In the following research essay, the take-over of ARAL by the German BP will be analysed. Furthermore, the case will explore the assumption of ‘transformational change’ as the best way to achieve successful change. Firstly, the background of the change will be explained. Afterwards a short comparison of both cultures will illustrate the differences of the companies. Overall, the change process will be explained and evaluated under the aspect of organisational change management. In order to expose the case, theoretical concepts and frameworks will be used. Finally, the way in which BP implemented successful the change will be linked to the set question of ‘transformational change’.
Table of Contents
INTRODUCTION
BACKGROUND OF THE CHANGE
Comparison of both Cultures
Way of Integration
ANALYSIS OF THE CHANGE PROCESS
TRANSFORMATIONAL CHANGE
Strengths of Transformational Change
Weaknesses of Transformational Change
CONCLUSION
REFERENCES
Objectives & Core Themes
The primary objective of this research essay is to analyze the takeover of ARAL by BP, specifically exploring the validity of 'transformational change' as an effective organizational management strategy. The paper evaluates how theoretical frameworks of change management were applied during this corporate integration to overcome cultural differences and successfully establish a unified new organizational culture.
- Analysis of the strategic takeover process and the cultural differences between BP and ARAL.
- Evaluation of organizational change management methods, including internal integration and communication strategies.
- Application of theoretical change frameworks, such as Lewin’s Force Field Model and Wilson’s change dimensions.
- Discussion regarding the strengths and weaknesses of transformational change in large multinational organizations.
Excerpt from the Book
Comparison of both Cultures
Immense cultural differences of both companies appeared during the take-over. The worldview of BP is international-orientated and employees’ identification is focused on the company. In comparison, ARAL is a typical German company and employees identify themselves with the brand but less with the company itself. Values and manners inside the companies are also contrary. The British self-responsibility and simple organized structure met the German controlled and hierarchical structure. British informal behaviour had to be matched with German formal behaviour. BP is looking for simple, fast and flexible solutions whereas ARAL prefers a top-down-management. (Scholz et al, 2004; BP, 2004b) In spite of extreme differences the process of integration proceeded without big problems. (Scholz et al, 2004)
Next, will be described how the integration was organized and accepted.
Summary of Chapters
INTRODUCTION: This chapter outlines the scope of the research regarding the BP/ARAL takeover and introduces the theoretical objective of analyzing transformational change.
BACKGROUND OF THE CHANGE: This section details the historical context of the 2001 acquisition, highlighting the unique market position and the brand retention of ARAL.
Comparison of both Cultures: This chapter compares the British, international-oriented corporate culture of BP with the German, hierarchical, and brand-focused culture of ARAL.
Way of Integration: This section describes the specific internal management processes, such as workshops and communication forums, used to facilitate cultural and structural integration.
ANALYSIS OF THE CHANGE PROCESS: This chapter applies academic models like Lewin’s 'Force Field Model' to categorize and evaluate the BP takeover as a planned, revolutionary transformational change.
TRANSFORMATIONAL CHANGE: This section provides a theoretical overview of transformational change, distinguishing it from incremental change.
Strengths of Transformational Change: This chapter discusses the advantages of transformational change, particularly regarding its ability to involve all organizational levels during periods of discontinuity.
Weaknesses of Transformational Change: This section identifies the risks of transformational change, including cost-intensity and the necessity for robust, motivated leadership.
CONCLUSION: This chapter synthesizes the findings, confirming that the BP/ARAL case serves as a successful example of planned, charismatic transformational change.
REFERENCES: This section provides the academic bibliography and data sources used to support the research.
Keywords
BP, ARAL, Transformational Change, Organizational Culture, Change Management, Takeover, Integration, Lewin’s Force Field Model, Corporate Strategy, Human Resource Management, Strategic Change, Cultural Integration, Organizational Development, Knowledge Exchange, Business Transformation
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the corporate takeover of ARAL by BP, analyzing the organizational change management strategies employed to merge two distinct corporate cultures.
What is the primary objective of this work?
The goal is to explore whether 'transformational change' is an effective framework for achieving successful corporate integration in large multinational entities.
What methodology does the author use to analyze the case?
The author uses theoretical change management concepts, primarily comparing the case against established models such as Lewin’s 'unfreezing-change-refreezing' process and the 'Force Field Model'.
What are the key thematic areas addressed?
Key themes include cultural differences, communication strategies during mergers, the role of change agents, and the theoretical distinction between incremental and transformational change.
What does the main body of the text cover?
The main body covers the background of the BP/ARAL deal, a detailed comparison of the companies' cultures, the integration methodology, and an analysis of the change process through various academic lenses.
Which keywords best characterize this study?
Keywords such as Organizational Culture, Transformational Change, Strategic Integration, and Business Transformation best characterize the study.
How were the different cultures of BP and ARAL described?
BP is described as having an informal, international, and flexible culture, whereas ARAL is characterized by a formal, hierarchical, and top-down German management style.
Why was the transformation considered successful according to the author?
It was deemed successful because BP managed to reduce employee fear and insecurity through transparent communication and a two-step integration process that established a new, shared corporate identity.
- Quote paper
- Sven Rosenhauer (Author), 2005, The Takeover from ARAL by BP, Munich, GRIN Verlag, https://www.grin.com/document/119563
