Oil and Wasser
Case Analysis: Oil and Wasser
There are two major barriers that are leading to an inevitable failure in the Royal Biscuit and Edeling merger. The first, and most important, is the lack of cultural competency between Brighton and Wallach, the two merger officiators. Both parties are displaying characteristics of ethnocentrism and misperception. Second, is the lack of corporate competency resulting from dissimilar corporate cultures, histories and business strategies. If the merger of the two companies is to be successful then corporate synergy must be realized; otherwise the union is doomed to failure. In the case of the merger between Royal Biscuit and Edeling, there is clearly a lack of cultural competency between the two merger officiators, Brighton and Wallach. The body language described in the first paragraph demonstrates some of the major differences between the English and German cultures. Brighton and Callahan, both native Englishmen, are vocal, direct, and compulsive. Callahan throws a “tantrum” about the lack of collaboration on the leadership development plan that was assigned to the two men, and verbally expresses his frustrations in a compulsive manner making direct, glaring, eye contact with Brighton. However, their German counterpart, Wallach, does not make eye contact with or defend himself against Callahan as Brighton does. Instead he stares “stone-faced at the conference table” (Reimus, B., 2004, p. 1). It can be deduced from this initial scene that one of the major contentions between the two parties involves patience, compulsion and meticulousness. Brighton’s frustrations are derived from what he perceives as Wallach’s meticulousness for processes. When speaking to his colleague he goes as far as to engage in stereotyping and states that Wallach is “stubborn and incredibly process driven, and – well, just so German” (Reimus, B., 2004, p. 4). Moreover, Brighton negatively compares the German culture to that of his
There are two major barriers that are leading to an inevitable failure in the Royal Biscuit and Edeling merger. The first, and most important, is the lack of cultural competency between Brighton and Wallach, the two merger officiators. Both parties are displaying characteristics of ethnocentrism and misperception. Second, is the lack of corporate competency resulting from dissimilar corporate cultures, histories and business strategies. If the merger of the two companies is to be successful then corporate synergy must be realized; otherwise the union is doomed to failure. In the case of the merger between Royal Biscuit and Edeling, there is clearly a lack of cultural competency between the two merger officiators, Brighton and Wallach. The body language described in the first paragraph demonstrates some of the major differences between the English and German cultures. Brighton and Callahan, both native Englishmen, are vocal, direct, and compulsive. Callahan throws a “tantrum” about the lack of collaboration on the leadership development plan that was assigned to the two men, and verbally expresses his frustrations in a compulsive manner making direct, glaring, eye contact with Brighton. However, their German counterpart, Wallach, does not make eye contact with or defend himself against Callahan as Brighton does. Instead he stares “stone-faced at the conference table” (Reimus, B., 2004, p. 1). It can be deduced from this initial scene that one of the major contentions between the two parties involves patience, compulsion and meticulousness. Brighton’s frustrations are derived from what he perceives as Wallach’s meticulousness for processes. When speaking to his colleague he goes as far as to engage in stereotyping and states that Wallach is “stubborn and incredibly process driven, and – well, just so German” (Reimus, B., 2004, p. 4). Moreover, Brighton negatively compares the German culture to that of his
References: Adler, N.J. (2008). International Dimenstions of Organizational Behavior, Fifth Ed. South-Western: Mason, OH. Cohen, E. (N.D). Global Considerations for Corporate Universities. Reimus, B., (2004). HBR Case Study: Oil and Wasser