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  • “That’s the power of German engineering.” This phrase was used in Volkswagen advertisements to instill a sense of appreciation and respect for German innovation. As one of the world’s most established and well-developed nations, Germany—through its substantial influence in the automobile industry—has a legitimate claim to hosting a forward-thinking, aspirational population. One example of this

  • In the last century, women’s rights and opportunities have grown dramatically in the United States and other countries around the world. In very few areas are these changes as pronounced as in women’s role in the workforce. Cultural, political, and economic factors all push and pull social norms and contribute to these changes, and their

  • For the most part, businesses in India look a lot like businesses in the United States. General partnerships, corporations, limited liability companies, and sole proprietorships all exist, although some go by different names. One unique structure that India’s culture has fostered is the Hindu Undivided Family (HUF). The strong value placed on relationships, hierarchy, and

  • The Mergers and Acquisition Synergies Framework we developed includes measures from research on national culture by Geert Hofstede, Erin Meyer, and Sidney Gray. We used their data to show how cultural factors in cross-border mergers and acquisition can lead to success or failure. Our research is limited to national culture factors, yet as seen in

  • Just 14 months after the acquisition, HP wrote down 80 percent of Autonomy’s purchase price. Four years later, HP sold Autonomy for a fraction of what it paid to acquire the company.  The differences in the accounting standards used by each company allowed Autonomy to recognize revenue in a more aggressive way. Ultimately, HP accused

  • The public had mixed opinions about the HP-Autonomy merger. Some shareholders felt that HP overpaid to acquire Autonomy, a sentiment picked up by the media. Many of the shareholders’ concerns were valid and stemmed from the lack of transparency concerning the deal. Public Acceptance Public Perception. The Cherokee have a proverb stating, “Listen to the

  • Leadership changes at HP soon after the merger resulted in friction affecting employees in both companies. HP’s decentralized management style conflicted with the hands on approach Autonomy’s CEO Michael Lynch used. Autonomy’s entrepreneurial management method clashed with the HP’s entrenched hierarchical structure. Leadership Leadership Turnover. Leadership turnover, or the act of changing CEOs during the

  • Autonomy’s work culture was different from what HP anticipated. HP found Autonomy’s culture to be more task–based and confrontational than HP’s culture. These behavioral problems were never resolved and resulted in friction and distrust. Characteristics Task-based vs. Relationship-based. Erin Meyer, author of The Culture Map, suggests that in business settings, the U.S. is more highly

  • HP had little experience managing software and found the software business unfamiliar. HP ultimately made the decision to let Autonomy function as an independent unit. Consequently, effective communication between the two companies was not developed. Information Availability One indicator that HP’s acquisition of Autonomy would not yield the anticipated results is communication, or lack thereof,

  • Shortly after Hewlett-Packard appointed Leo Apotheker to lead the company, the board approved the acquisition of the UK-based software company, Autonomy. Hewlett-Packard, well known for its computer hardware, thought the synergies it could have with Autonomy coupled with its brand recognition would give it a strong presence in the software market. This series explores management’s