Merger Implementation Paper
Chinese and United State’s Culture
Art of Negotiation Presentation
Cassandra Simmons
Professor Raj Parikh
CUL-623-2230
5/14/2016
What we are going to cover
Comparison and contrast of Chinese and United States negotiation style
Core values and communication
Strategies to facilitate successful negotiations
Merger
Merger
Mergers are important because when well implemented, they make a business stronger
America’s General Electronics’ appliance business can merge with Chinese Qingdao-based Haier.
For the merger to be successful, communication, core values, negotiation style and norms should be considered.
Mergers are important because when well implemented, they make a business stronger. It is important to ensure that the organizations merging communicate well to understand each other’s culture.
America’s General Electronics’ appliance business can merge with Chinese Qingdao-based Haier.
For the merger to be successful, communication, core values, negotiation style and norms should be considered. The organizations must communicate; understand each other’s core values and norms. Also, it is of great importance to know what is valued by each party.
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American Norms vs. Chinese Norms
While Americans love individualism, the Chinese people value collectivism
Americans are for equality while Chinese respect hierarchical differences and age as well as wisdom
While Chinese value loyalty to the family, the Americans are individualistic.
While Americans love individualism, the Chinese people value collectivism. It is important to note that the Americans love taking responsibility of the operations.
Americans are for equality while Chinese respect hierarchical differences and age as well as wisdom (Andrews.edu, 2016). Respecting hierarchy is a very important value to the Chinese. Also, with age comes wisdom. This is why the Chinese value and respect age a lot.
While Chinese value loyalty to the family, the Americans are individualistic.
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American Norms vs. Chinese Norms
While Americans love individualism, the Chinese people value collectivism
Americans are for equality while Chinese respect hierarchical differences and age as well as wisdom
While Chinese value loyalty to the family, the Americans are individualistic.
Americans are materialistic
The Americans also are into science and technology
The Americans also believe in change
They have strong work ethics.
Being idle is a threat- leisure comes after hardwork.
While Americans love individualism, the Chinese people value collectivism. Chinese do not like taking responsibility as opposed to the Americans.
Americans are for equality while Chinese respect hierarchical differences and age as well as wisdom (Andrews.edu., 2016). While Chinese value loyalty to the family, the Americans are individualistic.
Americans are materialistic
The Americans also are into science and technology
The Americans also believe in change
They have strong work ethics.
Being idle is threat. Americans take leisure to be a reward after working hard
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American Norms vs. Chinese Norms
Americans are aggressive and competitive.
They love moving from place to place
Believe in philanthropy
They emphasize on getting things done
On the other hand, the Chinese:
Are loyal to their families
Value collectivism
Respect age and wisdom
Respect hierarchical differences
There are different approaches to business and operations between the Americans and the Chinese.
Americans are aggressive and competitive but the Chinese are slow. Chinese like the slow approach to business with the growing of relationship being top of their career.
Americans love moving from place to place.
Believe in philanthropy
They emphasize on getting things done
On the other hand, the Chinese:
Are loyal to their families
Value collectivism
Respect age and wisdom
Respect hierarchical differences
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Communication
While Chinese want to build a strong relationship with the people they do business with, Americans value the business first then the relations.
Americans are tough and dominant. However, Chinese value a less aggressive approach
The Chinese think of the aggressive approach as unprofessional
While Chinese want to build a strong relationship with the people they do business with, Americans value the business first then the relations. It is not that the Americans do not value strong relationships but business deals come first.
Americans are tough and dominant. However, Chinese value a less aggressive approach. The Chinese dislike the aggressive approach terming it unprofessional
While the Americans value individualistic approach, Chinese are family oriented. They are loyal to their families
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Communication
Americans might take a potential client out to dinner to discuss business,
However, Chinese business people take entertaining as an independent goal.
Nodding is a greeting by chinese
Chinese dislike being touched by strangers
Spitting is unacceptable in China
Americans exchange compliments frequently
Americans value sense of humor
Americans might take a potential client out to dinner to discuss business. This is a common thing among the Americans. However, Chinese business people take entertaining as an independent goal. They are slow in their process when compared to the Americans
Nodding is taken as a greeting by the Chinese while the Americans may take it to mean another thing.
Chinese dislike being touched by strangers. This may not be the case among Americans
Spitting is unacceptable in China and one can be fined for the offense.
Americans exchange compliments frequently.
Americans value sense of humor
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Facilitation of Merger
There are various very important merger issues including:
Communication
Top down and bottom up focus
Time
Durability
And identity
There are various very important merger issues including:
Communication
Through communication, the stakeholders of the two organizations can learn more about the differences in their cultures.
Top down and bottom up focus: the flow of information plays an important role in the development of an organization.
Time: time plays an important role in the process of integration. While it might take some time for the merger to be successful, it is worth it.
Duality: both the organization’s should make sure that they understand each other’s culture
And identity: changing the identity of the organization to suit the new organizational requirements
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Facilitation of Merger
Collaboration of both parties to understand each other’s culture and come up with an integration strategy
Involvement and engagement
Shared vision
Analyzing
Action
Implementation
Maintenance
Renewal
Integrated organization
Collaboration of both parties to understand each other’s culture and come up with an integration strategy. Both parties should come together and understand each other’s culture before initiating the merger
Involvement and engagement: every stakeholder should visualize the future identity of the merged organization.
Shared vision: All people from both the organizations should have a shared vision on how the organization will grow.
Analyzing: with regard to the strategy, the current situation of the two organizations should be evaluated.
Action: this involve creation of ownership
Implementation: the operations of the organization start improving
Maintenance: this involves the direction of the energy towards new corporate identity
Renewal: reevaluating and recreation of the company’s identity
Integrated organization: thinking of the future of the new company together
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References
Andrews.edu. (2016). U S Values. Retrieved from https://www.andrews.edu/~tidwell/bsad560/USValues.html
Business.uni.edu. (2016). United States. Retrieved from http://business.uni.edu/buscomm/internationalbuscomm/world/northamerica/unitedstates/unitedstates.html
Iveybusinessjournal.com. (2016). SEVEN STEPS TO MERGER EXCELLENCE •. Retrieved from http://iveybusinessjournal.com/publication/seven-steps-to-merger-excellence/
Li, Y. (2016). Cross-Cultural Communication within American and Chinese Colleagues in Multinational Organizations. Docs.rwu.edu. Retrieved from http://docs.rwu.edu/cgi/viewcontent.cgi?article=1015&context=nyscaproceedings
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