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Summary Activity 2.5.4 Answers
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Activity 2.5.4 Answers for IBM Textbook with ISBN 4
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ACTIVITY 2.5.4PORSCHE CULTURE CONTRIBUTES TO SUCCESS
Discuss the problems of adapting the corporate culture of a car
manufacturer when it is taken over by or merges with a foreign
car manufacturer.
Corporate culture can be defined as the beliefs and values shared within
the people of a company that acts as a guidance of interaction done both
internally and externally. In this context, the problems that might occur as
a result of merging two foreign car manufacturers is discussed.
Adapting the corporate culture of a car manufacturer after its mergence
might cause some problems to occur, which is cultural clash. With
different corporate cultures combined into one, one corporate culture will
eventually be more dominant than the other, which ultimately be
disadvantageous as employees who are used to a certain way of working,
will have to adapt within a short period of time. For instance, when an
employee from company A is used to working with constant guidance
from their managers, but is forced to adapt to company B’s corporate
culture, which may be more of an independent and free way of working,
employees of company A may struggle. This is because their beliefs and
habits are completely different, which could then delay the entire
development of the business as well as reducing the productivity.
The emergence of two companies from different countries with different
corporate culture can also delay the decision-making process and
postpone planned projects as it will take time to adjust the corporate
culture of the new merged company. This is because it will be impossible
for a company to implement two contrasting corporate culture. For
instance, according to the case study, Porsche’s philosophy is that clients
come first, whereas many US car manufacturers prioritizes the
shareholders of the company. If the two companies with different priorities
were to merge, some adjustment time will be needed to make changes so
as to focus on the decided priorities of the merged company. Therefore,
plenty of time will be wasted on adjusting to the new work style for both
managers and employees.
Another problem that might occur involves less motivated staff/employees
due to a sudden change in main objective of the company. This means
that each company tends to have their own objectives or goal, however,
when two companies merge together, there might also be objective
clashes. This could eventually unmotivate employees as they might not
agree with the main objective of the business. For instance, when a
business’ main objective is to increase profits, but had to change its
objective to increasing customer care, employees might disagree or be
less motivated. This is because it might result with the reduction in their
salaries as the amount of profit is not considered as important as it used
to.
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