Globalization has led to remarkable changes in the way we conduct the world’s business. International Mergers and acquisitions are en vogue today. The advantages quoted by managers include advantages of scale, increased shareholder value, access to new markets, lower overheads and so on. The number of international mergers and acquisitions between German and American companies increased a lot during the last years, as well.
At the beginning there are high hopes and elation connected with the deal. But the long-term reality, however, is much the opposite. At least 50 percent of all international mergers and acquisition activity fails, no matter how the success is measured.
There are also lots of companies who failed, who are therefore not able to benefit from some positive synergy effects like cost reductions. Why did that happen?
A survey tried to analyze the reasons for this. The surprising result was that just 30% of the failures were attributed to the “hard factors” of business, like planning, finance or technology. For the rest, the reason lay in the so-called “soft factors”, which contain cultural and organizational behaviour.
Somewhat less acknowledged, although hardly disputed, is the positive and negative impact of cultural aspects on the success of M&A activity.
The following work reveals the differences between American and German business culture and also analyzes its historical and social background. Thereby, the main goal is to disprove that American and German business styles are almost similar.
Furthermore, at the end the reader should know more about the existing differences between the two nations, because their unawareness leads to the failures of M&A.
In the second chapter there is theoretical basis information which helps to reach a better understanding of this work. Thereafter comes the main part about the existing differences between Germans and Americans. Because there are plenty of them, it is just possible to take a brief view on a certain field of life. For this reason the author picks a few, those which seem to be the most relevant differences between the German and American business world. In every part, the author is going to illustrate the differences by means of examples . The main question which is answered in this work is: WHY do these different characteristics exist? Where do they come from?
Table of Contents
- INTRODUCTION
- NECESSITY OF INTERCULTURAL UNDERSTANDINGS
- WHAT IS CULTURE?
- THEORETICAL CONSTRUCTS OF CULTURE
- Hofstedes Dimensions of Culture
- Halls Model of Cultures
- DIFFERENCES IN AMERICAN AND GERMAN BUSINESS CULTURES
- DIFFERENT WAYS OF SAYING
- HOFSTEDES MOST SIGNIFICANT DIFFERENCES
- Individuality versus Collectivism
- Uncertainty Avoidance
- Motivation
- FURTHER DIFFERENCES
- CONCLUDING REMARKS
Objectives and Key Themes
This work explores the differences between American and German business culture, analyzing their historical and social background. Its primary goal is to debunk the misconception that American and German business styles are similar. By highlighting the existing differences, the work aims to raise awareness of the potential pitfalls of ignoring these cultural nuances in mergers and acquisitions (M&A) between German and American companies.
- The significance of cultural differences in the success of international M&A activities.
- The impact of cultural aspects on business communication and decision-making processes.
- The "trap of similarity" - a common mistake in U.S.-German business relations due to perceived cultural similarities.
- The importance of intercultural understanding in achieving successful international business collaborations.
- The historical and social factors that have shaped the distinct business cultures of the United States and Germany.
Chapter Summaries
- Introduction: The introduction highlights the growing importance of international M&A activity and the high failure rate of such ventures. It argues that a significant portion of these failures is due to cultural and organizational differences, often underestimated by business leaders. The work aims to provide a comprehensive analysis of the differences between American and German business cultures, emphasizing their importance in achieving successful cross-cultural collaborations.
- Necessity of Intercultural Understandings: This chapter examines the crucial role of intercultural understanding in international business transactions. It explores the "trap of similarity," a common misconception that American and German cultures are very similar, despite significant underlying differences. The chapter emphasizes the need for awareness of these differences to prevent misunderstandings and potential pitfalls in business dealings.
Keywords
The key terms and concepts explored in this work include: intercultural communication, business culture, mergers and acquisitions (M&A), Hofstede's cultural dimensions, Hall's model of cultures, cultural differences, globalization, American business culture, German business culture, and the "trap of similarity."
- Quote paper
- Ulrike Ditzel (Author), 2006, Cultural Differences in Business Life. Understanding German and American Business Culture, Munich, GRIN Verlag, https://www.grin.com/document/62926
