When UpJohn Company Merged with Pharamcia AB, Problems Emerged Forcing

question 31

Multiple Choice

When UpJohn Company merged with Pharamcia AB, problems emerged forcing the partners to meet and talk about their cultural differences.This is an example which illustrates that:

• A)Organizational culture clashes often occur when partners do not fully understand the culture of the new partner
• B)There often are substantial differences between the organizational cultures of different subsidiaries and of course, this can cause coordination problems
• C)Organizational culture tends to moderate or erase the impact of national culture
• D)Companies deliberately maintain distinct business cultures because they do not want one culture influencing the other

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Definitions:

Bid-rigging

A form of fraud where competing parties conspire to determine the winner of a bidding process.

Cartels

An agreement among competing firms to control prices or exclude entry of a new competitor in a market.

Winning Bidders

The individuals or entities that offer the highest bid in an auction and are subsequently awarded the item or contract.

Winner's Curse

A situation in which the winner of an auction ultimately overpays or incurs a loss because of overly optimistic valuation of the asset bid on.