Internal Expansion and Cross Culture Challenges

This research focuses on the challenges experienced by IT firms during internal expansion and cross-cultural mergers and acquisitions. It explores the impact of these challenges on the performance of IT organizations.

Internal Expansion and Cross Culture
challenges

INTRODUCTION
Background of Research
Internal expansion is process of developing business by proper use of the resources with
business and not including any kind of the outside related activities in order to solicit the new
consumers. It is related to growth on investment as result of the internally generated the
appreciation on assets. Organization many expand its consumer base through means given
through the present consumers. The internal expansion is helpful in expanding the business and
enhancing the organizational performance. Cross culture is defined as differences between the
people of various nations, ethnicities and backgrounds. In the business, an effort of company
assures that individuals interact in an effective manner with the professionals from various
backgrounds. Merger and acquisition have increased due to drastic changes that taking place in
global business environment. Merger and acquisition are the transactions under which ownership
of the organization and operating units are mainly transferred with the other firms. To enhance
the market share, the offering of the products and also enter in to the new markets, IT firms see
the merger and acquisitions as preferred growth opportunities. Some of the organizations fail to
be oversee in diligence process are cross cultural and socio cultural differences which many form
the challenges in merger & acquisition in successful manner.
The IT firms can make better case for how infrastructure of IT can be contribute to value
related to the merger and acquisitions at each stage. The business executive requires view IT
infrastructure with similar context as other strategic, generating aspects of firms. In addition to
this, they can undermine rationale as well as expected business returns from merger and
acquisition. In managing the integration process M&A, several IT firms face challenges,
particularly when their business is not well-trained acquirer. IT departments are frequently left
out of early stages of agreement but eventually put together rapidly and effectively in order to
balance the various facets of two diverse IT firms. Most today's companies are heavily dependent
on information systems that coordinate transactions, conduct transactions and sales throughout
emerging digital world. However, an avoidance of disruption and a greater profit is also a result
of many businesses' M&A strategy. As indicator of the M&A success, firms use the revenue or

corporate profits. However, an acquisition value does not only have a shorter-term perspective of
increasing income or cutting costs immediately. In several ways, long-term value can occur.
Rationale of Research
It is a wider area of academic research that allows a learner to explore its idea and
knowledge within a given research, based on analyzing the challenges experienced by IT firms
when opting for mergers and acquisitions and also impact on the performance level of the IT
organizations. The main aim of this research is therefore to provide details on challenges
experienced by IT firms when opting for mergers and acquisitions, so it has been called the most
significant area in business context because this research demonstrates an in-depth assessment of
aspect of specific subject area and how it impacts business activities.
The other factor behind this work is the researcher’s personal interest in improving own
experience and skill in the field to promote personal and professional abilities. Cross cultural is,
however a wide range that helps learner in career, providing knowledge about the challenges
related to cross culture in M&A and how this impact on performance level of IT firms. In context
to it, for IT businesses cross culture impact on the M&A and this also affect on the performance
of organizations. This study is therefore also useful for those who pursue their own personal
development within same group. However, this research is helpful for individuals in trying to
achieve their future projects more effectively in a similar area.
Research Aim
The research as a whole is based primarily on research aim. As a convincing study that
helps a specialist in research outcomes, this is considered to be the first. Aim is an expression in
which for the method of brief or clear declaration the issue related to the examination is
recognized. This examination allows the researcher to obtain the desired outcomes correctly in
the entire investigation.
The main aim of this research understands challenges that experienced through the IT
organizations when they are opting for the mergers and acquisitions. Present research helps in
improve understanding of impact of those challenges on the IT companies. This investigation
aims to understand the impact of those challenges on performance of IT firms.

