1. Alexander Consulting Enterprise 5/18/2015 International M&As and Cross Cultural Conflict

2. Alexander Consulting Enterprise 5/18/2015 Why Bother?

3. Alexander Consulting Enterprise 5/18/2015 -65% of International Mergers Fail -58% of all Mergers Fail -Unresolved Conflicts Decrease Motivation and Performance -Unresolved Conflicts Increase Frustration and Fluctuation Rates Why Bother? „Mergers fail because the people who do them are not really on top of the details of putting them together. It is like putting an engine on a car. If you don’t connect it right, the car is not going to move” Sanford Weill, Chairman of Citygroup

4. Alexander Consulting Enterprise 5/18/2015 „Mergers fail because the people who do them are not really on top of the details of putting them together. It is like putting an engine on a car. If you don’t connect it right, the car is not going to move” Sanford Weill, Chairman of Citygroup

5. Alexander Consulting Enterprise 5/18/2015 Integration and Potential for Conflict Potential For Conflict Synergy Effects Low High Integration

6. Alexander Consulting Enterprise 5/18/2015 1.Ethnocentric Approach 2.Relativistic Approach 3.Compromise Cross Cultural Conflict Resolution Each approach is unsystematic and does not necessarily lead to a desired outcome

7. Alexander Consulting Enterprise 5/18/2015 Conflict Resolution 1.Observe Difference / Conflict 2.Why are we doing the things the way we do? Why are the others doing the things the way they do? 3.Analyze Conflict I.Conflict of Interest II.Conflict of Factual Assessment III.Conflict of Goals IV.Value Conflict 4.Come up with Resolution depending on Type of Conflict and Specifics of Situation Role of Culture

8. Alexander Consulting Enterprise 5/18/2015 Conflict Resolution Specifics of Situation: - What is at stake? - How critical is time? - How important is it to have everybody on board?

9. Alexander Consulting Enterprise 5/18/2015 Conflict Resolution Types of Conflict Resolution: - Authoritative / Explanative - Compromise / Negotiate - Dialogue

10. Alexander Consulting Enterprise 5/18/2015 Conflict Resolution AD/CD/AA A/DD/CDA/C A/DCDA/C Importance of Conflict Resolution High Medium Low Type of Conflict Conflict of Interest Value Conflict Conflict of Goals Conflict of Factual Assessment A = Authoritative / Explanative C= Compromise / Negotiate D = Dialogue Nill, Alexander (1999). “Kommunikatives Konfliktmanagement in International Diversifizierten Unternehmen.” In: Die Zukunft der diversifizierten Unternehmung, eds. Hans Hinterhuber München: Franz Vahlen Verlag.