questionnaire extent of change in management practice since acquisition and influence...

QUESTIONNAIRE EXTENT OF CHANGE IN MANAGEMENT PRACTICE SINCE

ACQUISITION AND INFLUENCE OF PARENT COMPANY

1. Organisation Structure (Please circle an appropriate number for each question) 1.01 Basic organisational principle of the company (functional vs. product based structure)

a. Direction and strength of product-based <------------no change-----------------> functional change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 1.02 Levels in the hierarchy a. Direction and strength of fewer <---------------no change------------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 1.03 Number of different specialised departments a. Direction and strength of fewer <---------------no change------------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 1.04 Job rotation of managers between different functions (e.g. Operations to Personnel) a. Direction and strength of fewer <---------------no change------------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 1.05 Total employment in the company a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5

1.06 Number of managers as a % of total employment a. Direction and strength of lower <---------------no change-----------------> higher change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 1.07 Number of scientific or technically qualified staff as a % of total employment a. Direction and strength of lower <---------------no change-----------------> higher change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 1.08 Emphasis on formal qualifications for selection and advancement a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 1.09 Strategic decision-making centralisation/decentralisation a. Direction and strength of decentralised <------------no change-------------> centralised change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 1.10 Operational decision-making centralisation/decentralisation a. Direction and strength of decentralised <------------no change-------------> centralised change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 1.11 Approach to managerial decision-making - individual vs. collective a. Direction and strength of collective <-------------no change-------------> individual change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5

1.12 Prevalence of formal meetings a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 1.13 Type of planning a. Direction and strength of less formalised <-----------no change----------> more formalised change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 2. Control 2.01 Occupancy of key positions by parent company appointees a. Please tick if any of the following positions (or their equivalent) are held by people from the parent company: (i.e. appointed by the parent company from among parent company staff or from new staff appointed by the parent company). 1. CEO ...... 2. Financial Director ...... 3. Operations Director ...... 4. Sales and Marketing Director ...... 5. R&D Director ...... 6. HRM ...... 7. Others reporting directly to the CEO (please specify) .............................................. b. Was a new CEO appointed after the acquisition? Yes / No (please circle) c. If, “yes”, did the appointee come from: i) the acquired company ii) the parent company iii) he/she was a new (please circle) external appointment 2.02 Retention of specific key decisions by parent company a. Please tick if any of the following decisions require final approval by the parent company : 1. Budgets ...... 2. Capital expenditure ...... 3. Appointment / termination of senior personnel ...... 4. Acquisition/divestment ...... 5. Formation of alliances (e.g. joint venture) ...... 6. Major contractual agreement ...... 7. Change in the scope/direction of company ...... 8. Major new products ......

2.03 Use of financial control systems a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 3. Human Resource Management 3.01 Employment philosophy - recruitment & termination a. Direction and strength of short-term <--------------no change----------------> life-long change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 3.02 Approach to career development a. Direction and strength of planned <-----------------no change-----------------> ad hoc change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 3.03 Approach to promotion a. Direction and strength of slow <------------------no change-----------------> rapid change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 3.04 Amount of training a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 3.05 Nature of training - on-the-job vs. use of courses a. Direction and strength of on-the-job <---------------no change-------------> use of courses change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5

3.06 Reward systems performance annual a. Direction and strength of oriented <----------------no change----------------> increments change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 4. Sales and Marketing Management 4.01 Channels of marketing intelligence personal surveys and a. Direction and strength of contacts <---------------no change-----------------> scanning change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 4.02 Image projection a. Direction and strength of none <----------------no change----------------> strong change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 4.03 Methods of distribution a. Direction and strength of sub-contracted <------------no change-----------> done internally change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 4.04 Customer involvement in marketing decisions a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5

5. Communication 5.01 Philosophy a. Direction and strength of open<-----------------no change--------------> need to know change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 5.02 Communication mechanisms a. Direction and strength of informal <----- -------no change---------------> formal change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 6. R&D / Development of Products and Services (if applicable to your company) 6.01 Team-based or Sequential # a. Direction and strength of team-based <--------------no change-----------------> sequential change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 # The system of working on several processes in the chain at the same time in a team versus the system of completing one process in the R&D/development chain before the next one is started. 7. Operations 7.01 Use of automation/IT a. Direction and strength of less automated <-------------no change----------->more automated change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 7.02 Use of operations management techniques (if applicable to your company) a. Please tick if any of the following techniques have been introduced since the acquisition: 1. JIT operation ...... 2. TQM ...... 3. Statistical process control ...... 4. Quality circles ...... 5. Operator/employee responsibility for quality ...... 6. Continuous improvement ...... 7. Group working/work teams ...... 8. Other (please mention) ..............................................................................................

