Multi culture mergers affect Organizational and Change management

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Merger defines the combination of two or more cultures into a single culture, which includes to completely adopt or any other forms of merging (Kloosterman 2005).

Reasons frequently cited for companies to merger include promotion of growth, adjusting with new management, reacting to the change in government laws and regulations. There are also benefits of change in the exchange rate of currencies of different countries. Mergers could also take place as a result of change in political and economic conditions, it is useful for lowering the labour costs, and there are chances of increased productivity and to find a new customer base.

A defining feature of a merger in all cases is that it represents an example of large scale and fundamental transformation, resulting in major alterations to the merging organizations structure, processes, and social systems (Kiefer, 2005 and Reilly et al. 1993).

The UK Retail industry is the largest and most competitive industry. TESCO is an international retailer and the leader supermarket in the UK. It controls 31.60% of the UK's market share. Its main rivals are ASDA, Sainsbury's and Morrison's.

In every organization there are macro and micro environmental factors that influence its decisions and operations. SWOT, PEST and Porters five forces are used to analyse the industry to gain competitive advantage. TESCO differentiated itself by introducing Self checkoutin 2003 in its Dereham, Norfolk store. The success of the self checkout trial in Dereham store led to its implementation in other TESCO outlets. Does the TESCO's employee belongs to different multi-cultural backgrounds adapts this organization and change management.

TESCO's international expansion strategy has responded to the need to be sensitive to local expectations in other countries by entering into joint ventures with local partners, such as Samsung Group in South Korea (Samsung-Tesco Home Plus), and Charoen Pokphand in Thailand (Tesco Lotus), appointing a very high proportion of local personnel to management positions. It also makes small acquisitions as part of its strategy for example, in its 2005/06 financial year it made acquisitions in South Korea, one in Poland and One in Japan.

TESCO has recently expanded its new operations across other countries beyond Europe in Far Eastern countries, Middle East, South Asia and United States of America. There are different multi ethnic people are already working in TESCO and after landing on a foreign soil needs to be.

Cultural differences appeared to be prominent in the organization. The corporate culture of each of the five merged entities remained prominent in the organization. The approach to service delivery from merged organizations was totally different. There seemed to be a challenge of integrating the activities of different groups of people so that their efforts combine to achieve organizational objectives. This resulted in the TESCO not achieving most of its strategic objectives in the early years of its existence.


To identify, describe and produce an analysis of the interacting factors which influence Organization Management.

To complete MBA Dissertation

Preliminary Review of Literature

"Literature review is an examination of recent research studies, company data, or industry reports that act as a basis for the proposed study".

(Coopers 8th Edition)

Critical Literature Review

"Research Dissertation is both good and original, but the part that is good is not original and the part that is original is not good".


The main of the critical literature review is to extract information from the existing theories & practices without damaging the original one; this would give a broader perspective and identifying the weaknesses, limitations or inappropriateness of the theory.

Organizational Change Management

Change Management is a structured approach to shifting/transitioning individuals, teams and organizations from a current state to a desired future state(Employees Survival Guide to Change; Jeff Hiatt, et al). It is an organizational process aimed at empowering employees toa ccept and embrace changes in their current business environment (Tim Creasey; Change Management)

The field of change management can be confusing and sometimes complicated to research and study, especially for new comers (Tim Creasey; Change Management). As changes in organization have become more frequent and a necessity for survival, the body of knowledge known as "change management" has also grown to encompass more skills and knowledge from each of these fields of study.

Change management is the study of why organisation need to change, how affects, how to response to changes in the environment.

All stakeholders of change play a full role in the successful implementation of change management.

Routines associated with the effective change management are:

Establish a clear change management strategy at top level and communicate this shared vision to rest of the organization.

Communication is the most effective key to successful implementation.

Managers often resist the idea of participation to reach a decision during early involvement. There are two important benefits for allowing participation to take place as early as possible in the change process. Without this even if attempts are made to consult or to inform, people will not develop a sense of 'ownership' of the project or commitment.

