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Impact of Culture on International Business

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The number one semiconductor company in the world Applied Materials recently merged with the world's number three semiconductor company Tokyo Elecktron. The stock prices of both companies went up significantly after the merger was announced, which shows that investors welcome this move that may create synergies and help both companies battle declining revenues in the semiconductor industry. However, even though there are potential benefits to this merger in terms of operational synergies the human side of a merger can often be difficult. Furthermore, Japanese and American cultures are widely perceived as being extremely different from each other which may add to the difficulties in managing the human side of this merger.

1. What do you think the biggest challenge in terms of cross-cultural management will be in the merger of these two companies? Remember to consider to issues of differences in national cultural values between Japan and the U.S.

2. What steps do you recommend be taken to help ease cultural differences between the two companies?

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This solution discusses the challenges that arise due to cross-cultural management and recommends how these differences can be managed in the given case. All references used are included.