b. Influence of parent company none very great on operational techniques used 0 1 2 3 4 5 7.03 Emphasis on managing the total supply chain (if applicable to your company) a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 8. Procurement (if applicable to your company) 8.01 Multi source/single source a. Direction and strength of single-source <-------------no change---------------> multi-source change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 8.02 Degree of outsourcing a. Direction and strength of low <-----------------no change------------------> high change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 9. Company philosophy 9.01 Time horizon (Planning) a. Direction and strength of short-term <-------------no change---------------> long-term change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 9.02 Financial Time horizon (e.g. Payback periods) a. Direction and strength of shorter <-------------no change----------------> longer change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5

9.03 Style and culture a. Direction and strength of bottom-up <--------------no change---------------> top-down change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 9.04 Primary orientation a. Direction and strength of financial <---------------no change----------------> strategic change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 10. Strategy 10.01 Competing on price a. Direction and strength of less emphasis <------------no change----------> greater emphasis change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 10.02 Offering unique products/services a. Direction and strength of less emphasis <------------no change----------> greater emphasis change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 10.03 Cost control a. Direction and strength of less emphasis <------------no change----------> greater emphasis change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5 10.04 Development of new products/services a. Direction and strength of less emphasis <------------no change----------> greater emphasis change since acquisition -3 -2 -1 0 +1 +2 +3 none very great b. Influence of parent company 0 1 2 3 4 5

11. Overall a. What have been the greatest overall changes brought about by the acquisition of the company? (please continue answer on the back of this page if necessary) b. Which changes in the company’s management practice brought about by the acquisition do you consider have had the most impact on the company’s overall performance and has this impact been positive or negative? (please continue answer on the back of this page if necessary) Changes: Positive (+) / Negative (-) c. To the best of your knowledge, since its acquisition has your company’s position vis-à-vis its main competitors with respect to Profitability and Sales improved or worsened? i.Profitability Worsened <------------no change-----------> Improved -3 -2 -1 0 +1 +2 +3 ii. Sales Worsened <------------no change-----------> Improved -3 -2 -1 0 +1 +2 +3 12. Background Could you finally please just supply the following information which will help to make comparisons easier and more meaningful : a. Name of acquired company : b. Name of acquiring company : c. Nationality of acquiring company : 1. Japanese 2. US 3. French 4. German 5. UK 6. Other.................................. (please specify) d. Date of acquisition : e. Total employment of acquired company at time of acquisition : f. Total current employment of acquired company : g. Sales turnover of acquired company at time of acquisition : h. Sales turnover (latest year) of acquired company : i. Your job title in the company : j. Date of joining acquired company : k. Since the acquisition of your company, has it been involved in making any acquisitions or divestments itself:

Thank you for taking the time and trouble to complete this questionnaire.

========= Exchange Rates : http://www.oanda.com/

on Sunday, December 31, 1995

1 French Franc = 0.1317 British Pound 1 British Pound (GBP) = 7.5930 French Franc (FRF)

Median price was 0.1317 / 0.1318 (bid/ask). Minimum price was 0.1317 / 0.1318 Maximum price was 0.1317 / 0.1318 Computed from a sample of 1 price on Saturday, December 30, 1995

On Tuesday, December 31, 1996

1 US Dollar = 0.5883 British Pound 1 British Pound (GBP) = 1.6998 US Dollar (USD)

Median price was 0.5883 / 0.5886 (bid/ask). Minimum price was 0.5823 / 0.5826 Maximum price was 0.5916 / 0.5920 75% of the prices were above 0.5842 / 0.5845 and below 0.5906 / 0.5909 Computed from a sample of 1703 prices on Tuesday, December 31, 1996


