The Description of the Situation
The overall situation is about the Beauchamp acquisition by the company called Synergon. Considering the active acquisitive position of Synergon, which is the company that is famous by its numerous merging actions, the company called Beauchamp fully suits the Synergon’s range of business interests.
Beauchamp Acquisition
First of all, the Beauchamp acquisition is challenging because of the possibility of receiving space in Europe that was the primary goal of Synergon. It would guarantee the additional opportunities and income, as well as provide Synergon by numerous important customers. Sarah Cliffe stated that “Nick’s company, Synergon Capital, was a U.S. financial-services behemoth, constantly on the lookout for acquisitions” (Sarah Cliffe 1). The first reason of misunderstanding is based on the cultural differences. Beauchamp is a British company with a smooth style while Synergon is more like an American predator that is ready to capture its prey. Beauchamp corresponds more to the conservative English type of a company that more tends to stay afloat, rather than to make a breakthrough. However, while having a solid list of loyal customers, powerful reputation, professional managers, and a few decades of experience behind, Beauchamp is not one of those unsuccessful firms that Synergon absorbed earlier. That is the reason of Nick’s worries concerning the upcoming integration. He believed that the fusion would not be successful, as it could cause the ambiguous reactions of the staff, and put the loyalty of customers in a risk. Despite all the distracting factors, Synergon begins the negotiations with Beauchamp, with a promise of leaving it on its own. Nevertheless, it was done in a manner that was suitable for Synergon. During the integration process, many of the expectations came true. The multiple changes and mass firings had shocked Beauchamp.
The Salvage
While being mostly in the same mode for many years, Beauchamp was completely unready for such cardinal changes. It was not the same Beauchamp anymore; after all, of the staff members were fired, just because they were not accommodated to Synergon’s style. The main reason of Beauchamp’s disturbance is about Synergon’s aggressiveness and indifference to complaints of the Beauchamp’s members, an opinion of which was strongly underestimated. In this respect, the absence of trust from the British side is fully justified. In the blink of an eye, they are losing everything that the company was gathering together for decades. The Beauchamp’s traditions, approach and spirit were fully underestimated and abused. Julian Mansfield’s rich experience shows that even if Synergon is successful, its approach is often overwhelmed by the unnecessary routine things that are completely useless. Mansfield does not trust Synergon, but he trusts Nick Cunningham. He realizes that Cunningham is subordinate and that he is a victim of circumstances. Thus, the promise of letting Beauchamp on its own has not to be just a promise. At this point, Synergon should hold its horses, and leave the space for Beauchamp’s ambitions, as well as provide the implementation of the necessary innovations that would carry an attentive character. Hence, the rights and interests of Beauchamp should not be suppressed. At least, it would be reasonable for Synergon to give Beauchamp some time to get used to it, without rush.
The Meeting
Cunningham feels that Mansfield is interested in his favor, and due to his honest motives he cannot let himself misuse the forming relationship. It was clear that J.J. d’Amato wanted Cunningham to gain Mansfield’s trust, and further to use it for the good of Synergon. However, Cunningham was not like the guys from Synergon. At some extent, he even was completely opposite. It could help him to make the right moves, which would be beneficial for both of the sides, without any signs of oppression concerning Beauchamp. In this respect, the business plan should be created, which would include the presence of Synergon’s financier in Mansfield’s team. Therefore, it is required for him to be able to correctly explain the plan details, and to find the right approach through strong and convincing arguments while using a solid base of facts. In its turn, Cunningham should let Mansfield know that he cares about the future of Beauchamp and that he will make all the efforts to minimize the negative aspects of Synergon’s aspirations towards it. He needs to assure Mansfield that he will be aware of all Synergon’s decisions, and will try to influence d’Amato’s position concerning Beauchamp in a positive way.
Dalian Wanda Acquits Hollywood Studio Legendary
Dalian Wanda Group, which is a Chinese company, has bought the Hollywood Studio Legendary that is the American film studio for $3.5 billion. The integration is a perfect opportunity for Dalian Wanda Group to expand its business overseas. Moreover, it is the example of well standing and promising company. It was reported that “Wanda is already the world’s biggest movie theater operator, having bought AMC Entertainment Holdings Inc, North America’s second-largest cinema chain, for $2.6 billion in 2012” (“CNBS: China’s Dalian Wanda buys Hollywood studio Legendary for $3.5 billion” par. 7). In its turn, the president of Dalian Wanda is one of the richest Chinese in the world.
Dalian Wanda Group relates to the Chinese companies and represents one of the biggest cultural industry firms in China. The range of its competency spreads in the areas, such as culture, hotel business, tourism, and commercial property. In the year 2013, its yearly income was equal to $30.8 billion.
In its turn, the Hollywood Studio Legendary, or Legendary Entertainment, is a leading American company of media sphere, which is famous for the production of numerous popular movies and TV shows, as well as comics. As it was said, a current acquisition, the price of which is equal to $3.5 billion, allows the Chinese company to regulate the financing and production of the popular Hollywood movies, such as “300,” and “The Dark Knight” films (“Variety: Wanda’s Legendary Buy Is Just the Beginning of China’s Investment in Hollywood” par. 3).
Before the integration, Wanda Group was already an owner of a few media and theater firms in China, and abroad. As well as in the case with Synergon, for Wanda Group, it was not too difficult to make the decision of merging with Legendary, considering the fact that it provides a solid foothold in the USA, what was extremely important for the company. However, there was also an issue of cultural differences, as Wanda Group represents a Chinese company while Legendary is the American firm. In this respect, the distinctions between these two are far greater than between Synergon and Beauchamp. The partnership between the two countries in such industry is a brand new experience, and it was a very brave decision to make.
Wanda Group is the company of active position concerning acquisitions. It often fuses with different international companies of various kinds, what guarantees the growth of influence range, creates the additional income due to increasing of the number of customers and clients all over the world. It is also famous by its reasonable and diligent management, as well as multiple achievements. While being the richest man in China, Wang Jianlin, the president of Wanda Group, is also one of the most influencing businessmen of Asia. He always preferred actions more than talking.
There are also some cultural aspects that need to be reflected. The company actively aims for innovations, sustainable development, integrity, and commitment to excellence. It is required to say, that the employees valuing relates to one of the most important cultural aspects, which distinct Wanda Group from others. In this respect, Legendary also has a strong cultural background, what is reflected on its logo: “According to historians and anthropologists, this unbroken line was intended to represent eternity, fidelity and unity.” (“Legendary: About” par. 4). The firm always tries to provide only high-quality products and media.
Conclusion
Both of the examples of acquisition and integration appear to be very instructive. The case of merging of Synergon and Beauchamp is a wonderful opportunity to understand the requirements that have to be taken into account when doing business between different cultural foundations. The moral aspects and qualities such as honesty, humaneness and respect are extremely important. They are the base for any successful beginning, not only in business but in all spheres of life.
The acquisition of Legendary by Wanda Group reflects a successful example of integration, when the completely distinctive cultures find the common language and surpass the borders of national predispositions. Therefore, in the example of that merging, it becomes clear what Beauchamp would approximately be like, in the case of the successful acquisition.
Works Cited
CNBS: China’s Dalian Wanda buys Hollywood studio Legendary for $3.5 billion 2016. Web.
Legendary: About 2016. Web.
Cliffe, Sarah. “Can This Merger Be Saved?” Harvard Business Review 1.1 (1999): 1-4. Print.
Variety: Wanda’s Legendary Buy Is Just the Beginning of China’s Investment in Hollywood 2016. Web.