Merging four branches in Eastern Europe

[Eastern Europe]

Hi All,

I am studying international business and now have to prepare a presentation about merging a few markets. The suggested business case is the following:

''Imagine you are an MD (Managing Director) in one of the Eastern European countries for example in Poland. The headquarters of the company are based in The Netherlands and it has 30 branches worldwide including branches in Poland, Belarus, Hungary and Ukraine.
Now the thing that I, as an MD for the branch in Poland have to do, is to combine the four of them and become one- The Eastern European Region''.

So I would like to ask you to share some thoughts, ideas or comments on what the impact of the merger would be, i.e. on the main headquarters, the four branches, headcount, marketing, laws etc. Advantages, pitfalls...

Thanks, I really look forward to hearing from you.
Regards,
Vaiva

 

[Cornish Steve]

It wouldn't be right for us to do your work for you, but maybe I can raise some issues:

1) Consider the impact of cultures. Neighbouring cultures are often distrustful
2) Consider also the importance of languages and of national currencies
3) Are all the countries in the EU and subject to its regulations?
4) What are the average wages in each country?
5) What entitlements apply in each country - for example when you fire someone?
6) Communication is critical, so how will you encourage frequent and effective communication?
7) What can you do to bond your team so everyone feels a part?
8) What can you do to ensure everyone in every country feels important and part of the company?

 

[SusanP]

Well, for one thing, Poland and Hungary are going to be annoyed at being called part of Eastern Europe. The old meaning of Eastern Europe was a political region, not geographical. Poland and Hungary are in Central Europe and will probably feel that they have more in common with Austria and Germany than with the former Soviet republics of Belarus and Ukraine.

 

[tasmanialtd]

...this is quite complex...maybe you could read over some other case studies for example SCANIA and merging with France....

I hope you are doing well with your question