Page 237 - DMGT548_GLOBAL_HRM

Global HRM

Notes Joint Venture: It is a strategic alliance in which two or more firms create a legally independent
company to share some of their resources and capabilities to develop a competitive advantage.
Merger: It is a combination of two companies into one larger company.

Strategic Alliance: It is a formal relationship between two or more parties to pursue a set of
agreed upon goals or to meet a critical business need while remaining independent organisations.
Target: The firm being solicited by the acquiring firm.

12.8 Review Questions

1. “Hope is not a strategy. People must have specific skills, knowledge, abilities, and
experience in order to succeed in cross-border deals.” Do you agree? Justify giving example.

2. Analyse the factors that led to the failure of M&A deals internationally.
3. You are a corporate manager at Tata Group. Critically examine the factors you must have
taken in venturing abroad to acquire Corus.

4. What may be the critical issues that may crop up when a firm plans for M&A deals abroad?
5. “JV can be used as an entry strategy into a particular market or for purposes of risk
mitigation.” Justify.

6. Examine the factors that force the companies nowadays to venture abroad.
7. “There are risks involved in M&A’s internationally.” Analyse those risks giving examples.
8. “M&A’s are the successful if they are a perfect blend of culture.” Do you agree? Justify.
9. Elaborate the responsibilities of HR manager while making the cross-border deals.
10. Critically analyse the factors that Indian corporates must treat with utmost care while
making the outbound deals.

Answers: Self Assessment

1. Assets 2. Acquisition
3. Buyout 4. Takeover

5. Private 6. False
7. False 8. True
9. True 10. True
11. Economic 12. Cultural

13. Partners 14. Tetley
15. True 16. False

12.9 Further Readings

Books Dowling, P. J. and Welch, D. E. (1999). International Human Resources Management.
4th ed. CENGAGE Learning.

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