1 French Franc = 0.1124 British Pound 1 British Pound (GBP) = 8.8968 French Franc (FRF)



1 German Mark = 0.3794 British Pound 1 British Pound (GBP) = 2.6357 German Mark (DEM)


164 Currency Converter ? 1997, by OANDA, Inc


1 Japanese Yen = 0.005060 British Pound

1 British Pound (GBP) = 197.628 Japanese Yen (JPY)


Directory of Questionnaire Variables (Variable Names in Bold Type) ID Day, Month, Year: Date of survey Missing data coded –9. 1. Organisation Structure 1.01 Basic organisational principle of the company (functional vs. product based structure) Missing data coded –9. Q01.01a. Direction and strength of product-based <------------no change-----------------> functional change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.01b. Influence of parent company 0 1 2 3 4 5 1.02 Levels in the hierarchy Missing data coded –9. Q01.02a. Direction and strength of fewer <---------------no change------------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.02b. Influence of parent company 0 1 2 3 4 5 1.03 Number of different specialised departments Missing data coded –9. Q01.03a. Direction and strength of fewer <---------------no change------------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.03b. Influence of parent company 0 1 2 3 4 5 1.04 Job rotation of managers between different functions (e.g. Operations to Personnel) Missing data coded –9. Q01.04a. Direction and strength of fewer <---------------no change------------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.04b. Influence of parent company 0 1 2 3 4 5

1.05 Total employment in the company Missing data coded –9. Q01.05a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.05b. Influence of parent company 0 1 2 3 4 5 1.06 Number of managers as a % of total employment Missing data coded –9. Q01.06a. Direction and strength of lower <---------------no change-----------------> higher change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.06b. Influence of parent company 0 1 2 3 4 5 1.07 Number of scientific or technically qualified staff as a % of total employment Missing data coded –9. Q01.07a. Direction and strength of lower <---------------no change-----------------> higher change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.07b. Influence of parent company 0 1 2 3 4 5 1.08 Emphasis on formal qualifications for selection and advancement Missing data coded –9. Q01.08a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.08b. Influence of parent company 0 1 2 3 4 5 1.09 Strategic decision-making centralisation/decentralisation Missing data coded –9. Q01.09a. Direction and strength of decentralised <------------no change-------------> centralised change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.09b. Influence of parent company 0 1 2 3 4 5

1.10 Operational decision-making centralisation/decentralisation Missing data coded –9. Q01.10a. Direction and strength of decentralised <------------no change-------------> centralised change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.10b. Influence of parent company 0 1 2 3 4 5 1.11 Approach to managerial decision-making - individual vs. collective Missing data coded –9. Q01.11a. Direction and strength of collective <-------------no change-------------> individual change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.11b. Influence of parent company 0 1 2 3 4 5 1.12 Prevalence of formal meetings Missing data coded –9. Q01.12a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.12b. Influence of parent company 0 1 2 3 4 5 1.13 Type of planning Missing data coded –9. Q01.13a. Direction and strength of less formalised <-----------no change----------> more formalised change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q01.13b. Influence of parent company 0 1 2 3 4 5

2. Control 2.01 Occupancy of key positions by parent company appointees Missing data coded –9; don’t know: -8. a. Please tick if any of the following positions (or their equivalent) are held by people from the parent company: (i.e. appointed by the parent company from among parent company staff or from new staff appointed by the parent company).

Data coded as follows: tick: 1; blank: 0. Q02.01a1. 1. CEO ...... Q02.01a2. 2. Financial Director ...... Q02.01a3. 3. Operations Director ...... Q02.01a4. 4. Sales and Marketing Director ...... Q02.01a5. 5. R&D Director ...... Q02.01a6. 6. HRM ...... Q02.01a7. 7. Others reporting directly to the CEO (please specify) .............................................. Q02.01b b. Was a new CEO appointed after the acquisition? Yes / No (please circle)

Data coded as follows: yes: 1; no: 0. c. If, “yes”, did the appointee come from:

Data coded as follows: circled: 1; blank: 0; missing: -9; not applicable: -99. Q02.01c1 Q02.01c2 Q02.01c3 i) the acquired company ii) the parent company iii) he/she was a new (please circle) external appointment 2.02 Retention of specific key decisions by parent company Missing data coded –9; don’t know: -8. a. Please tick if any of the following decisions require final approval by the parent company :

Data coded as follows: tick: 1; blank: 0. Q02.02a1 1. Budgets ...... Q02.02a2 2. Capital expenditure ...... Q02.02a3 3. Appointment / termination of senior personnel ...... Q02.02a4 4. Acquisition/divestment ...... Q02.02a5 5. Formation of alliances (e.g. joint venture) ...... Q02.02a6 6. Major contractual agreement ...... Q02.02a7 7. Change in the scope/direction of company ...... Q02.02a8 8. Major new products ...... 2.03 Use of financial control systems Missing data coded –9. Q02.03a Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q02.03b Influence of parent company 0 1 2 3 4 5

