Cross Cultural Management Group

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Cross Cultural Management Group Case Study Introduction This report will evaluate the situation that occurred between the telecom companies Telia (Sweden) and Telenor (Norway). The two countries had plans to merge to gain a competitive advantage in their region of North Europe and also to begin competing on an international level. The benefits of this merger at first look, outweigh any apparent problems or disadvantages, however as we will learn Culture plays a big role in our lives and that doesn’t by any means exclude the business world. Analysis Both these countries share many basic similarities in Culture as it has been traditionally defined. Their languages are similar they have the same preferences in risk avoidance, power distance, individualism and many other factors. Both countries are considered to have very feminine characteristics, which in previous theory would lead one to assume that Negotiations would be easier than if it were two masculine cultures or a mix of the two. We must now realize how important historical events when it comes to the forming of a culture, especially when it relates to bias and resentment held against another country. The not so distant history of the two countries and the ways they interacted in the past (big brother – little brother), were only mirrored throughout the whole negotiation process, whether intentional or unintentional. This is in our opinion the main cause for the falling out between the two companies. The fact that government factors were involved would have also intensified these feelings as both parties had to take into consideration the national position in this dealing. It is safe for us to state that Culture, and how cultures interact, can not only be look at by breaking down their preferences and tolerances. History and situations which have occurred between certain countries must also be considered strongly (more so when history between the two is recent). Let us take an example of the USA and Russia, they have had many conflicting ideas throughout history and are very different in the traditional context of culture, and their differences are only negatively affected by Wars fought (The Cold War). Sweden Throughout the history of the Nordic and Baltic region Sweden has been the super power,

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