Analyzing Internal Expansion and Cross Culture Challenges in IT M&A

This dissertation investigates the challenges of internal expansion and cross-cultural impacts on mergers and acquisitions (M&A) within the IT industry. It begins by outlining the research background, rationale, aim, and objectives, followed by a literature review that examines the impact of cross-cultural challenges on organizational performance. The research methodology section details the methods used for collecting and analyzing secondary data. Findings and discussions are presented based on the literature review. The dissertation concludes with recommendations and a summary of the research, highlighting the achievement of the research aims and objectives. The study uses secondary sources to explore how internal expansion and cross-cultural differences can affect the success of IT M&A, addressing key questions about their impact on organizational performance and providing insights for IT firms navigating these challenges. Desklib provides access to this and other solved assignments.

Internal Expansion and Cross Culture
challenges
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Abstract
Main purpose of preparing this dissertation is to identify and discuss the Internal
Expansion, a Cross Culture challenge affects the M&A in the IT industry. It is a main purpose
and in order to accomplish this purpose, number of activities was done by researcher in
systematic manner. With the help of introduction activity, researcher has been analyzed research
gap and developed aim and objectives. Literature review is another activity that was done by
using number of secondary sources which are magazines, articles, books, publication study etc.
These are main sources that were supported researcher in gathering of secondary information
effectively. Literature review is essential part because it supported researcher in fulfillment of
research gap through research questions. Research methodology is another part that was
completed by researcher by describing methods, philosophies etc. for collecting and analyzing
secondary information. Findings and discussion have been done by discussing secondary
information collected for literature review. Conclusion and recommendations are main part that
supported investigator in attainment of research aim and objectives. This section supported
investigator by explaining entire data about the each activity in short manner. Therefore aims and
objectives of the dissertation has been achieved by investigator.
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Contents
Abstract............................................................................................................................................2
CHAPTER 1: INTRODUCTION....................................................................................................4
Background of Research .............................................................................................................4
Rationale of Research..................................................................................................................5
Research Aim...............................................................................................................................5
Research Objectives.....................................................................................................................5
Research Questions......................................................................................................................6
Structure of Dissertation..............................................................................................................6
CHAPTER 2: LITERATURE REVIEW.........................................................................................8
What is the internal expansion and the challenges of cross culture impacts M&A in IT sector?
......................................................................................................................................................8
How the cross cultural challenges impact on the organisational performance?........................11
CHAPTER 3: RESEARCH METHODOLOGY ..........................................................................13
Chapter 4: Findings........................................................................................................................17
Chapter 5: Discussion....................................................................................................................20
Chapter 6: Conclusion and Recommendations..............................................................................29
REFERENCES .............................................................................................................................33
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CHAPTER 1: 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.
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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.
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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
(Luning, 2020). 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 (Rogers, 2018).
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
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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
(Tracy, 2019).
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.
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CHAPTER 2: 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 (Maas, Heugens, and Reus, 2019). 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.
What is the internal expansion and the challenges of cross culture impacts M&A in IT sector?
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 (Wang, Schweizer, and Michaelis, 2020). 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
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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 (Anthony 2019). 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
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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 (Zhang, 2020). 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 (Hägg, 2020). 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
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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.
How the cross cultural challenges impact on the organisational performance?
From the views of Tracy, (2019), Culture in the investigation of worldwide relations might be
characterized as the sharing as well as transmission of the awareness of managing various
national limits, and the social methodology as a point of view that gives specific consideration to
this wonder. Culture is the statement of human qualities. this is extremely cognizant because the
workmanship articles and exhibitions or strict practice. this can be inescapable and generally
oblivious, in the customs of food, the utilization of time or family festivities. It grasps the limits
of this range and everything between. Culture is all that we don't need to do to endure – however
are constrained to do to feel human. Culture or development, taken in its wide ethnographic
sense, is that perplexing entire which incorporates information, conviction, craftsmanship, ethics,
law, custom, and some other capacities and propensities gained by man as a citizen.
As per the opinions of Merkin, (2017) Culture is defined as the way by which society manages to
share the opinions and ways in effective manner. Contingent upon the locale they live in, the
climatic conditions they flourish in and their recorded legacy, they structure a lot of qualities and
convictions. This arrangement of their standards of life shapes their way of life. No culture has a
place with a person (Parente, and et.al, 2020). Ages figure out how to follow these goals and
standards. Culture spreads through ages, which embrace their old traditions and customs as a
piece of their way of life. The goals they base their lives on is a piece of their way of life. Social
qualities are granted starting with one age then onto the next, subsequently bringing about a
ceaseless of conventions that are a piece of culture. The language, the writing and the works of
art go across ages. Culture is found out, comprehended and embraced by the more youthful ages
of society (Ossorio, 2020). It is somewhat shared among numerous individuals of a specific piece
of the world. It has a place with a solitary network and not to any single person. Culture is found
out. The individuals from a culture share certain standards, which shape their lives. A slow alter
is characteristic to nearly each culture. Societies are subject to alter. Culture loses a few of its
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characteristics and picks up modern ones. The perspectives of culture that alter change over
social orders. With the entry of time, modern innovations develop, unused modes of work come
up, social considering experiences moves and so does culture. Each culture changes in time in
spite of the fact that the rate of alter of each culture shifts. Thinks about have brought out a truth
that no culture can stay in separation. There's barely any social community that's totally
separated from the rest of the world. Each culture thus is generally affected by societies of the
encompassing districts. Social values are inclined to be influenced by the values of communities
in near region. The societies, which developed amid the same periods of time frequently, appear
certain similitudes. Advanced times have seen an blend of societies. Societies are mixed together
giving rise to shared societies.
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