Company acquisition occurs when a company buys more than 50% or the entire stock of another company to gain control over the acquired company. Company acquisition can either be violent or friendly, depending on the authorities and regulations. In most cases, company acquisition occurs in a horizontal manner, where another powerful company acquires two organizations with similar products and services merge or one company like the case of Vodafone and Mannesmann (Ailon 2008). The discussion below presents an analysis of the cricket wireless company and allied wireless company to show how the acquisition of either company would signify the success of the acquiring company. In the discussion, I have chosen my organization, cricket wireless to be company A and Allied Wireless to be company B. Additionally, throughout the work; I will outline the cultural dimensions for the success of both companies and organizational models that would work best for the companies.
The critical cultural dimensions that would make both Cricket Wireless and Allied wireless companies successful would primarily depend on the interaction among employees, working groups, and leaders. The cultural aspects that can work for cricket wireless include strict work discipline, goal-orientation, professionalism, employee work centered, and embracing an open system. To begin with, strict work discipline culture imposes control in the organization to make operations tight, formal, and propel innovation (Witte 2012). Secondly, a goal orientation culture provides platforms for getting work done and identifies which specific action needs to be done in a period. In a professional culture, the Cricket Wireless Company can identify itself with professionals to get work done accordingly. The work-centered culture focuses on high task performance at the expense of the employees (Hofstede 1991). Lastly, an open system culture allows newcomers to interact freely with other organizational groups, thus promising employee satisfaction.
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The dimensional cultures that would work best for allied wireless include a means-oriented culture, internal and external drive, easygoing work discipline, local culture, and employee-centered culture. The means oriented culture stipulates how work has to be done and how employees organize themselves to avoid the risks that may arise. Internal and external driven cultures make the employees feel like experts and act accordingly when responding to clients and customers (Jacobides 2007). The advantage behind this internal and external driven culture makes employees realize that a customer is always right (Höpner and Jackson 2006). An easygoing culture makes unpredictable achievements, thus propelling innovations. A local culture helps the employees to identify themselves with the teammates and bosses to enhance interactions. Finally, an employee-centered culture gives leaders responsibilities to provide happiness and satisfaction of their employees.
The two companies, Cricket Wireless, and Allied Wireless companies operate in equally same service provision, which is mobile broadband devices and wireless communication. Some of the advantages that the Cricket Wireless would enjoy, include larger economies of scale through increased output because it has control over the acquired company, Allied Wireless (Pettinger 2017). The main disadvantage that Cricket Wireless would encounter as the acquiring company is managing the employee morale and coping up with cultural diversities. The advantage that Allied Wireless would enjoy from being acquired is promoting the professional level of its products, bearing in mind that Cricket Wireless Company has experience from merging with AT&T and Aio wireless companies. The main disadvantage that Allied Wireless is prone to encounter is loss of control over the products and services.
The organizational model that I would recommend for Cricket Wireless Company is a functional model. The functional model incorporates supervision, management, and direction to group employees according to their skills and expertise (Pettinger 2017). The functional model incorporates the essence or market-based organizational model, which focuses on improving the means of managing competitions in the business world. The functional model works best for large companies with a high number of employees in defining hierarchies and the benefits that each party is entitled. In dealing with company B staff members, I would recommend to the senior management of Cricket Wireless Company to incorporate a matrix structure of leadership to ensure that the hierarchies are clearly defined to avoid collisions. In an agreement to merge or acquire the ownership of another company, the acquiring company promises to be loyal in case the acquiring was friendly.
The recommendations that I can provide to Cricket Wireless Company on dealing with cultural differences include measuring the cultural competence, identifying and measuring the inherent cultural baggage and embracing several communication methods (Lim, 2017). To begin with, understanding cultural competence means embracing the effectiveness of working with people who do not share the same beliefs and principles to instill success in the organization. Secondly, cultural competence requires one to identify the prevalent cultural baggage, which may include biasness, prejudices, and beliefs. Lastly, it is evident that different organizations use different communication styles depending on variations in culture, and therefore, I would recommend linear communication. According to Lim (2017), linear communication styles would deliver information directly to the point rather than providing meaningless stories revolving around the topic.
In conclusion, company acquisition may be violent or friendly according to the regulations regarding companies. Whether fierce or friendly, the acquiring company should acknowledge the cultural diversities of the acquired company to ensure effective customer relations as well as a benefit for every stakeholder. Some practices, such as internal and external drives are fundamental in enhancing perfect interaction among working groups and maintaining customer relations. The vital cultural dimensions that can work best for the acquiring company include strict work discipline, professionalism, and goal orientation, just to mention a few. The key cultural aspects that can work best for the acquired company include easygoing work discipline, local culture, and employee-centered cultures (Petrakis 2014). In general, appreciating cultural diversities is the overall aspect that both acquiring and acquired companies should embrace for success in the business environment.
References
Ailon G. (2008). “Mirror, mirror on the wall: Culture’s Consequencesin a value test of its own design.” The Academy of Management Review.
Hofstede G. (1991). “Cultures and organizations: software of the mind”. London: McGraw-Hill.
Höpner, M. and G. Jackson. (2006). “Revisiting the Mannesmann takeover: how markets for corporate control emerge” Management Review (2006) 3, 142–155.
Jacobides, M. G. (2007). “the Inherent Limits of Organizational Structure and the Unfulfilled Role of Hierarchy: Lessons from a Near War.” Organization Science.
Lim, M. (2017). “Examining the Literature on Organizational Structure and Success.” College Mirror.
Petrakis P.E. (2014). “Culture, Growth and Economic Policy”, New York and Heidelberg: Springer.
Pettinger T. (2017). “Pros and Cons of Mergers.” Economics.
Witte, Anne E. (2012). “Making the Case for Postnational Cultural Analysis of Organizations”, Journal of Management Inquiry.
