Variant 2

A UK company has recently merged with another company from a country of your choice other than the
UK). As Marketing Manager you have been asked to write a report on possible problems associated with
such a merger. In particular consider issues that might arise due to cultural management differences.
Very briefly outline initial ideas for overcoming the problems you identify.

When companies from different countries merge, they often encounter challenges related to cultural
differences, which can significantly impact the management and operations. Here are some potential
problems and initial strategies to overcome them:

Problems:

Communication Challenges: Varied communication styles, language barriers, and differences in

approaches to giving and receiving feedback can lead to misunderstandings and inefficiencies.

Different Work Cultures: Disparate work ethics, perceptions of hierarchy, decision-making processes,
and attitudes toward work-life balance can cause friction among employees.

Leadership and Management Styles: Variances in leadership approaches, decision-making authority, and
approaches to conflict resolution can lead to clashes between management teams.

Employee Morale and Engagement: Cultural differences might impact employee morale, loyalty, and
commitment to the new company due to uncertainty, fear of change, or feeling undervalued.

Strategies to Overcome:

Cultural Sensitivity Training: Conduct workshops and training sessions to increase cultural awareness
and foster mutual understanding among employees from both companies. This can help in bridging
communication gaps and understanding different work styles.

Establish Cross-Cultural Teams: Form teams comprising members from both companies to work on
projects together. This helps in promoting collaboration, understanding, and integration of diverse
perspectives.

Clear Communication Channels: Implement transparent communication strategies and platforms that
accommodate different languages and communication styles. Encourage open dialogue and provide
resources for language support.
Leadership Alignment: Ensure that leadership from both companies is aligned on the shared vision and
values. This can be achieved through leadership retreats, joint decision-making processes, and defining
a common management approach.

Employee Involvement and Feedback: Create channels for employees to voice their concerns, suggestions,
and feedback. Encourage an inclusive environment where employees feel valued and heard during the
transition.

Cultural Integration Plan: Develop a structured plan for the integration of cultures, highlighting
common values and creating a new shared company culture. This plan could involve social events,
cross-cultural mentorship programs, and recognition of diverse traditions and holidays.

2. In a free market economy, decisions and choices about resource I allocation are determined by:
A individuals
В the government
С combination of individuals and the government
D the money markets

3. A country that has a culture where there are wide status differences between subordinates and
managers would be said to have:
A low masculinity
B high individualism
C high long term orientation
D high power distance

4. Explain FOUR reasons why a UK insurance company may be concerned : about offshoring its
customer call centre to India

Cultural and Communication Differences: Language barriers and cultural nuances can lead to
miscommunications or misunderstandings between customers and call center agents. Differences in
accents, speech patterns, or cultural norms might make it challenging for UK customers to effectively
communicate or feel understood. This could potentially lead to customer dissatisfaction or frustration,
impacting the quality of service.

Data Security and Privacy Concerns: Offshoring to a different country involves transferring sensitive
customer data. A major concern would be ensuring that the offshore call center complies with data
protection laws and maintains high standards of data security. The UK company would need to ensure
that the offshore call center follows stringent protocols to safeguard customer information, as data
protection laws and enforcement might differ between countries.

Quality of Service and Training Standards: The level of training, expertise, and understanding of the
insurance products or services might differ between call centers. There could be concerns about the
quality of service provided by offshore agents. The UK company might worry about maintaining the
same standards of service and whether offshore agents are adequately trained to handle the specific
needs and intricacies of UK customers.

Customer Perception and Reputation Risk: Offshoring the call center could affect the perception of the
company among UK customers. Some customers may prefer or expect local customer service and might
perceive offshore call centers as less responsive or less knowledgeable about their needs. This
perception could potentially damage the company's reputation and customer trust, impacting customer
retention and loyalty.

5. Identify the benefits and drawbacks of matrix organisational structure. Which companies have such
type of structure. Illustrate with examples.

The matrix organizational structure blends elements of both functional and project-based
organizational structures. It aims to take advantage of the benefits of both while mitigating their
limitations. Here are the benefits and drawbacks of a matrix structure:

Benefits:

Enhanced Communication and Collaboration: Matrix structures encourage communication across

different departments or teams. This facilitates collaboration and the sharing of resources, expertise,
and knowledge, leading to innovative solutions and better decision-making.

Flexibility and Adaptability: It allows for flexibility in resource allocation. Employees can work across
different projects or departments, adapting to changing priorities and leveraging a broader skill set,
making the organization more versatile.

Specialization and Expertise: Employees can develop specialized skills within their functional areas while
also gaining diverse experience in various projects. This creates opportunities for professional growth
and cross-functional expertise.

Efficient Resource Utilization: By sharing resources across projects or functions, the organization can
optimize the use of available resources, thereby reducing redundancy and maximizing efficiency.

Drawbacks:

Power Struggles and Confusion in Reporting: Employees might face dual reporting structures, leading to
confusion about authority and responsibility. This can create power struggles and conflicts within the
organization.
Complexity and Slower Decision-Making: Matrix structures can be complex, leading to potential slow
decision-making processes. With multiple stakeholders involved, reaching a consensus might take
longer, impacting the organization's agility.

Potential for Role Ambiguity: Employees might face ambiguity regarding their roles and responsibilities
due to reporting to multiple managers or working on various projects. This can lead to stress and
inefficiency.

Increased Administrative Overhead: Managing a matrix structure requires additional administrative

overhead, including coordination, conflict resolution, and maintaining balance, which can add to
operational costs.

Companies with Matrix Structures:

NASA (National Aeronautics and Space Administration): NASA employs a matrix structure to manage its
various projects and missions. It combines functional departments (engineering, science,
administration) with project-based teams (e.g., Mars rover missions, space station projects) to
accomplish its goals.

Amazon: Amazon's structure can be considered a matrix due to its focus on functional areas (such as
retail, AWS, and devices) and cross-functional project teams (like new product development or
expansion into new markets).

Apple Inc.: Apple utilizes a matrix structure, allowing employees to work within functional departments
(design, engineering, marketing) and on specific product-based teams.