Creation of an open climate to express individual anxiety and concerns and the use of positive effects of ideas and knowledge held within the organization.

With major change programmes it is especially important to set clear targets for which people can aim.

Successful organizational change depends on viewing training far more as an investment in developing not only specific skills but also in creating an alternative type of organization.

Types of Organizational Change

There are many different ways of categorising organizational change, Understanding the nature of the change an organization wish to undertake is important in determining an appropriate strategy. The following are some types of organizational changes:

Incremental Change

Incremental change may be major and highly significant change but is gradual and repetitive. Incremental change may stop employee resistance.

Transformational Change

Transformational change usually helps an organization regain strategic alignment with its environment. If an organization loses touch with its shifting marketplace, more fundamental transformational change may be needed for survival.

Strategic Change.

Strategic change deals with broad, long term and organization-wide issues. The capacity of the firm to identify and understand the competitive forces in play and how they change over time, linked to the competence of a business to mobilize and manage the resources necessary for the chosen competitive response through time (Pettigre &Whipp: 1999)

Multi Cultural Mergers

The driving need for multinational and global companies has come about because manufacturing and some aspect of customer service have moved to lower cost economies in Eastern Europe and Asia. Graduates there are happy to take jobs previously located in the West at the far lower cost than the less well educated workers in Europe and North America.

Secondly the factor of playing globally is a dream of every organization and culture is the most needed thing. As in many cases, a complete lack of understanding of multi-culturalism did not provide the results for which parent companies were hoping. This had been particularly apparent in Europe where many American still see Europe as one large country. Today, it is Europe that is leading the drive to global expansion and Europeans who are seen to be corporately wise with a cosmopolitan approach to business, and who are successful at developing multi-cultural business.

As the speed of communication and ease of travel increases, the world seems to get smaller and business need to satisfy demand on a global basis. This has resulted in increasing numbers of cross-border mergers and acquisitions, reported almost weekly in the press. TESCO has recently expanded its operations across the worldwide and is planning to expand its operations more in other countries as well. It has multicultural values of employees working and serving in multicultural places. The researcher has read about the failures where integration doesn't work and what went wrong. However, companies where integration has been successful quickly become known as a global success story.

Cultural differences appeared to be prominent in the organization. The corporate culture of each of the five merged entities remained prominent in the organization. The approach to service delivery from merged organizations was totally different. There seemed to be a challenge of integrating the activities of different groups of people so that their efforts combine to achieve organizational objectives.


Restructuring is the most common form of major organizational change (Key concept 12. 1). According to its protagonists, restructuring should not be a defensive cost-cutting process but rather a proactive attempt to achieve innovative products and services; 'focus without fat' (Kanter, 1989, p. 58). The goal should be synergy (Key concept 12.2).

Research Questions

Does organizational and change management affect multi culture mergers in TESCO


Doest multi culture mergers affects organization and change management in TESCO?

Research Objective

To study in detail the Organization and change management and affects of multicultural mergers in TESCO. This will help me to understand how the theory works in practical.

The research seeks to determine:

The nature, extent and effect of change management.

The nature, extend and effect of multi cultural mergers.

The influence of multi cultural in organization home town and operations abroad.

The nature and extent of possible influences of multi cultural mergers on change management.

Research Methodology

"Research Methodology implies an orderly procedure to be followed using predetermined methods which can be concluded to logical conclusion. A research is a study of researcher's subjective interpretation"

(Stake, 1995:41)

"Methodology is the study of methods and it raises all sorts of philosophical questions about what it is possible for researchers to know and how valid their claims to knowledge might be".

(Fisher, 2004: 34)

I think it necessary to mention here the difference of Management and Business Research - which is not big but is as theoretical and practical aspects.

