International Focus Magazine Vol. 2, #4 | Page 33

required to market each product in a new but well-established market. The Human Resource department is al- ready addressing compensation equity, health benefits, leave policies and other issues where there may be disparities between the rights of US workers and foreign workers. You are not yet aware of how differences in cultural orienta- tion have set the stage for a significant “culture clash” that will threaten the execution of the business strategy. gumbo producers strongly object to their product being distributed in cans, asserting that metal containers alter the flavor of the gumbo. A series of tests determines the objection has merit. As a result, distribution of the gumbo product in US markets must cease until a decision can be made about a packaging alternative. Worse still, it ap- pears that marketing the chicken soup in cans in foreign markets will also be problematic. Changing the packaging is a cost that was not considered prior Your role requires you to protect the to deal close. While decision-makers merged business against any risk that are working around the clock to get could negatively impact operations. the packaging problems resolved, the The first issue that must be addressed best R&D employees of the acquired is “quality control” in the production business leave the company, dissatisfied of the gumbo. This means imposition with the lack of autonomy and con- of procedures that must be strictly ad- vinced that their former employer will hered to, to ensure that gumbo mar- end up trashing the reputation of an keted in US markets meets USA FDA excellent gumbo product they have de- standards. Until that is accomplished, veloped. They approach the two large all test marketing of additional gumbo US competitors of the merged com- products must cease. Unexpectedly, pany with an offer to develop an entire packaging also becomes an issue. The line of excellent gumbo products to be chicken soup is marketed in cans. The marketed in the US. One of the com- petitors buys their pitch, agrees to pay premium salaries with performance bonuses, and grants them control over test marketing and gumbo production in the US. The competitive advantage the acquisition was designed to cre- ate evaporates. One year following deal close, the leadership team of the chicken soup company must acknowl- edge lost US market share, an inability to price the gumbo marketed in the US competitively, and strong competi- tion from the branded US competitor in the foreign markets. The strategy that looked so promising on paper was derailed. Cultural differ- ences that decision-makers overlooked killed the value of the deal. The lesson learned, too late, is that it may not be as easy as it looks to integrate chicken soup with gumbo. Connie Barnaba, president, Barnaba & Associates, Inc., is a CM&AA and GPHR. Visit the website at: www.businessmarriages.com iF Magazine | www.iFMagazine.net 35 33