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Executive summary

Using three important external communication sources including Qualtrics' annual reports, quarterly
reports, and press office releases, this report examines the company's significant purchase by Silver Lake
and CPP Investments on June 28, 2023. In highlighting Qualtrics' strategic emphasis, accomplishments,
and partnerships, especially in the United States, the report illustrates the company's rapid expansion in
the industry in only a single year. Moreover, it provides a thorough summary of Qualtrics' post-
acquisition trajectory by discussing financial ramifications, market successes, and its growing global
partnership. Using the findings, the report examines the internal effects of the event and evaluates how
it has affected Qualtrics' stakeholder interactions and organisational structures using organisational
theory. Additionally, the report expands to cross-cultural dimensions by drawing on ideas from
Hofstede's dimensions to examine how culture affects organisational and communication dynamics in
the United States, Mexico, and Canada. Ultimately, the results provide a nuanced perspective on the
post-acquisition scenario of Qualtrics, highlighting the complex interactions between organisational
dynamics and cultural influences in an international setting.

Introduction

In the dynamic landscape of global business, organizational events such as mergers and acquisitions play
a pivotal role in shaping the trajectory of companies. The Silver Lake acquisition of Qualtrics on June 28,
2023 with the deal value at $12.5 billion (Qualtrics, 2023h) was a major development in the corporate
world, especially in the technology and investment sectors. The German multinational software business
SAP (2023) was the initial owner of Qualtrics, a well-known experience management company. In a
calculated move, the US-based global technology investment business Silver Lake Capital (2023) joined
forces with the Canada Pension Plan Investment Board (2023) (CPP Investments), to start the Qualtrics
purchase. The partnership's overarching strategic goal was to help Qualtrics enter its next stage of
growth at scale by utilising Silver Lake's extensive knowledge of the industry and vision for experience
management (XM). Firstly, this report starts with an overview of the company’s significant event within
the last year using three main external communication channels such as press releases, quarterly
reports, and yearly reports. Secondly, the report provides a thorough analysis of both internal and
external ramifications of the acquisition. The final section analyses the cultural effects in various regions,
including the United States, Mexico, and Canada regarding the event’s influences. Through the use of
principles from Cross-Cultural Management, the report uncovers the subtle dynamics of communication
and organisation that are impacted by cultural differences.

1. Impactful Events on Qualtrics in the Last Year across Three Countries

Following its acquisition, Qualtrics experienced an extensive organisational reorganisation throughout

the previous year, which had an extensive impact on its operations in the US, Mexico, and Canada. With
the financial support and worldwide reach of Silver Lake and CPP of $12.5 billion (Qualtrics 2023h), this
event gave Qualtrics the ability to continue innovating and growing. Additionally, Qualtrics hit major
benchmarks in the US in August, being named a leader in the IDC MarketScape Worldwide Employee
Experience 2023 Vendor Ranking (Qualtrics 2023g). Together with the 2020 Forrester Research award,
this validation confirms Qualtrics' position as the platform of choice for businesses looking to improve
customer and employee experiences. Likewise, Qualtrics's impact in the US healthcare industry has been
reinforced by its partnership with Epic, a pioneer in health IT, to include patient experience data in
healthcare. Furthermore, Qualtrics' post-acquisition accomplishments go beyond collaborations; they
also reflect its commitment to technical advancement. In July 2023, Qualtrics announced XM/os2
(Qualtrics 2023f), the next version of its platform that is completely integrated with AI. This release
demonstrates the company's commitment to being at the centre of technology, developing a better
knowledge of workforce dynamics, and improving the entire experience of employees.

In November 2023, the corporation established a centre in Mexico City (Qualtrics 2023d), further
highlighting its strategic focus on Latin America, with a special emphasis on Mexico. Through this
project, Qualtrics not only establishes itself as an important player in the Mexican market but also
demonstrates its awareness of the particular dynamics and needs of the Latin American business
environment. This highlights Qualtrics' flexibility and agility in customising its solutions to meet the
needs of a wide range of international markets.

