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Konrad Bugiera, Dr Jacek Trębecki |
Konrad Bugiera, Dr Jacek Trębecki
Poznan University of Economics
POLISH SOFTWARE VENDORS BRANDING CAMPAIGN ACCOMPANING ACQUISITIONS IN GLOBAL IT MARKET
Traditional direction of mergers and acquisitions is often associated with activities of companies from developed countries that take over other companies from the same or similar branch on their own markets or emerging markets.
Seldom we deal with the cases of companies from emerging markets take over companies from developed countries. Often such cases can be explained with concentration of income within a narrow group of people, who can afford even a very big expense, as it is in case of investments made by Russian oligarchs in companies from Western Europe.
However a part of those investments are made by companies, which thans to their excellent management and innovative products won a position that is strong enough on local markets, that that they are able to expand to more developed markets by taking over companies which operate there.
Such cases are a very curious field of research for scientist who deal with communications processes. Especially when a acquisitions take place in countries where stereotypes thrive. What interests the researchers the most is the examination of how strong is the emphasis put on the cultural issues in performed communications programmes in comparison to content of communication during acquisitions in countries where there is no burden of stereotypes.
Detected differences will enable to show how much emphasis is put on braking the stereotypes in communication programmes.
In this paper, the authors present a case of Polish company Comarch which operates on IT market. The company expanded to Germany and USA. On each of those markets they conducted communication activities. Authors tracked the communications activities on several markets by among others analysing the content of websites dedicated to each of the markets and content of press publications where the name Comarch was mentioned.
The analysis will enable to answer the question what is the role of cultural stereotypes in modern – more and more globalised – economy and if the significance of intercultural communication will grow or not. |
Dr. Holger Sievert
TUM Business School / European Business School
THE ICC ONION THEORY AND THE DAIMLERCHRYSLER DEAL
A Theoretical Approach to Communication Support of International Mergers and Acquisitions, based on one of the biggest failures in investment history
The Merger and De-Merger of DaimlerChryser is generally considered to be one of the most important M & A topics within the last decade. The failure of the deal was mainly caused by general economic and management problems. However, this paper tries to argue how differences in business communication culture between Germany and the US played a considerable role in the ultimate corporate problems.
This paper will apply a heuristic analytic grid developed by the author some time ago. It was first presented as a “Theory of International Corporate Communication” (ICC), but especially in Eastern Europe has become known as “ICC Onion Theory” due to the main theoretical explanation picture. This grid is applied to a particularly notorious case of corporate communicational problems, namely the apparent merger and de-merger of Daimler Benz and the Chrysler Group. The “onion” denotes a series of layers of particular cultural characteristics within the context of journalism and corporate communication, thereby offering a model for categorizing and comparing cultures with a view to resolving difference.
The paper will use the “Onion Theory” to conduct a “Gap-Analysis” of the political, cultural, and corporate differences between the US and Germany, thereby elucidating potential mutual communicational difficulties. This will in turn offer starting points of explanation for the failure of the DaimlerChrysler deal on a communicational level, showing that a systematic and clear-sighted appraisal of cultural difference may have offered the merger an improved chance at least of “internal” success.
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Owen Kulemeka
PhD Candidate
University of Illinois at Urbana Champaign USING SOCIAL MEDIA TO PROMOTE AND OPPOSE INTERNATIONAL MERGERS: THE CASE OF INBEV AND ANHEUSER-BUSCH
This paper describes a study that examined how opponents and supporters of a merger between two international companies used social media (e.g. YouTube, blogs) and traditional media (e.g. newspapers, television) to advocate their causes. The study reveals that although social media can help merger opponents quickly organize, merger supporters can utilize traditional media and social media to counter opposition.
The US $52 billion merger between the brewing companies’ InBev (Brazil and Belgium) and Anheuser-Busch (United States) in 2008 was one of the most controversial mergers in recent years. When announced, the merger faced opposition from a variety of fronts. Augustus Busch IV (CEO at the time) and his father Augustus Busch III, strongly opposed the merger. The Busch family argued that InBev was not offering enough for Anheuser-Busch’s stock. Several analysts noted that the family also opposed the merger because they felt it would deal a blow to the Busch family legacy.
Politicians in St. Louis, Missouri where Anheuser-Busch is headquartered also opposed the merger because they feared it would result in job losses. The governor of Missouri directed his economic development department to explore ways to scuttle the merger. The state’s two senators published letters decrying the merger. Even President Barack Obama (who was then running for the presidency) stated that “I do think it would be a shame if” Anheuser-Busch was foreign-owned (Bohan, 2008).
Anheuser-Busch employees, worried about job security in the new merged company, opposed the merger. Various non-profit organizations which had benefited from Anheuser-Busch’s philanthropy expressed opposition because they feared that the new company would cut charity donations. Several consumers also expressed opposition for a variety of reasons including fears that InBev would alter the taste of their favorite beers and that placing an iconic brand in foreign hands was problematic.
To derail the merger, opponents embarked on a social media campaign using websites such as www.keepbudweiseramerican.com and www.saveab.com. Facebook groups such as Boycott Anheuser Busch InBev, STOP InBev from buying out Anheuser-Busch, Save Anheuser-Busch from the merger, and Please Don’t Sell Out Anheuser Busch were created. On YouTube, videos such as You Suck InBev and Kiss My Glass were posted. As a result of this campaign, thousands signed petitions opposing the merger and several hundreds attended protests in St. Louis.
Faced with this opposition, InBev implemented its own defensive social media campaign. Using a blog titled www.globalbeerleader.com, the company distributed statements presenting its three main arguments in favor of the merger. The first argument was that the merged company would create a stronger company. Second, the merger would not result in any US brewery closures. Third, the merged company would not change how it produced US beers.
On television, in magazines, and in newspapers, InBev carried out another campaign in which it made four arguments. First, the merger offer InBev was making was more than fair considering the bad shape of Anheuser-Busch’s finances. Second, since the Busch family controlled only 4% percent of the company, their opposition to the merger was not necessarily in the company’s best interest. Third, the merged company would remain committed to the US. Fourth, politicians, by opposing the merger, were engaging in protectionism that could backfire against US companies doing business in other countries.
By using social media to address arguments made by consumers and employee groups, InBev was able to get its voice heard among the various online outlets against the merger. By using traditional media, InBev was able to counter arguments made by investors and powerful politicians. This integrated effort played an important role in the merger succeeding.
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Ryszard Ławniczak, Katarzyna Blanke – Ławniczak |
Ryszard Ławniczak, Katarzyna Blanke – Ławniczak,
Poznan University of Economics, Poznan University of Technology,
COMMUNICATION CHALLENGES FOR REVERSE GLOBALIZATION’S ACQUISITIONS.
Reverse globalization’s acquisitions (RGA) represent a new, long-term trend in the global economy, namely the South-North FDI (or up-market FDI) originating from emerging economies (i.e. developing and transition economies) and destined to advanced countries . This paper presents that
new phenomenon, its sources, implication for the host and home countries, as well as the communication challenges faced by the “new conquerors” - the emerging markets multinationals. This study is limited to the cases of most spectacular takeovers by TNC’s from BRIC (Brazil, Russia, India and China) countries (plus Poland) of firms in developed countries. After introducing the concept of “reverse globalization acquisitions” and discussing the most important challenges, the authors give next the overview of the communication strategies and instruments applied to overcome developed economies businesses, governments and people fear. |
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