Research Objectives
 To identify and discuss the Internal Expansion, a Cross Culture challenge affects the
M&A in the IT industry.
 To identify and discuss the impact of challenges on the performance of firms.
Research Questions
 What is the internal expansion and the challenges of cross culture impacts M&A in IT
sector?
 How the cross cultural challenges impact on the organisational performance?
Structure of Dissertation
The research is a paper published in support of an author who presents findings and
analysis. Dissertation structure provides guidance on the systematic conduct of a research. The
basic components like title page, introduction or literature review should be included in the
academic structure. They all provide improved guidance for systematic research follow-up of all
research steps. The following cites numerous components used in the research structure:
Introduction: This chapter defines the basics of a research. Basic concept of a research is
specified and the layout is summarized in a brief manner. It must be clear, attractive and relevant
to the field of research everything considered in the introduction. This includes the research
goals and objectives providing detailed information. The first element will be similar to the
paragraph that easily leads to much of the study.
Literature Review: It examines current literature on thesis subjects and also explains why
the research is original in the nature. It is a compulsory part of an in-depth research study. This
research section uses secondary sources, such as reviews, articles and books to collect data and
information. These all the source information is trustworthy within a shorter period. However,
the analysis is intended to resolve the gap in literature collection and lists the sources relevant to
current research.
Research Methodology: The investigator uses authentic sources to gather data in this
section. In order to achieve positive results within a specific period of time, various tools and
techniques are necessary. Research methodology consists of various sections, such as research

philosophy, research design, approaches, methods of data collection, sampling etc. All of these
are useful for better data collection and analysis.
Findings: This section is related to the findings on the chosen research area. It is based
on the qualitative method and provides the detailed investigation.
Discussion: This chapter is focus on the review of literature. Data were collected from
secondary sources in this context. This gives literature review section with efficiency that helps
achieve positive results in research. The key goal is to clarify and describe the meaning of the
results. After taking the findings into account, it describes understanding regarding the problem.
Conclusion and Recommendations: It responds concisely to key research issues and
gives learners a clearly understood central argument. Conclusion summarizes the points made in
an argument and also provides a summary of the main areas of discussion. This gives the overall
study summary. The result interprets research findings. Recommendations follow on conclusion
and views which are informed by study findings.
Reflection and alternative research methodology: This is the last section of a thesis
which defines the benefits and disadvantages of a researcher’s behavior. In this section,
researcher explains about the experience while conducting an investigation. The investigators
here present the alternative technique of study that can be used.

LITERATURE REVIEW
In particular, literature review is recognized as a critical study of the general sources
published on this specific subject that allows readers to understand the specific subject in their
essence. This chapter also allows readers to decide the basic premise of the entire project, which
allows them in best way to draw meaningful results. This section presents information to
investigator including various authors and authors.
This is effective section of research as there are a variety of secondary sources that give
the researcher with detailed information on core subject on improve an understanding of the
challenges experienced by IT firms when opting for mergers and acquisitions and the cultural
challenges faced by companies related to M&A. The involvement of the secondary sources like
books , articles, news websites and some other publications, which are very important for
researchers and can be said to support them in obtaining valuable research results in line with the
main needs of the subject. In relation to this study, this section has been forged into sub-sections
that are highly based on research issues. The investigator’s focus is on incorporating different
perceptions by authors and writers, which in turn effectively contribute to present study, in order
to increase core importance of these sections.
To identify and discuss the Internal Expansion, a Cross Culture challenge affects the M&A in the
IT industry
As per opinion of Smriti Chand (2020) business expansion is related to raising market
share, profit and enhances sales revenue of existing services and products. Businesses are mainly
expanded by product development, expanding product line and the market development. In
internal expansion, firm is enabling to enhance the operations of business without the outside
activities. Internal expansion is a process of developing an enterprise by using resources in the
enterprise and not using any external activity to attract new customers. Through the same way,
the company can also extend its customer base through suggestions given through existing
customers. Expansion leads to greater resource use and productivity. To organically expand, a
company needs to retain enough income to allow it to buy new assets, like new technologies.
Business expansion offers economics for large scale operations. Over time, total value of a

