Assignment on Managing Across Organizational & Cultural Boundaries
Added on - 21 Apr 2020
Running head:MANAGING ACROSS ORGANIZATIONAL & CULTURAL BOUNDARIESManaging Across Organizational & Cultural BoundariesName of the Student:Name of the University:Author’s Note:
1MANAGING ACROSS ORGANIZATIONAL & CULTURAL BOUNDARIESQuestion 1Six main bases for collaborative advantageThe six main bases of collaborative advantage are access to resources, shared risk,efficiency, coordination and seamlessness, learning and the moral imperative. The organizationcollaborates to share resources when they can’t accomplish their objectives with individualresources, for instance, pharmaceutical companies which require resource for production andmarketing collaborate to share resources(Kozlenkova, Samaha and Palmatier 2014).Organizationcollaborates to share the risk of failure of a project, for instance R&D projects. Organizationscollaborate to gain efficiency in terms of outsourcing, operational efficiency, coordination andeconomies of scale, for example, public-private partnership (Bingham and O'leary 2014).Coordination and seamlessness is a part of efficiency of an organization, collaboration alsopromotes mutual learning of organizations. Most importantly, organizations collaborate on moralimperative to eradicate problems on national, society, industrial and organizational levels (Foss.and Knudsen 2013).Why BenQ initially wanted to join efforts with SiemensTaiwanese companies witnessed a shrink in profit margins for contract manufacturing. Inorder to achieve a profitable future, the Taiwanese companies wanted to move beyond low-costmanufacturing. Taiwanese companies wanted to build their individual brand names rather thanbeing a contract manufacturer who is almost anonymous in the marketplace. BenQ, theTaiwanese company wanted to acquire Siemens, the German company for its existing brandname which was attractive. BenQ also wanted to enhance its global presence by acquiring
2MANAGING ACROSS ORGANIZATIONAL & CULTURAL BOUNDARIESSiemens. The launch of the brand Ben-Q Siemens by acquisition of the mobile phone division ofSiemens which was losing money proved to be advantageous for BenQ. The merger helpedBenQ to become the fourth largest brand of mobile phones across the globe after Nokia,Samsung and Motorola. K.Y. Lee, the chairman of BenQ felt that he will be able to generateprofits from the debt-ridden unit of mobile phone of Siemens. Lee was of the opinion thatbecause of the global distribution and sales channel of BenQ it was easier for BenQ to achieveprofit easily. The manufacturing facilities and economies of scale of Ben Q would also increaseby choosing a complimentary partner like Siemens. BenQ initially wanted to join efforts withSiemens because the organization felt that this merger and acquisition will lead to a win-winsituation for both companies as more synergy and value in the marketplace will be created by theformation of the brand name BenQ-Siemens (Cheng. and Seeger 2011).Bases for collaborative advantage of the collaboration between BenQ and SiemensThe German company, Siemens was not directly paid by BenQ. The 100% stake ofmobile phone division of Siemens was acquired by BenQ. Initially an amount of 250 millionEuros was provided to BenQ by Siemens for funding the business, later 50 million Euros wasspent by Siemens to purchase shares of BenQ which were issued newly. Siemens also incurredthe loss of the unit, 1.5 million Euros loss per day. Siemens collaborated with BenQ to developtechnologies for handsets. The rights of co-branding was vested to BenQ- Siemens within atenure of 5 years and the right for the usage of the trademark of Siemens was gained by BenQfor a period of 18 months. BenQ wanted to fulfil the contract agreement of labour with the cellphone employees of Siemens. The share of Siemens was up by 3% and rose to 61.9 Eurosbecause of the transaction(Cheng. and Seeger 2011).