Maintain Longterm International Relationship

Listen to this postBusiness should target long term  strategies to grow up the profit gradually while maintaining healthy profit and satisfying the stakeholders. Business should use the corporate social responsibility model to serve the community by meeting the national and international obligation and the ethical standards. Self regulation would be a good tool to meet the internal ethical standards and the local ethical responsibilities. The ethical issues and the ideas of being right or wrong are governed by the religious, cultural or professional value base believes as stated by O’Donohue and Nelson (2009). Around the world, organizations may set rouls and regulations to cover ethical issues but the individuals behavior and his background would limit his or her ethical behavior.

Grotenhuis (2009) state that 50% and up to 80% of the mergers and acquisitions fail to make the expected benefits. The main reasons for the failure is weak research of the target company and its context, unfocused strategic issues on the intended merger and acquisitions and finally the leadership and cultural issuers that lead to cultural clashes and fatal misunderstanding (Grotenhuis, 2009). Cultural differences should be studied in earlier stages of the merger or acquisition to expect the problematic areas and sort them out before they develop to culture clash that slow bonding of the two organizations. In a merger between Dutch and Japanese organization the Japanese felt that the Europeans are “person-oriented” that look for short-term profit while the Japanese are more group-oriented and always explore and target the long-term profit (Grotenhuis, 2009).



Grotenhuis, F. D. J. (2009). Mergers and acquisitions in Japan: Lessons from a Dutch-Japanese case study. [Article]. Global Business & Organizational Excellence, 28(3), 45-54. doi: 10.1002/joe.20258

O’Donohue, W., & Nelson, L. (2009). The Role of Ethical Values in an Expanded Psychological Contract. [Article]. Journal of Business Ethics, 90(2), 251-263. doi: 10.1007/s10551-009-0040-1

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The Strategic Fit

Can fit different sizes

The Strategic fit is thought to be the decisive factor during mergers and acquisition; however, Barkema & Schijven (2008) argues that strategic fit creates synergistic potential to integrate the acquired firm and this integration will enable the acquiring firm to realize the full benefit of the acquisition. Barkema & Schijven (2008) argue that firms start their acquisition by conducting a local search which results in a good integration but not the best.

Repeating the same acquisition process leads to ineffective organization that requires organizational restructuring to optimize its synergy with the acquired firms. “Acquisition experience enables an acquirer to learn to carry out its acquisitions more successfully from the start, thereby postponing the need for restructuring.” (Barkema & Schijven, 2008, p. 697).

Barkema, H., & Schijven, M. (2008). Toward unlocking the full potential of acquisitions: the role of organizational restructuring. Academy of Management Journal, 51(4), 696-722.

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