company’s assets will rise, providing collateral to finance further expansion. Merger and
acquisitions have grown into a worldwide phenomenon with popular market expansion as
investigated for the growth and development of companies through many researchers of choice.
Improve the role of companies in handling cultural gaps in merge and/or market acquisitions
(M&A's) have become growing means to improve and retain. It is considered to be the quick and
efficient procurement process. Cultural management incompetence results in losses to several
businesses in foreign ventures. This is more clear in our view that, because of cultural
differences, the statistics of over the three-quarters of the cross-border failure of acquisitions and
alliances. This is therefore important to carefully consider the cultural aspect in the context of
trans-border M&A, alliances and undertakings. Intercultural management is solving problems
arising from cultural diversity and to prevent them.
On the basis of Sylvain Saurel (2019) for places where company has little qualified
experts, the smartest acquisitions remained closely associated with the core search sector of
company. Google's Android purchase in 2005 for just $50 million is a good example. "The
development of mobile telephone operating systems was not a natural strength, but investigation
provides both content and the background of application on and off phone. Android now
operates on more than 70 percent of global smart phones. Google has intelligence to integrate all
of its Android tools perfectly. Initially, Google permitted use of services and software to be
enforced by the policy. Many Android Smartphone operators require Google Play Store, Google
Maps, Gmail and YouTube. Google allowed it to enforce its law on Smartphone producers in
Android. In fact, even though Android is open source, it does not make much of value accessible
to end user if the popular services of Google Play are not.
According to viewpoint of Marsha Lewis (2020) Cross culture recognizes dissimilarities
between entrepreneurs from various countries and significance of bridging them and ethnicities.
Cross-cultural education has become crucial for businesses with globalization. The expansion of
global business, technologies and the rise Internet has made cross-cultural communication
critically valuable for companies. This style of communication requires an understand Business
environment that brings various values, viewpoints, and business practice to participants from
various countries. It also calls for additional preparation and assistance from workers. The way
of interacting, communicating and knowing world is around people from various cultures.

Consolidation of companies has been one of the most popular ways of expanding businesses.
This is one of most important options for the external corporate growth. Companies prefer
external development under favorable conditions. Awareness of the importance of the mergers
and acquisitions has been enhanced in mature industry like information technology. This is
because of the challenge of overcoming market share of rivals in these industries. Despite a
growing awareness of the importance of consolidation, no consolidated model supports the
challenges. Merger or acquisition of other organizations' assets can provide the newly formed
corporation with numerous tangible benefits. Nonetheless, M&As can be difficult as well.
Sometimes these issues reflect on the contradictions among two distinct cultures – corporate and
domestic. It identified senior managers' failure to bridge different cultures and how even the
most carefully planned fusions and acquisitions were undermined. This argument is reinforced
by a related report that confirms that cultural problems make up over 30% of failed M&As.
When decision is made for a merger or acquisition of another enterprise, organizations develop
strategies and set financial objectives. However the goals that describe successful cultural M&A
are rarely considered.
As per view point of Richard Harroch (2018) vital to recognize is a way to integrate the
two corporate cultures in order to achieve successful M&A. It is necessary to evaluate potential
cultural problems with a measurable objective and to build a way to cultural integration. Cross-
border mergers and acquisitions are also the source of several cultural differences around
corporate culture but national culture, which affects the company's culture, based on the country
of evolution. Intercultural management is therefore necessary to manage the different cultures
within company and to achieve better objectives by merger or acquisition. Process of managing
the cultural differences in a company can be defined as an intercultural management. The
absence of integration after consolidation was recognized as main challenge to efficiency impact.
It is therefore essential to enhance communication and knowledge sharing in effort to expand
chances of success. This integration leads to the synergy that drives M&A’s success. The ability
to obtain and communicate nuanced knowledge and understanding is driving the impetus of
M&A in technology companies. The integration of knowledge that makes integration
complicated is a problem for organizations. IT businesses can not enjoy the benefits of M&A
because of this difficulty. As there is Google acquired the Android and it move made for Google
in order to compete in market that owned through Microsoft with the Apple iPhone and

Windows Mobile. It deal is successful acquisition. Android is one of the popular mobile
operating system and this has changed the mobile computing. The Google mainly acquired back
for $50 million and this is better purchases the Google have made ever. Comprehension of the
intercultural differences and these issues can be resolved helps increase acquisition performance.
Following this merger, the biggest obstacle was the ethnic tension. IT businesses are struggling
to achieve success with holistic changes experienced after mergers and acquirements and lack of
integrated the decision-making. Unique, unsure and imitative are the main contributors to
industry's success.