Tata Jlr Deal - Free Essay Example

Cross-cultural training NewsTata’s Acquisition of Jaguar Land Rover – the Cultural Implications|      | Following Tatas purchase of Jaguar and Land Rover earlier this week Declan Mulkeen, Marketing Director at Communicaid, Europes leading Culture and Communication Skills consultancy responds to the announcement and discusses the cultural and communication challenges which a cross-border acquisition of this type may produce and the steps that both Tata and Jaguar/Land Rover need to take in order to make this a successful Anglo-Indian story. The current trend towards international mergers, acquisitions and joint ventures is resulting in organisations not only having to deal with the merger of different corporate cultures, but also of two or more national cultures. While Tata will be more familiar with British business culture following the recent acquisition of steel producer Corus, it will need to work hard to understand Jaguar and Land Rovers unique motoring heritage and business culture. Jaguar and Land Rover, previously owned by US car manufacturer Ford for the last twenty years, will be very familiar with North American management and business practices so the change to Indian ownership will be an interesting challenge for management and production staff alike. With estimates suggesting that as many as 80% of international mergers and acquisitions fail, Tata   will need to take extreme care and consideration to ensure that they fully understand the national and corporate cultures of the companies they have bought into. Key to their success will be the ability to maintain clear and open channels of communication with all Jaguar and Land Rover employees. Information is the lifeblood of any organisation and the way in which it is communicated can make the difference between a productive and committed workforce and one that is sceptical and unreceptive. Tata, Jaguar and Land Rover senior management teams must communicate accurate information transparently, explicitly and as quickly as possible. Information must then be cascaded down throughout the entire business in order to effectively convey the key messages to all parts of the business. While rapid and efficient communication should help to ease feelings of doubt and insecurity, managers should understand that employees need time to digest and understand the impact of the acquisition and gain a clearer understanding of the business objectives moving forward. All parties involved also need to recognise the importance of understanding the underlying values and attitudes of each culture. To put it simply, they need to understand the other cultures   perception of   how we do things: this will include differences in factors such as levels of formality, tolerance of risk and methods of decision making. Different perceptions of time may also be a particular challenge for Jaguar/Land Rover and Tata. Before business is even discussed, Indians will typically take much more time than Brits to meet the employees at all levels and develop relationships.. This could conflict with the approach taken by the Brits who often expect things to be done more quickly right from the start. In addition to understanding the cultural values of the other culture, Tata, Jaguar and Land Rover all need to be clear about each others corporate values and how the organisations will ensure that they are merged and applied to the new organisational culture they create. Jaguar, Land Rover and Tata should also take careful steps to ensure that the human element of the acquisition is not ignored. It is the employee who will have the greatest impact on the successful outcome of this acquisition. Carefully selecting respected leaders in the organisation to help carry out and communicate the necessary changes to other employees will help ensure they feel cared for. Without taking the time to fully understand the effect that a changing organisational culture can have on employees as well as the challenges of bringing together national cultures, companies are risking all. The Tata Group is a unique company dating back to 1868. It has often been seen to value its employees as much as it values profit and prides itself on equality and fair management which can only be seen as positive attributes for Jaguar and Land Rover. Mr. Tata has a passion for innovation with the most recent example being the launch of Indias own Volkswagen Peoples Car – the Nano costing just $2,500 which has opened up car ownership to millions of Indians, proving that Mr. Tata and his empire is out to make a difference. About Communicaid Communicaid is a culture and communication skills consultancy. We enable our clients to create profitable international relationships by building cultural bridges that enhance understanding and establish trust. Founded in 1992, our clients include many of the worlds leading international organisations such as Microsoft, BP, Pfizer, Deutsche Bank and GlaxoSmithKline, as well as government departments and international institutions including the UK Foreign and Commonwealth Office, the UK Ministry of Defence and the European Commission. With training centres in London, Paris, Frankfurt and New York, combined with a worldwide network of trainers, consultants and partner organisations, we are uniquely placed to meet your global culture and communication skills needs. |