In this Dissertation the methodology which I selected is as under:-

Research Philosophy

According to Mark Saunders, research philosophy is based on the way it, to development of knowledge. This seems rather profound, and not something to which would normally give much thought. Yet the way we think about the development of knowledge affects, albeit unwittingly, the way to do research. Three views about the research process dominate the literature;


Interpretivism and



"Working with an observable social reality and that the end product of such research can be law-like generalisations similar to those produced by the physical and natural scientists".

(Remenyi et al., 1998:32)


Realism is based on the belief that a reality exists that is independent of human thoughts and beliefs.

(Saunders: 3rd Edition)


Interpretivism can be said that the 'details of the situation to understand the reality or perhaps a reality working behind them'.

(Remenyi et al 1998:35)

Research Philosophy in this proposal and through out my dissertation will remains Realistic - which I would likely to share within a profound society.

What is the access and sampling strategy (including sampling numbers)?


A sample is a subset of your population by which you select to be participants in my study.


Sampling is simply stated as selecting a portion of the population, in your research area, which will be a representation of the whole population.

Sampling Strategies

The strategy is the plan you set forth to be sure that the sample we use in our research study represents the population from which you drew our research sample. For example, if your study included the living donors then the strategy you chose to enter them would help support that they are representative of all living donors. As an introduction, there are terms associated with sampling population, sample, sampling frame, eligibility criteria, inclusion criteriam exclusion criteria, representativeness, sampling designs, sampling bias, sampling error, power analysis, effect size, and attrition. Types of sampling include convenience, accidental, snowball, quota sample, purposive sampling, simple random smapling and cluster sampling.

In quantitative studies, the representativeness is the important quality of a sample. Specific sampling procedures are less likely to result in biased samples than others, yet there is not a guarantee of a representatives sample. Researchers operate under conditions in which error is possible. As a quantitative researcher, we are to minimize or control for errors.

In certain types of sampling strategies, it is possible to estimate through statistical procedures the margin of error in the data obtained from samples. You will wish to choose a sampling design that would the least amount of associated error. The major groups of sample designs are probability sampling and non probability sampling. These all will be done by the success of this proposal as it is an on-going process.

How will the data be analysed and presented?

Data analysis is a process of inspecting, cleaning, transforming, and modelling data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different business, science, and social science domains.

What are the limitations of your research - comment briefly validity, reliability and generalisability?

The limitations of the research will be submitted along-with the dissertation in detail as the questionnaire is not yet finalized and it will be early to say about the limitations of the data.

Ethical Consideration

Statement of Originality

Except for those parts in which it is explicitly stated to the contrary, this work is my own. It has not been previously submitted for assessment at this or any other institution.


Please check the following statements are true, tick the appropriate box and sign the declaration.

I have included a full reference list using the Harvard style of referencing

I have provided Harvard style references for all the ideas, empirical evidence and other materials I have used.

I have referenced all passages from my source material.

Wherever I have copied someone else's words (a quotation), I have clearly shown in the text how much was copied by using speech marks.

I have not committed any falsification. This means I have not presented invented data, by for example claiming that I have conducted interviews or sent out questionnaires when I have not, or altering or making up my results.

I can make available evidence of originality, including notes, photocopies, drafts, primary data and computer files.

Planning and any special resources required

Planning is the essential tool in any kind of project either in business or college or university life. Because a dissertation is a such a long and complex document, it is essential to develop a dissertation plan before beginning the writing process. Dissertation plans are strategies of approach that detail the way in which a writer will execute his or her dissertation composition. Often, these plans are established on a timetable determined by the writer and his or her dissertation advisor. Dissertation plans are not the same as dissertation outlines, which detail the information the dissertation will include; dissertation plans are rather schedules for keeping the dissertation on track.

Dissertation plans are best constructed by determining specific objectives and tentative deadlines for each chapter. The Gantt chart is enclosed with this chapter as the mandatory requirement. (Gantt Chart regarding plan is on the next page).