The acquisition strengthened Qualtrics' (n.d.) partnership with Leger, which had been in place since the
company's founding and which had positioned it as the first Canadian-owned partner in Canada. In the
meantime, Qualtrics also developed significant partnerships that reinforced its resolve to enhance the
nation's employee and consumer experiences. In specific, the October 2023 partnership with WorkJam
(Qualtrics 2023a) intended to improve frontline employees' experiences because of their significant
influence on customer interactions. This partnership offered customised solutions for the Canadian
market by combining the global customer relationship management platform of Qualtrics with the
strategic consulting knowledge of Leger.

Along with its strategic goals and achievements, Qualtrics has grown its market presence dramatically in
the last year, which has strengthened its standing as a major player in the experience management
industry. The significant rise in the number of organisations using its platform is indicative of the
expansion. Indeed, by November, 2023, about 20,000 organisations were using Qualtrics, up from over
18,750 in January 2023 (Qualtrics 2023c; Qualtrics 2023d). This noteworthy spike in only a single year
demonstrates Qualtrics' value to companies in a variety of industries and geographical areas, indicating
an increasing client base that might result in new sources of income for Qualtrics.

Financially, Qualtrics (2023b) continued its profitable trend in the Q1 of FY2023 after its acquisition,
bringing in $409.8 million in sales overall, a strong 22% rise from the previous year. According to its
report, the subscription income for the same time was $339.8 million, a notable 21% increase over the
prior year (Qualtrics 2023b). Improvements in operating loss, which decreased from $(290.5) million to
$(253.8) million annually, highlight the favourable financial development significantly. In comparison to
the Q1 of FY2022 (Qualtrics 2023c), the net loss showed improvement as well, coming in at $(259.0)
million instead of $(292.3) million. Overall, the company's effective post-acquisition transition is
highlighted by these positive financial outcomes and strategic business accomplishments of Qualtrics,
which position the business for long-term growth and technological advancement as an independent
organisation.
 2. Organizational theory: Examining Internal and External Implications

3.1 Internally

From the standpoint of organisational theory, Qualtrics' internal operations will be impacted in a
number of ways by Silver Lake and CPP Investments' acquisition of the company, as well as by further
investments from Accel, BDT & MSD Partners, and DFO Management. First off, Qualtrics' ownership
structure changed from being a publicly listed firm to a privately held one, indicating a release from the
immediate demands of the public markets and greater freedom to make strategic decisions. Due to their
lack of immediate pressure from quarterly profits expectations, private organisations are frequently
more flexible when making strategic decisions (Browaeys, 2008). As a result, this shift may result in
changes to the decision-making processes.

Second, throughout changes, organisational stability depends on leadership continuity (Groves et al.,
2015). With Zig Serafin continuing in his role as CEO, Qualtrics highlights the continuity of its leadership.
This shows a dedication to upholding the business's strategic direction and making use of the leadership
experience already in place. This lessens employee uncertainty while maintaining organisational culture
and strategic goal.

Two prominent themes in the organisational discourse are innovation and strategic alignment (Thomas
and Peterson 2014). Qualtrics, as well as the investors, have said that their goal as the next corporate
cloud software platform is to propel development and innovation that defines a new category. This
indicates how flexible the company is to shifting market conditions and how dedicated it is to satisfying
evolving client demands.

According to Qualtrics (2023), investors including Silver Lake, CPP Investments, Accel, BDT & MSD
Partners, and DFO Management have provided financial and operational assistance, indicating that their
viewpoint is resource-dependent. Qualtrics' competitive position and skills may be strengthened by
these investors, who provide not just financial resources but also operational knowledge.

