Cross-cultural training NewsTata’s Acquisition of Jaguar & Land Rover – the Cultural Implications
Following Tata's purchase of Jaguar and Land Rover earlier this week Declan Mulkeen, Marketing Director at Communicaid, Europe's leading Culture and Communication Skills consultancy responds to the announcement and discusses the cultural and communication challenges which a cross-border acquisition of this type may produce and the steps that both Tata and Jaguar/Land Rover need to take in order to make this a successful Anglo-Indian story. The current trend towards international mergers, acquisitions and joint ventures is resulting in organisations not only having to deal with the merger of different corporate cultures, but also of two or more national cultures. 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.Jaguar and Land Rover, previously owned by US car manufacturer Ford for the last twenty years, will be very familiar with North American management and business practices so the change to Indian ownership will be an interesting challenge for management and production staff alike.With estimates suggesting that as many as 80% of international mergers and acquisitions fail, Tata will need to take extreme care and consideration to ensure that they fully understand the national and corporate cultures of the companies they have bought into. Key to their success will be the ability to maintain clear and open channels of communication with all Jaguar and Land Rover employees. Information is the lifeblood of any organisation and the way in which it is communicated can make the difference between a productive and committed workforce and one that is sceptical and unreceptive. Tata, Jaguar and Land Rover senior management teams must communicate accurate information transparently,...
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