A Good Faith Effort Is Needed

The acquisition of a Spanish company by an American one may be quite challenging in light of considerable cultural differences between the US and Spain. Nevertheless, the case of the Excelsior Manufacturing based in the US willing to acquire Quality Instrumentation based in Spain is not a complete failure a priori. Instead, the US-based company should just take into consideration existing cultural differences and assess adequately possible challenges, which they may confront, while entering Spanish market. The analysis of possible difficulties and challenges can help the US-based company to elaborate the effective strategy of the acquisition of Spanish company but still both companies should come prepared to work in the culturally diverse environment and adapt to collaborate with each other effectively.

Question 1

The expansion of the business to Spain may raise certain problems in face of the US company because Americans will deal with quite a different cultural environment. One of the major issues that the US-based company will face is the difference in the organizational structure since Spanish company is likely to be inclined to the hierarchical organizational structure, whereas the US-based company is accustomed to the egalitarian one. Therefore, American managers will have to adapt to the inclination of Spanish to quite rigid, hierarchical organizational structure.

Another possible challenge the US-based company may confront in Spain is the problem of the different cultural background of employees. If American managers are transferred to Spain they will have to learn how to work with their Spanish colleagues and employees. For instance, Spanish employees and organizations tend to the development of familial relations within organizations, while the US-based company tends to the development more formal, business-oriented relations within the organization.

Furthermore, Spanish employees have a strong inclination to the development of communal, humanistic values which they appreciate and apparently expect from the US-based company. This means that Spanish employees are likely to expect socially-responsible policies from the part of the US-based companies not only in relation to employees of the company in Spain but also in relation to the local community. However, the US-based companies and its managers are apparently not accustomed to such communal orientation of their company. They are more concerned with their business development and tend to pragmatic relations and policies in place.

Question 2

The cultural diversity is an important issue in the contemporary business environment. In this regard, the US-based company is in a different position compared to its target Spanish company. The US-based company is more accustomed to the cultural diversity compared to Spanish one. The difference between American and Spanish culture is obvious and the different attitude of managers and employees in Spain and the US to the cultural diversity originates from the difference of the American and Spanish culture and background of American and Spanish managers and employees. American managers and employees grew up in the culturally diverse environment. Naturally, they take the cultural diversity for granted and, therefore, they may face fewer difficulties, while adapting to the new cultural environment compared to Spanish managers and employees. Spanish managers and employees, in their turn, grew up in the culturally homogeneous environment because Spain is the country with predominantly Spanish population, i.e. the overwhelming majority of the population of the country is ethnic Spaniards. This is why Spanish managers and employees are accustomed rather homogeneous cultural environment than to the culturally diverse one. Therefore, they may face considerable problems while adapting to work in the multicultural environment as Americans will acquire their company and they will have to learn to work with American managers.

Furthermore, the cultural diversity may bring the sense of inferiority to Spanish employees, especially in case of American managers taking top positions and starting to manage their company. In such a situation, Spanish employees may feel being inferior to strangers, who American managers are for them. In such a situation, American managers will have to gain the respect and confidence of Spanish subordinates to persuade them that they still on the equal ground, regardless of substantial cultural differences between them.

Question 3

The US-based companies should focus on the individual success of each employee that will be welcomed by both American and Spanish employees and managers of the company. To put it more precisely, the company should offer the clear promotion scheme for employees working in the company after the acquisition. Employees and managers should understand what they should do to obtain promotion and how the promotion takes place. The promotion should be transparent and fair.

Furthermore, the organization should offer employees and managers of the Spanish outlet of the US-based company attractive compensation plans oriented on the development of the employees’ loyalty. The introduction of effective and fair compensation plans may stimulate employees of the company to improve their performance and stay within the company. For instance, if the company offers employees a compensation plans which offers higher pay offs to employees who work longer, employees will be interested in the further work in the company.

In addition, the company should focus on the elimination of cultural barriers and development of the positive interpersonal relations within the organization, especially between American managers and their Spanish colleagues and subordinates. American managers should stick to the democratic management style demonstrating their concerns about employees’ well-being. For instance, managers can try developing positive interpersonal relations with their subordinates maintaining regular communication and having personal meetings with their subordinates on the regular basis. They may also manage special events, where managers and employees of the company, both American and Spanish can communicate informally. For instance, the company can organize soccer or basketball match between professionals working within the organization, where teams will consist of both Americans and Spanish, who can play together that will enhance their interpersonal ties and open the way for the effective interpersonal communication between them.

Conclusion

Thus, the cultural diversity plays an important part in the contemporary business environment. If the US-based company attempts to enter Spanish market, they should come prepared to deal with quite a different cultural environment. In this regard, the major difficulties are likely to emerge because of the little experience of Spanish managers and employees to work in the culturally diverse environment. They may also face difficulties with the individualistic and egalitarian principles of the organizational structure and culture which are characteristics of the US-based company. In this regard, the US-based company should focus on the promotion of the individual success of employees, offering the clear options for career development, promotions and reliable social responsibility policies, including effective and attractive compensation plans. In addition, managers of the company will have to develop positive interpersonal relations with their colleagues and subordinates. If the US-based company follows these recommendations, they can complete the acquisition successfully.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: October 27, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: October 27, 2021]

freeessays.club (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: October 27, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: October 27, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: October 27, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: October 27, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: October 27, 2021]
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