Qualtrics's withdrawal from the public market may provide integration problems, and the purchase may
need its operations to be aligned with the strategic goals of the new owners. According to Moran et al.
(2014), effectively managing these problems requires managing opposition, integrating cultures, and
coordinating organisational structures. Navigating these transitions successfully requires the use of
effective change management methods. Organisational theory's subtlety is demonstrated by the way
Qualtrics' corporate brand changed as a result of changing its trading status. The company's vision,
values, and objectives may need to be reevaluated in light of this development. To do this, strategic
communication would be needed to support a healthy company culture and match employee views of
motivation and commitment.

Ultimately, staff involvement and communication strategies become crucial with such organisational
changes (Cole et al., 2011). Communication theory emphasises how important it is to communicate in a
clear and transparent way during times of transition to ensure that workers understand the company's
vision and feel invested in the transition process, especially with its global workforce. Employee
participation in the transition process lowers resistance and fosters a positive work environment.

3.2 Externally

Meanwhile, the acquisition triggers a variety of external dynamics that require careful examination. By
introducing new participants, the ownership transfer alters the power dynamics in Qualtrics' external
environment. Stakeholder connections may evolve as a result of the company's strategic decisions,
which will be influenced and changed by its investors (Ye et al., 2023), especially Silver Lake and CPP
Investments. One example of how authority is distributed and how present leadership is in line with the
objectives of the new investors is the leadership restructuring that keeps CEO Zig Serafin in place. The
external network of interactions is a crucial element of organisational theory that emphasises the need
for effective stakeholder management.

Qualtrics faces competition from a reshaped experience management (XM) software industry. After a
large cash infusion, the organisation needs to strategically reposition itself to maintain its dominant
position. One illustration of this is the commitment to encouraging category-defining innovation and
development, which highlights the flexibility required to thrive in a changing competitive environment.

From the perspective of institutional theory (Thomas and Peterson 2014), Qualtrics has to modify to
meet the requirements and standards of the investment and private equity industries. The company
should comprehend and operate by the standards, beliefs, and expectations of its new shareholders and
directors. This is making sure that its actions and procedures follow the institutional logics that
is common in the investment and private equity sectors.

The significance of viewing the organization's external environment via a multinational lens is
highlighted by the global aspect of the event, which includes foreign investors and the ongoing
development of Qualtrics' activities internationally. Organisational theory continues to emphasise the
importance of the effects on different marketplaces, legal frameworks, and cultural settings. Maintaining
success over time requires managing the variety of external factors and customising organisational
procedures to local conditions.

Furthermore, the event leads to Qualtrics' standing and credibility in the sector to shift. The
past credibility and performance of the organization's new financiers may have an impact on its public
image and status in the market. The business needs to take an active role in managing its standing in the
eyes of collaborators, consumers, and the industry overall, according to institutional theory. Similarly,
since Qualtrics is now reliant on both the financial and strategic assets given by its new investors,
resource dependency theory is applicable. That is, important factors include controlling external
dependencies, negotiating favourable conditions, and utilising the experience of Silver Lake, CPP
Investments, and others becomes significant. For example, equity investments and debt financing that
are involved implies the intricate network of resource requirements that Qualtrics needs to carefully
manage to support its competitiveness and expansion.

3. Culture Clash in Corporate Acquisitions: U.S, Mexico and Canada

 4.1 Organizational Perspective

Operating in the United States, Canada, and Mexico in the post-acquisition context would require
navigating the complex cultural differences in each nation. By utilising ideas from Cross-Cultural
Management, Qualtrics can utilise Hofstede's cultural aspects (Appendix ) as a framework for organising
initiatives. Considering egalitarian institutions and participatory decision-making are more preferred in
the cultures of the United States and Canada, which have lower Power Distance Index (PDI) ratings (40
and 39, respectively), Qualtrics may highlight these aspects of these nations. Individualistic principles
would motivate the organisation to acknowledge and promote each employee's accomplishments
to promote a sense of independence and personal development. A preference for equality is shown in
the participative nature of decision-making. For example, managers in both nations value team
competence and encourage a collaborative work atmosphere. With scores of 60 in the United States and
72 in Canada (Hofstede Insights 2024), individualism is prevalent. The trend towards independence
transfers into cultures inside organisations that value autonomy and self-determination. On the other
hand, Canada could take a more neutral approach because of its slightly higher focus on relationships.