3. Human Resource Management 3.01 Employment philosophy - recruitment & termination Missing data coded –9. Q03.01a. Direction and strength of short-term <--------------no change----------------> life-long change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q03.01b. Influence of parent company 0 1 2 3 4 5 3.02 Approach to career development Missing data coded –9. Q03.02a. Direction and strength of planned <-----------------no change-----------------> ad hoc change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q03.02b. Influence of parent company 0 1 2 3 4 5 3.03 Approach to promotion Missing data coded –9. Q03.03a. Direction and strength of slow <------------------no change-----------------> rapid change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q03.03b. Influence of parent company 0 1 2 3 4 5 3.04 Amount of training Missing data coded –9. Q03.04a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q03.04b. Influence of parent company 0 1 2 3 4 5 3.05 Nature of training - on-the-job vs. use of courses Missing data coded –9. Q03.05a. Direction and strength of on-the-job <---------------no change-------------> use of courses change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q03.05b. Influence of parent company 0 1 2 3 4 5

3.06 Reward systems Missing data coded –9. performance annual Q03.06a. Direction and strength of oriented <----------------no change----------------> increments change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q03.06b. Influence of parent company 0 1 2 3 4 5 4. Sales and Marketing Management 4.01 Channels of marketing intelligence Missing data coded –9. personal surveys and Q04.01a. Direction and strength of contacts <---------------no change-----------------> scanning change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q04.01b. Influence of parent company 0 1 2 3 4 5 4.02 Image projection Missing data coded –9. Q04.02a. Direction and strength of none <----------------no change----------------> strong change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q04.02b. Influence of parent company 0 1 2 3 4 5 4.03 Methods of distribution Missing data coded –9. Q04.03a. Direction and strength of sub-contracted <------------no change-----------> done internally change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q04.03b. Influence of parent company 0 1 2 3 4 5 4.04 Customer involvement in marketing decisions Missing data coded –9. Q04.04a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q04.04b. Influence of parent company 0 1 2 3 4 5

5. Communication 5.01 Philosophy Missing data coded –9. Q05.01a. Direction and strength of open<-----------------no change--------------> need to know change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q05.01b. Influence of parent company 0 1 2 3 4 5 5.02 Communication mechanisms Missing data coded –9. Q05.02a. Direction and strength of informal <----- -------no change---------------> formal change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q05.02b. Influence of parent company 0 1 2 3 4 5 6. R&D / Development of Products and Services (if applicable to your company) 6.01 Team-based or Sequential # Missing data/ not applicable coded –9. Q06.01a. Direction and strength of team-based <--------------no change-----------------> sequential change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q06.01b. Influence of parent company 0 1 2 3 4 5 # The system of working on several processes in the chain at the same time in a team versus the system of completing one process in the R&D/development chain before the next one is started. 7. Operations 7.01 Use of automation/IT Missing data coded –9. Q07.01a. Direction and strength of less automated <-------------no change----------->more automated change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q07.01b. Influence of parent company 0 1 2 3 4 5

7.02 Use of operations management techniques (if applicable to your company) Missing data/ not applicable coded –9; don’t know: -8. Please tick if any of the following techniques have been introduced since the acquisition: Data coded as follows: tick: 1; blank: 0. Q07.02a1. 1. JIT operation ...... Q07.02a2. 2. TQM ...... Q07.02a3. 3. Statistical process control ...... Q07.02a4. 4. Quality circles ...... Q07.02a5. 5. Operator/employee responsibility for quality ...... Q07.02a6. 6. Continuous improvement ...... Q07.02a7. 7. Group working/work teams ...... Q07.02a8. 8. Other (please mention)..................................................... Missing data/ not applicable coded –9. Q07.02b. Influence of parent company none very great on operational techniques used 0 1 2 3 4 5 7.03 Emphasis on managing the total supply chain (if applicable to your company) Missing data/ not applicable coded –9. Q07.03a. Direction and strength of less <------------------no change-----------------> more change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q07.03b. Influence of parent company 0 1 2 3 4 5 8. Procurement (if applicable to your company) 8.01 Multi source/single source Missing data/ not applicable coded –9. Q08.01a. Direction and strength of single-source <-------------no change---------------> multi-source change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q08.01b. Influence of parent company 0 1 2 3 4 5 8.02 Degree of outsourcing Missing data/ not applicable coded –9. Q08.02a. Direction and strength of low <-----------------no change------------------> high change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q08.02b. Influence of parent company 0 1 2 3 4 5

9. Company philosophy 9.01 Time horizon (Planning) Missing data coded –9. Q09.01a. Direction and strength of short-term <-------------no change---------------> long-term change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q09.01b. Influence of parent company 0 1 2 3 4 5 9.02 Financial Time horizon (e.g. Payback periods) Missing data coded –9. Q09.02a. Direction and strength of shorter <-------------no change----------------> longer change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q09.02b. Influence of parent company 0 1 2 3 4 5 9.03 Style and culture Missing data coded –9. Q09.03a. Direction and strength of bottom-up <--------------no change---------------> top-down change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q09.03b. Influence of parent company 0 1 2 3 4 5 9.04 Primary orientation Missing data coded –9. Q09.04a. Direction and strength of financial <---------------no change----------------> strategic change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q09.04b. Influence of parent company 0 1 2 3 4 5 10. Strategy 10.01 Competing on price Missing data coded –9. Q10.01a. Direction and strength of less emphasis <------------no change----------> greater emphasis change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q10.01b. Influence of parent company 0 1 2 3 4 5

10.02 Offering unique products/services Missing data coded –9. Q10.02a. Direction and strength of less emphasis <------------no change----------> greater emphasis change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q10.02b. Influence of parent company 0 1 2 3 4 5 10.03 Cost control Missing data coded –9. Q10.03a. Direction and strength of less emphasis <------------no change----------> greater emphasis change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q10.03b. Influence of parent company 0 1 2 3 4 5 10.04 Development of new products/services Missing data coded –9. Q10.04a. Direction and strength of less emphasis <------------no change----------> greater emphasis change since acquisition -3 -2 -1 0 +1 +2 +3 none very great Q10.04b. Influence of parent company 0 1 2 3 4 5 11. Overall Q11a. What have been the greatest overall changes brought about by the acquisition of the company? (please continue answer on the back of this page if necessary) Q11b. Which changes in the company’s management practice brought about by the acquisition do you consider have had the most impact on the company’s overall performance and has this impact been positive or negative? (please continue answer on the back of this page if necessary) Changes: Positive (+) / Negative (-) c. To the best of your knowledge, since its acquisition has your company’s position vis-à-vis its main competitors with respect to Profitability and Sales improved or worsened? Missing data coded –9. Q11c1. i.Profitability Worsened <------------no change-----------> Improved -3 -2 -1 0 +1 +2 +3 Q11c2. ii. Sales Worsened <------------no change-----------> Improved -3 -2 -1 0 +1 +2 +3

12. Background For questions requiring a numeric answer missing data have been coded as –9. Could you finally please just supply the following information which will help to make comparisons easier and more meaningful : Q12a. Name of acquired company : Confidential and not coded Q12b. Name of acquiring company : Confidential and not coded Q12c. Nationality of acquiring company : 1. Japanese 2. US 3. French 4. German 5. UK 6. Other........................ (please specify) Q12d. Date of acquisition : (Year) Q12e. Total employment of acquired company at time of acquisition : Q12f. Total current employment of acquired company : Q12g. Sales turnover of acquired company at time of acquisition : Q12h. Sales turnover (latest year) of acquired company : Q12i. Your job title in the company : Q12j. Date of joining acquired company : (Year) Q12k. Since the acquisition of your company, has it been involved in making any acquisitions or divestments itself: (1=YES, 0=NO) V13 Main Questionnaire = 1 Pilot Study = 0 V14 No. of Years between acquisition and reply to questionnaire (Year - Q12d) V15 Respondent joined company BEFORE acquisition = 0 (IfQ12j<Q12d then 0 else 1) Respondent joined company AFTER acquisition = 1 V16 Respondent Profitability on acquisition : At the time of the acquisition of your company / division by your parent company was your company / division : (Please tick/circle the appropriate category). A) Profitable ( and earning satisfactory returns ) [CODED = 1] B) Just Profitable ( but not earning satisfactory returns ) [CODED = 2] C) Not Profitable ( making losses ). [CODED = 3] Profitability is defined as Profit before tax and is intended to give an overall measure of the immediately perceptible financial health of the company / division prior to acquisition. V17 Respondent Profitability on acquisition : Profitable = 1 (Just Profitable/ Not Profitable = 0) V18 Respondent Profitability on acquisition : Just Profitable = 1 (Not Profitable / Profitable = 0) V19 Respondent Profitability on acquisition : Not Profitable = 1 (Just Profitable / Profitable = 0) V20 Interviewed = 1 Not Interviewed = 0

SIC80 SIC80 4 digit code SIC80Desc Brief description of SIC80 code H1L2S3 1=HiTech, 2=LoTech 3=Service sector HiTech 1=HiTech 0=not LoTech 1=LoTech 0=not Service 1=Service 0=not Par96TO$ 1996 Turnover of Parent ($) Par96STAFF 1996 Staff Numbers of Parent Source Source of 96 Data : FT-WWW is data from FT website (Excel Co. Data) Amadeus http://www.dafsa.fr Par96TO£ 1996 Turnover of Parent converted to £ using rate at 31/12/96 (from www.oanda.com) OSUHC One Source listing of UHCs (Ultimate Holding Companies)

Confidential and not coded OSUHCTO£ One Source UHC turnover in £

Management Practice Survey Total sample: 201

Question Name

Eligible to answer Cases included Missing cases Minimum Maximum

N N % N %DAY 201 189 94.0 12 6.0 1 31MONTH 201 189 94.0 12 6.0 1 11YEAR 201 201 100.0 0 0.0 1995 1996Q01.01A 201 197 98.0 4 2.0 -3 3Q01.01B 201 199 99.0 2 1.0 0 5Q01.02A 201 199 99.0 2 1.0 -3 3Q01.02B 201 198 98.5 3 1.5 0 5Q01.03A 201 199 99.0 2 1.0 -3 3Q01.03B 201 200 99.5 1 0.5 0 5Q01.04A 201 176 87.6 25 12.4 -3 3Q01.04B 201 175 87.1 26 12.9 0 5Q01.05A 201 199 99.0 2 1.0 -3 3Q01.05B 201 199 99.0 2 1.0 0 5Q01.06A 201 198 98.5 3 1.5 -3 3Q01.06B 201 199 99.0 2 1.0 0 5Q01.07A 201 199 99.0 2 1.0 -2 3Q01.07B 201 199 99.0 2 1.0 0 5Q01.08A 201 200 99.5 1 0.5 -3 3Q01.08B 201 198 98.5 3 1.5 0 5Q01.09A 201 198 98.5 3 1.5 -3 3Q01.09B 201 199 99.0 2 1.0 0 5Q01.10A 201 198 98.5 3 1.5 -3 3Q01.10B 201 199 99.0 2 1.0 0 5Q01.11A 201 200 99.5 1 0.5 -3 3Q01.11B 201 200 99.5 1 0.5 0 5Q01.12A 201 198 98.5 3 1.5 -3 3Q01.12B 201 200 99.5 1 0.5 0 5Q01.13A 201 192 95.5 9 4.5 -3 3Q01.13B 201 193 96.0 8 4.0 0 5Q02.01A1 201 141 70.1 60 29.9 0 1Q02.01A2 201 143 71.1 58 28.9 0 1Q02.01A3 201 143 71.1 58 28.9 0 1Q02.01A4 201 143 71.1 58 28.9 0 1Q02.01A5 201 144 71.6 57 28.4 0 1Q02.01A6 201 144 71.6 57 28.4 0 1Q02.01A7 201 145 72.1 56 27.9 0 1Q02.01B 201 193 96.0 8 4.0 0 1Q02.01C1 108 106 98.1 2 1.9 0 1Q02.01C2 108 106 98.1 2 1.9 0 1Q02.01C3 108 106 98.1 2 1.9 0 1Q02.02A1 201 197 98.0 4 2.0 0 1Q02.02A2 201 198 98.5 3 1.5 0 1Q02.02A3 201 198 98.5 3 1.5 0 1Q02.02A4 201 197 98.0 4 2.0 0 1Q02.02A5 201 198 98.5 3 1.5 0 1Q02.02A6 201 197 98.0 4 2.0 0 1Q02.02A7 201 198 98.5 3 1.5 0 1Q02.02A8 201 193 96.0 8 4.0 0 1Q02.03A 201 195 97.0 6 3.0 -3 3Q02.03B 201 200 99.5 1 0.5 0 5Q03.01A 201 199 99.0 2 1.0 -3 3Q03.01B 201 199 99.0 2 1.0 0 5Q03.02A 201 199 99.0 2 1.0 -3 3Q03.02B 201 199 99.0 2 1.0 0 5


