Globalization created a new trend of cross-border acquisitions from the East to the West. Fueled by innovative motifs, Asian companies become respected and well-established Western brands, technologies, tools and knowledge, and through these acquisitions market access to developed and talented. One such company, Gold Peak Electronics ("GPE"), is a multinational corporation that is one of an elite group of companies in Hong Kong electronics design, production and sale of premium professional and home electronics. The acquisition of two high-end speaker premium British companies in 1992-KEF Audio and Celestion International-enabled GPE, to take advantage of these companies also established intellectual assets and R & D capabilities. However, cross-border acquisitions, such as those complicated, requiring the company to take into account the different regulations, national cultures, political factors, the employee thinking and working cultures. The acquisition has also had to deal with human resource issues in its acquisition, including the handling of the distribution and promotion of workers' sense of job security. Although several years have passed since the acquisition, cooperation between different GPES R & D sites in the UK, Hong Kong and China are still not optimal. As GPE successfully overcome the distance between these locations and the promotion of an innovative collaboration between the dispersed R & D-sites? Was growth through acquisitions of foreign companies the best strategy for growth in the GPE? This case illustrates the opportunities and challenges for global R & D and virtual collaboration between the geographical and cultural distance. In this case also introduces students to the unique challenges in acquiring foreign companies in Eastern companies, including human resource management and how the process of innovation and innovative thinking in different countries is different. "Hide
by Kuldeep Kumar, Maya Kumar Source: University of Hong Kong, 17 pages. Publication Date: August 27, 2009. Prod. #: HKU857-PDF-ENG
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