What do you think the biggest challenge in terms o

What do you think the biggest challenge in terms of cross-cultural management will be in the merger of these two companies?

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Impact of Culture on International Business


The number one semiconductor company in the world Applied Materials recently merged with the world`s number three semiconductor company Tokyo Elecktron. The stock prices of both companies went up significantly after the merger was announced, which shows that investors welcome this move that may create synergies and help both companies battle declining revenues in the semiconductor industry. However, even though there are potential benefits to this merger in terms of operational synergies the human side of a merger can often be difficult. Furthermore, Japanese and American cultures are widely perceived as being extremely different from each other which may add to the difficulties in managing the human side of this merger. Case Assignment For this assignment, review the following two articles and do some of your own research on these two companies: (These are two sources that are given) McClatchy, S. (Sep 2013) Applied Materials to merge with Tokyo ElectronJohnson, Tribune News Service, Washington [Available on Proquest] Negishi, M. (Sep 2013) Deal-Shy Tokyo Electron Chief Pushed for Sale to Applied Materials; Tetsuro Higashi`s Decision Was Based on Experience Watching Japanese Peers Flounder, Wall Street Journal (Online), New York, N.Y [Available on Proquest] Then once you`ve finished researching these companies and reviewing some of the key concepts of cross-cultural management in the background materials, write a four to five page paper answering the following questions: 1. What do you think the biggest challenge in terms of cross-cultural management will be in the merger of these two companies? Remember to consider to issues of differences in national cultural values between Japan and the U.S. 2. What steps do you recommend be taken to help ease cultural differences between the two companies? Assignment Expectations Answer the assignment questions directly Stay focused on the precise assignment questions, don`t go off on tangents or devote a lot of space to general background materials List supporting references and cite sources in proper format Use appropriate writing style in essay form (organization, grammar, & spelling- see Writing Guidelines).

Impact of Culture on International BusinessName:Institution: Introduction The American and Japanese cultures are quite different and there are underlying social norms. To either of the parties, a simple gesture will mean a world of difference in the different cultural backgrounds. It is common to find that most of the Japanese people are reserved while the American culture tends to be more loud and straight to the point. For the Japanese, while the Americans are bent on making their views heard, the former may find it intrusive and too aggressive for comfort. In Japan, most of the human interactions are very subtle and this means that there is more respect for relationships and power than there is in America (Symonds, 2012). People living in the USA would have a hard time adjusting to the strict code of life that the Japanese are used to. Each of the cultures is unique in their own special ways and having the two works together can be quite a challenge. For the companies that are merging within these two cultures, there are benefits that will accrue from the merger especially in relation to the operations. At the same time, there are going to be challenges that will come from the conflict from the two cultures. The merger between Applied Materials; an American based company that deals with semiconductors and Tokyo Electro; a semiconductor company from Japan is one good example of the cross-cultural scenarios. While the operations department may have an easier time managing their resources due to the increased resource base, the human resources department will have a rough time trying to bridge the gap between the two cultures. In this case, cros...
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