Benelli and Qj compete in the international motorbike arena. Strategy and General Management. Furthermore, many changes in equity occurred with unsuccessful attempts to re-launch the company. The article is organised as follows. As revealed by the Whitley model, the transferability of practices and routines during the internationalisation process is discouraged due to varied labour-market institutions and differing state structures, policies and financial systems. Chinese are willing to work at night and on Sundays, whereas Italians considered this quite absurd, even in case of urgent or strategic deadlines. Qianjiang Group was not able to manage cultural differences in the beginning of the acquisition.
A budget system, as well as a simplified system of industrial accounting, was put into place. Like Us and Get Updates: First, a literature review on MNEs from emerging countries is presented, with particular reference to China and Chinese acquisitions. Nevertheless, China was an exception: The acquired firms, which are usually based in the developed countries, face financial or strategic difficulties Morgan Stanley,
Technological Learning, Innovation and Development, Vol. Qianjiang Group acquired an Italian company Benelli in The ability of a firm to develop inter-cultural and inter-organisational consistency is directly related to its ability to succeed in new and foreign markets where there are distinctive political, economic, social and technological environments. The acquired firms, which are usually based in the developed countries, face financial or strategic difficulties Morgan Stanley, These new approach would make them stars: Information flows to the buyers are also related to the financial statement.
The framework will be used as a guideline in the case study that follows. Increasing efficiency and production capacity were considered fundamental to reducing production costs and to bringing sales prices to more competitive levels. Trust was difficult to build.
Such a large reduction continued in the first months of Benelli and Qj compete in the international motorbike arena. She also has significant experience as consultant and aand executive and MBA trainer in the field of internationalisation processes of small and medium companies. Gugler edsChinese International Investments.
The findings suggest that while superficial product-portfolio and cost benefits can accrue due to the acquisition, cultural and administrative differences and lack of synergies can prevent the acquirer from fully integrating the intangible brnelli, particularly human resource talent, of the acquired firm. Qianjiang Group also had low market share in the North America because there were large companies and consumers that were very loyal with Harley-Davidson.
After they gained more study share, they could be easily become studies in benellj near future.
What Drives Chinese Multinationals to Italy? With respect to the post-acquisition integration of technologies and branding know-how, the absorptive capacity of the acquiring firms to utilise the core competencies of the acquired firm is seriously caes by organisational and cultural divides.
Bendlli power is highly concentrated, but the most serious problem is related to feedback: Such cultural aspects have huge consequences for the organisational culture and management style Spigarelli et al. Table 1 reports on the main economic and financial information of the Italian firm pre- and post-acquisition.
Benelli and qj case study
Companies may face many challenges like cultural, language and economical difference. During the most recent phase of expansion, primarily focusing on intangible assets, government intervention has been viewed with suspicion and has slowed or prevented agreements, alliances and acquisitions, similar to what occurred in the past in other Asian countries Goldstein, Globalisation occurs through Greenfield and Brownfield initiatives, and especially through acquisitions of existing assets Hess, ; Rui and Yip, OECD Bnelli How this is achieved may be prescriptive, but the general choices of acculturation can be divided into three options: Globalization has played a very important role for many companies in expanding their businesses into different regions of the srudy.
Qianjiang Group was not able to manage cultural differences in the beginning of the acquisition. bbenelli
Financial statements and balance sheets of the acquired company At the intra-firm level, cultural distances and differences beneelli terms of business priorities may explain the Chinese perceived lack of importance of investments in the image of the firm, in market visibility, and in customer care.
The acquired company loses its identity and its senior executives are replaced.
Benelli and qj case study
See Hirt and Orr In the past, with the previous owners, more data had been available, especially at the industrial level. However, the drop in production costs was not comparable and losses increased steadily. Register Submit to us Case writing resources Case writing scholarships How to submit your case Online case submission Why submit your case to us?
Ajd Group also had intense competition from Japanese companies in the Europe. But the budget only focused on sales performance and production costs, whereas industrial information focused only the number of motorbikes and spare parts produced, the number of motorbikes and scooter sold, and the working hours in the benellu.
This created several administrative problems and misunderstandings: