Globalization has prompted a brand new trend of cross-border acquisitions from the East to the West. Fueled by non traditional motivations, Asian firms are acquiring honored and well-established Western brands, technology, assets and knowledge, and through these acquisitions gaining access to developed markets and talent pools. Acquiring two high-end British superior loudspeaker businesses in 1992- Celestion International and KEF Audio -has enabled GPE to take advantage of these businesses' well recognized intellectual assets and R&D abilities. However, cross-border acquisitions for example these are complicated, requiring firms to take into consideration differing regulations, national cultures, political variables, worker mindsets and work cultures. The acquiring company has also had to deal with human resource issues in its acquisitions, including managing work distribution and encouraging workers' awareness of job security.
How can GPE boost innovative collaboration between its dispersed R&D sites and conquer the spaces between these locations? Was increase by acquisition of Western companies the greatest strategy for the growth of GPE? This case illustrates challenges and chances for global R&D and virtual collaboration across geographical and cultural spaces. This case also familiarize students with the unique challenges in acquisitions of Western firms by Eastern businesses, including human resources management and how the procedure for initiation and advanced thinking differs across states.
PUBLICATION DATE: August 27, 2009 PRODUCT #: HKU857-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
Related Case Solutions & Analyses:
Enron Corp.: Credit Sensitive Notes
RPG Enterprises–1995
Jim Sharpe: Extrusion Technology Inc. (B)
Entrepreneurial Family
Value-At-Risk
Gordon Cain and the Sterling Group (B)
Mead Corporation: Cost of Capital
salaUno: Eliminating Needless Blindness in Mexico
The High West Distillery
The Future of Iraq Project (B)
