Problems of cross-border merger

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Problems of cross-border merger

Organizational issues

Many problems arise during the merger of international companies. In particular, legal, customs and logistics. And the main problem is how to organize all this. How to build new rules of interaction between companies operating in different regions with different distribution points?

3) Before the merger, company also need to find out the specifics of the work of the offices in different regions. In case it is production, find out about suppliers and distributors and sign contracts with them like a new company.

2) Before starting a merger, it is necessary to conduct a thorough check of international laws and local legislations. And conduct a merger in accordance with them.

1) First of all, it is necessary to define the new top managers structure as soon as possible so that the top managers take under their leadership the most important aspects of the company's life.

Disagreements in enterprise management

Conclusions about the merger of companies take shareholders or presidents of the company, but what about the management team? Managers, directors and other middle managers are responsible for how the work within the team will develop in the future. The merger of two companies can lead to disagreements among middle managers. The fact is that in different countries they can pay more for the same job. similarly in Asian countries, the working day ends earlier than in European countries and remaining after the end of the working day is an indicator that you are a bad worker it turns out that between managers and their subordinates from different countries there may be protests and strikes

3) To limit the interaction between employees from different companies, but this is the most inefficient way that will work only during the development of a new management policy.

2) To hold trainings among managers and recruit new staff.

1) To make a new company charter with fixed salaries for all employees, fixed work schedule and system of bonuses for over hours at work

Multicultural misunderstandings

There are a lot of complications during company's restructuring, but if we take cross-border merger - multicultural issue are the crucial one. Companies face such problem even inside one organization, where they have one strategy, philisophy and vision. And of course when two companies with different business approach become one, they not only argue about main concept according to the organizational questions, but in the first place base on their cultural differencies and nationanal principles. How can companies avoid it during merger? We have 3 measures for it:

3) To figure out what markets are adopted for what kind of mentality. It means that Japanese representatives of the company should concentrate on Japan, and european on France or Germany. Such synergy effect will make this multicultarl differencies company's strong quality.

2) To make an agreement througout the owners that they will work considering mutual business interests, which are does not depend on cultural or national differencies.

1) To organize strong teambuilding activities, where employes will have an opportunity not only to communicate with each other, but to unite with one idea blurring national differences.