Question Name


N N % N %Q03.03A 201 197 98.0 4 2.0 -3 2Q03.03B 201 197 98.0 4 2.0 0 5Q03.04A 201 199 99.0 2 1.0 -3 3Q03.04B 201 199 99.0 2 1.0 0 5Q03.05A 201 199 99.0 2 1.0 -3 3Q03.05B 201 197 98.0 4 2.0 0 5Q03.06A 201 198 98.5 3 1.5 -3 3Q03.06B 201 199 99.0 2 1.0 0 5Q04.01A 201 189 94.0 12 6.0 -3 3Q04.01B 201 186 92.5 15 7.5 0 5Q04.02A 201 199 99.0 2 1.0 -3 3Q04.02B 201 198 98.5 3 1.5 0 5Q04.03A 201 191 95.0 10 5.0 -3 3Q04.03B 201 190 94.5 11 5.5 0 5Q04.04A 201 190 94.5 11 5.5 -3 3Q04.04B 201 190 94.5 11 5.5 0 5Q05.01A 201 200 99.5 1 0.5 -3 3Q05.01B 201 200 99.5 1 0.5 0 5Q05.02A 201 196 97.5 5 2.5 -3 3Q05.02B 201 198 98.5 3 1.5 0 5Q06.01A 201 165 82.1 36 17.9 -3 3Q06.01B 201 165 82.1 36 17.9 0 5Q07.01A 201 196 97.5 5 2.5 -2 3Q07.01B 201 197 98.0 4 2.0 0 5Q07.02A1 201 155 77.1 46 22.9 0 1Q07.02A2 201 158 78.6 43 21.4 0 1Q07.02A3 201 156 77.6 45 22.4 0 1Q07.02A4 201 158 78.6 43 21.4 0 1Q07.02A5 201 158 78.6 43 21.4 0 1Q07.02A6 201 158 78.6 43 21.4 0 1Q07.02A7 201 158 78.6 43 21.4 0 1Q07.02A8 201 159 79.1 42 20.9 0 1Q07.02B 201 174 86.6 27 13.4 0 5Q07.03A 201 156 77.6 45 22.4 -3 3Q07.03B 201 157 78.1 44 21.9 0 5Q08.01A 201 170 84.6 31 15.4 -3 3Q08.01B 201 171 85.1 30 14.9 0 5Q08.02A 201 174 86.6 27 13.4 -3 3Q08.02B 201 171 85.1 30 14.9 0 5Q09.01A 201 200 99.5 1 0.5 -3 3Q09.01B 201 201 100.0 0 0.0 0 5Q09.02A 201 175 87.1 26 12.9 -3 3Q09.02B 201 174 86.6 27 13.4 0 5Q09.03A 201 189 94.0 12 6.0 -3 3Q09.03B 201 190 94.5 11 5.5 0 5Q09.04A 201 172 85.6 29 14.4 -3 3Q09.04B 201 172 85.6 29 14.4 0 5Q10.01A 201 187 93.0 14 7.0 -3 3Q10.01B 201 188 93.5 13 6.5 0 5Q10.02A 201 188 93.5 13 6.5 -3 3Q10.02B 201 189 94.0 12 6.0 0 5Q10.03A 201 191 95.0 10 5.0 -3 3Q10.03B 201 192 95.5 9 4.5 0 5Q10.04A 201 187 93.0 14 7.0 -3 3