Mexico, on the other hand, appears to favour hierarchical systems, as shown by their higher PDI (81)
(Hofstede Insights 2024). Furthermore, Mexico's collectivist orientation (34) places an important priority
on group loyalty, which affects relationships at work and organisational decision-making. Qualtrics may
need to set up distinct hierarchies where choices are made at the top of the chain. Adopting a
management approach that recognises and values loyalty, group cohesiveness, and clear guidelines
to create a work atmosphere that feels family is in line with Mexican cultural norms.

Although there are some minor distinctions, the United States (62) and Canada (52) (Hofstede Insights
2024) have a similar orientation towards individual accomplishment when it comes to the desire
towards accomplishing goals. Because of its independent culture, the United States tends to celebrate
achievement more overtly, whereas Canada keeps a more neutral attitude. Mexico scored 69, which is
indicative of a determined and goal-oriented culture. In Mexican organisations, conflict resolution
techniques are influenced by the values of confidence, fairness, and competition.

As reported by Hofstede Insights (2024), the United States (46) and Canada (48) both have lower levels
of uncertainty avoidance, which encourages tolerance for different viewpoints and willingness to
innovate. Conversely, Mexico's high score of 82 on the uncertainty avoidance scale indicates a tendency
for stability, aversion to abrupt shifts, and firm compliance to protocols. Meanwhile, both the United
States (68) and Canada (68) have indulgent cultures that place lower value on leisure, balanced work
and life, and individual freedom. Mexico, which scored 97, emphasises worker happiness and leisure
time significantly more.

4.2 Communication Perspective

From a communication standpoint, knowing High-Context and Low-Context communication styles is

essential to adopting ideas from Cross-Cultural Management. Transparent and straightforward
conversation is favoured in Low-Context communication, which is generally followed in the United
States and Canada. To ensure that information is expressed clearly, Qualtrics may continue to have open
and honest lines of communication that match its current corporate culture.

However, Mexico has a High-Context approach to communication, in which non-verbal clues and
unspoken signals are quite important. It may be necessary for Qualtrics to emphasise the value of
forming interpersonal relationships and observing nonverbal cues during meetings and conversations.
Employees' comprehension of these communication patterns may be improved by including cultural
intelligence education, which promotes productive cross-cultural cooperation.

Qualtrics could use techniques from Cross-Cultural Management, such as diversity training, mentoring
programmes, and multicultural teams in post-acquisition cooperation to foster cultural awareness. In its
extended operational landscape, Qualtrics can effectively manage the complexities of organisational and
interpersonal relationships by recognising the strengths of each cultural component and cultivating an
inclusive culture.

4. Conclusion

In summary, the analysis of the purchase of Qualtrics on June 28, 2023, and its following year-long
transit demonstrates a complex picture of organisational development and cross-cultural processes. The
growth of its market share, the financial results, and the partnerships with several additional partners
highlights a successful post-acquisition phase. Most importantly, Hofstede's dimensions of culture allow
us to understand subtle differences in communication patterns and organisational behaviour among the
United States, Mexico, and Canada. Cultural complications have a considerable impact on Qualtrics'
internal operations and external communications. These influences range from individualistic
dispositions in the U.S. to hierarchical systems in Mexico and Canada. How Qualtrics functions and
interacts with its users is further explained by variables including power distance, individuality,
uncertainty avoidance, accomplishment incentive, and indulgence. This study improves our
comprehension of Qualtrics' reaction to the purchase and offers a useful manual for managing the
complex interactions between organisational theory and cross-cultural management in the context of an
international corporate environment.

References