (March 2010), Colin Banfield (March 2010), Sigurbjorn “Siggi” Thorkelsson (March 2010), Adrian Mee (April 2010), Glenn H. Schiffman (March 2011), Rachid Bouzouba (March 2011), Philip Lynch (July 2012) and Tarun Jotwani (January 2012) .A combination of financial difficulties, which cast a dark shadow on Nomura’s ambitions, and mass defection of Lehmanites provides grounds to conclude that this partnership hasn’t yielded the anticipated dividends.
Lehman Brothers were prioritising short-term incomes over long-term relations (another example of long-term thinking vs. short-term thinking). The result was the Corus Group.The prospects for the venture were promising. Chrysler - Case Study 10414 Words | 42 Pages. two carmakers entered into negotiations over a possible merger in January 1998. This case may be taught singly or used as a merger-negotiation exercise with “Daimler-Benz A. G.: Negotiations between Daimler and Chrysler” (UVA-F-1241). Swiftly, BNP Paribas acquired secured footholds in Another indirect factor, which can be interpreted as success, was that both in 2011 and 2012 BNP Paribas Fortis became Bank of the Year. The inability to establish proper communication, build trust and recognise the goals of one’s counterpart played a significant role in the outcome of the cooperation.Moreover, just as in the DaimlerChrysler merger, a German company was imposing its own terms on their partners. Mainly this was caused by the realization that the agreed term “merger of the equals" was pretty far from reality. Daimler was a German company which could be described as “conservative, efficient and safe”, while Chrysler was known as “daring, diverse and creating” (Appelbaum, Roberts and Shapiro, 2009:44).If one looks closely, they will find numerous manifestations of these differences in the corporate cultures.Firstly, the attitude to hierarchy was quite different.
TATA managed to motivate them through constantly challenging them and working with them. After that, Nomura started generating profits. In the statement of BNP Paribas on the acquisition of Fortis it was stated: “This partnership culture, founded on openness to third parties and the pooling of best practices, is a veritable “trademark” of BNP…”. Let’s now try to compare the goals and the results.Estimated losses in 2008 and first quarter of 2009 were about ¥8,700 billion (Soon Young Choi, 2011: 33). This was the general idea while all the integration processes were performed accordingly .It is worth mentioning here, that in spite of the fact that all the employees are constantly encouraged to keep an open mind and to be sensitive to other cultures, BNP Paribas conducted a number of The results of the acquisition are impressive. Moreover, there were a couple of instances when female employees weren’t allowed to take part in a meeting because of “strict door policy”.Such stark cultural differences and a clear imposition of Nomura’s culture on ex-Lehman Brothers' employees had horrendous results. Look beyond stereotypes In January 1998, during his first brief meeting with Chrysler CEO Robert Eaton, Daimler-Benz CEO Jürgen Schrempp floated the possibility of a merger The enormous gap in corporate culture and values and the feeling of “suffocation” which eventually caused defections played its role in the downfall of once perspective venture.One such expansion was the acquisition of Fortis. As previously stated, there is no method to establish the extent of culture’s influence on success or failure, however in this case study, where the other culture was respected, trust was inspired and effective communication took place, certainly provides food for thought.The project had a lot of potential for both sides. Americans, on the other hand, are more inclined to risk taking and consider the thoroughness of their Russian counterparts redundant.Recognising these differences, which are very subtle, but extremely important and being aware of these differences helped this venture to become profitable for both parties.As we can see, the results were quite positive. Moreover, more than once in interviews the Managing Director stated that “it is TATA’s responsibility” to take care of JLR and that “TATA won’t shy away from investments, if it is required”. Apart from differences in corporate culture there was also an issue of trust.
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