Case: Yinscape and Yangsearch
The case study is related to the merger of two internet companies that have a diverse area of functioning comprising of providing services and products in different countries. These companies are pioneers in their respective fields and markets and have different origins. Both companies have not been observed to well in the market race at 2nd position in the UK and the client base has not been declined.
If we do an analysis of the two companies we can see that Yinscape is an Indian based company that has acquired Yangsearch that is American based. Looking at the origins of the two companies, we can easily say that has to been many cultural differences that will have to be looked into when the merger is made. By culture I mean the cultures of the countries that the two firms are in and the resulted organizational culture that is shaped by the people working in the organization both the organizations.
Looking at the case study, it is clear that the merger has been friendly for most of its parts. The Yinscape has a private investor that is supporting the acquisition of Yangsearch. The merger has not been a smooth process as there has been some resistance seen from the administration at Yangsearch. Both the firms are at the 2nd place in the market for the products and services both the companies are offering in their respective markets. The financial and industry advisors were also skeptical of the future of the merger. They were skeptical because they thought that the scrutiny and regulations that would be faced by the merging process would be very intense.
As we can see that both the companies have different countries where they are based. Furthermore they areas in which the two companies are functioning are different. Yinscape has 250 people working while Yangsearch has 400 people working in it. The differences are not limited to the type of services and products offered by the companies but also the operational differences are much visible. The Indian company is centralized while Yangearch is decentralized. Yangsearch has clients that are or greater in size than of Yinscape which has smaller business as their clients. Thought we can see that the client base of Yinscape is much higher in number. Yinscape has been a company that had a strong cash flow since the start of its operations. In contrast, Yandsearch has had cash flow problems but the continuous efforts and strategies adopted by the company staff ensured that the company is a success.
The CEO on the other hand is very happy with the merger and he believes that as both the companies are functioning in two different fields, the mixture of expertise and the services and products will be beneficial to reach out to a more diverse client base. The CEO is hopeful about adopting to a new vision for the merged entities and taking on their competitors with a more powerful presence in the market. The CEO considers the combined client base to be a strength that could well be a game changer in respect to their competitors.
The merger that has taken place seems to be unnatural as the two organizations have different fields of expertise, different cultures, different origins and different deliverables. But if there is a success in forming a combined vision that is focused on incorporating the skills of both the organizations in a way that it could give rise to a culture of cooperation and understanding between the employs if the two organization, the results would be enormous. An interaction between two different organizational cultures can give rise to an environment of innovation where ideas are exchanged a collaborations performed to put quality to products and services. The more internationalized combined client base should be taken full advantage of. This client base will provide both the companies to offer their services to each other clients and hence increase productivity.