Question Name


N N % N %Q10.04B 201 188 93.5 13 6.5 0 5Q11A 201 139 69.2 62 30.8 - -Q11B 201 139 69.2 62 30.8 - -Q11C1 201 169 84.1 32 15.9 -3 3Q11C2 201 168 83.6 33 16.4 -3 3Q12A 201 201 100.0 0 0.0 - -Q12B 201 201 100.0 0 0.0 - -Q12C 201 201 100.0 0 0.0 1 5Q12D 201 200 99.5 1 0.5 1984 1994Q12E 201 181 90.0 20 10.0 5 12,000Q12F 201 191 95.0 10 5.0 6 9,000Q12G 201 160 79.6 41 20.4 200,000 1,200,000,000Q12H 201 170 84.6 31 15.4 368,000 1,500,000,000Q12I 201 195 97.0 6 3.0 - -Q12J 201 175 87.1 26 12.9 1955 1996Q12K 201 171 85.1 30 14.9 0 1V13 201 201 100.0 0 0.0 0 1V14 201 200 99.5 1 0.5 2 12V15 201 175 87.1 26 12.9 0 1V16 201 136 67.7 65 32.3 1 3V17 201 136 67.7 65 32.3 0 1V18 201 136 67.7 65 32.3 0 1V19 201 136 67.7 65 32.3 0 1V20 201 201 100.0 0 0.0 0 1SIC80 201 200 99.5 1 0.5 1,300 9,741SIC80DES 201 200 99.5 1 0.5 - -H1L2S3 201 201 100.0 0 0.0 1 3HITECH 201 201 100.0 0 0.0 0 1LOTECH 201 201 100.0 0 0.0 0 1SERVICE 201 201 100.0 0 0.0 0 1PAR96TO$ 201 130 64.7 71 35.3 38,224 167,725,300,000PAR96STAFF 201 112 55.7 89 44.3 39 378,800SOURCE 201 133 66.2 68 33.8 - -PAR96TO£ 201 131 65.2 70 34.8 22,487 98,672,793,990OSUHC 201 201 100.0 0 0.0 - -OSUHCTO£ 201 120 59.7 81 40.3 296,000 4,477,700,000

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Sampling Information

It was decided to confine the investigation to acquisitions made by US,Japanese, German and French companies. Furthermore, only acquisitionsoccurring in the period between 1 Jan 1985 and 31 December 1994 weresampled. This procedure had the advantage, firstly, of including only FDI caseswhere reasonable recall of the pre-and post-acquisition situations was possible.Secondly, it meant that only acquisitions more than two years old were included,so that changes would have had a chance to be implemented. The addition of theUK as one of the acquirer countries allowed for the possibility of distinguishingbetween general acquisition effects and those specifically associated with theforeign nationality of acquirers.

A collation of data from several sources indicates the number of FDI-relatedactivities (projects) by US, Japanese, German and French companies. Thesources used are activities recorded in the British press and recorded on theReuters Textline data-base, activities recorded by the Invest in Britain Bureau ofthe DTI, and activities recorded by the Central Statistical Office. An analysis fromthese sources was conducted by the authors in 1995, covering the periodJanuary 1, 1985 to December 31, 1994. This identified a total of 1,422independent activities during the period which took the form of new acquisitions,joint venture formations, collaborations or consortia involving foreign investment,but excluded greenfield developments or expansions of existing facilities. A list of1122 acquisitions identified was subsequently augmented by 148 further relevantacquisitions from data in the journal Acquisitions Monthly; the same journal alsofurnished information on UK:UK acquisitions during the period of study.

From the list of acquisitions, a nationally stratified sample of 50 companies wasselected for use in the pilot survey. The response rate from this mailing was 36per cent which, together with comparable data from the ten initial interview-administered questionnaires, gave 24 usable questionnaires. The split amongnationalities of these replies was Japanese eight, US four, French four, Germaneight. The success of this stage prompted the move to a fuller survey.

As mentioned above, there were many companies in the population for which itproved impossible to gain sufficiently precise identification, despite considerablesearching. There had, for example, often been name changes to parents and/orsubsidiaries. It was eventually possible, however, to mail questionnaires to afurther 844 companies, of which 576 had US, Japanese, French and Germanacquirers, and 268 had UK acquirers. We requested that a named managershould complete the questionnaires. We normally approached the managingdirector of the acquired subsidiary in order to obtain a view on change across thefull range of management practices, or another senior manager if the MD did nothave sufficient experience of the period since acquisition. The response, plus thepilot questionnaires and the comparable data from the initial ten questionnaires,gave a total of 201 usable questionnaire replies, or 22.5 per cent of all

2

administered. The usable questionnaires were split amongst the nationalities asfollows: US 69, Japanese 29, French 32, German 21, UK 50. It is worth notingthat in addition to the 201 usable replies, we received 40 refusals and 112 repliesindicating that the company for some reason fell outside the scope of theintended sample. The unusable replies came from companies acquired outsidethe time period, or of nationality other than one of the five in question, or whichproved not to involve a straightforward acquisition. Their high number againillustrates the difficulties of identifying relevant acquisitions from publicly availabledata.

questionnaire extent of change in management practice since acquisition and influence...

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