Cultural issues in tata corus acquisition

As a result, Japanese subordinates felt extremely reluctant to take orders from them Froese and Goeritz, We often damn a company when it makes a loss in a single year. Firstly, TATA, in contrast with Daimler, decided to leave the existing management structure intact and leave the national British managers.

We did not reach that point. We did not reach that point. Finally, TATA kept an open-mind and never hesitated to listen to feedback from subordinates. Such clear statements of loyalty contributed positively on the cooperation between the companies.

Cultural Differences in International Merger and Acquisitions

As for values, one example is in order. Cultural differences, rather then being a reactive after-thoughts, were addressed very early allowing for smoother integration and clearer communication between the parties. Another macro issue was that of trust.

Surely, even though Corus management stays, changes must be in the offing. In the auction for Corus Group, Tata displayed similar flamboyance by quoting a price as much as 34 per cent higher than what he had first quoted.

Cultural Differences in International Merger and Acquisitions

The merged entity, Tata-Corus, employed 84, people across 45 countries in the world. Steel was at the peak of its cycle and Tata Steel paid pence a share, a premium of 34 per cent to the original offer price to ward off a challenge from Brazilian miner and steelmaker CSN.

What about the management of the combined entity. One of the starkest differences lay in individualism. Firstly, TATA, in contrast with Daimler, decided to leave the existing management structure intact and leave the national British managers. Key players from Lehman Brothers could retain jobs and work in one of the biggest Asian financial companies.

Cultural factors First reason for the success of this merger is that BNP Paribas lay enormous emphasis on cross cultural awareness; it is even included in the policy of the company.

Financial impact of the merger The proof is in the pudding' as we like the say; and the pudding did not taste good. Investors came in and increased the price. Lehmanites were accustomed to a very aggressive, risk-taking and quick decision-making way of conducting business including a stress on team play.

The prospects for the venture were promising. After the acquisition, the top management team of Corus was retained as Tata Steel believed that a high degree of cultural compatibility existed between the two companies.

So to summarise the cultural factors in play here: Women were instructed how to wear their hair, what dress code they should adhere to, even how to serve tea!. Mar 31,  · Finally, inTata Steel bought Corus in a $12 billion deal, what was the biggest foreign acquisition by an Indian company till then.

a discussion of emerging trends in the global steel industry, post-acquisition issues facing Tata Steel (including financial and cross-cultural issues), and the impact of this particular transaction. While Tata will be more familiar with British business culture following the recent acquisition of steel producer Corus, it will need to work hard to understand Jaguar and Land Rover’s unique motoring heritage and business culture.

a discussion of emerging trends in the global steel industry, post-acquisition issues facing Tata Steel (including financial and cross-cultural issues), and the impact of this particular transaction. Both Tata Steel and Corus have work practices that are very similar and this cultural fit between Tata Steel and Corus is of fundamental importance to any post acquisition, integration process.

In an earlier acquisition of Tetley Tea, Tata’s previous UK acquisition, it had run into “some cultural and racial obstacles because of concerns that British employees would resent having managers from a former British colony” (Mahagan,2/1/07).

Cultural issues in tata corus acquisition
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