Global stumble is a case study of American company Lehmann which was acquired by Japanese company Nomura after the financial crisis of 2008. This PPT reflects what problems arises during the acquisition.

1. GLOBAL
STUMBLE
NOMURA ACQUIRED LEHMAN

2. Content Layout
• Q1: WHAT OBVIOUS CULTURAL DIFFERENCES BETWEEN NOMURA AND
LEHMAN DO YOU SEE IN THIS SITUATION?
• Q2: WHAT GLOBAL ATTITUDE DO YOU THINK CHARACTERIXES
NOMURA? BE SPECIFIC IN YOUR DECISION. DO YOU SEE ANY EVIDENCE
OF THAT CHANGING?
• Q3: DO SOME CULTURAL RESEARCH ON JAPAN AND THE UNITED
STATES. COMPARE THOSE CULTURAL CHARACTERISTICS. WHAT
DIFFERENCES AND SIMILARITIES EXIST? HOW MIGHT THESE CULTURAL
DIFFERENCES BE AFFECTING THE SITUATION AT NOMURA?
• Q4: WHAT COULD NOMURA MANAGERS DO TO SUPPORT, PROMOTE
AND ENCOURAGE CULTURAL AWARENESS AMONG EMPLOYEES?
EXPLAIN.
• Q5: WHAT DO YOU THINK THE STATEMENT, “ WHEN YOUR BUSINESS IS
GLOBAL, MANAGEMENT NEEDS TO BE GLOBAL “, IS SAYING? IN YOUR
OPINION, IS NOMURA DOING THIS? EXPLAIN.

3. OVERVIEW
• In late 2008, Nomura bought Lehman to
expand its business.
• Cultural and business differences between the
two organizations became a major stumbling
block.

4. Q1: WHAT OBVIOUS CULTURAL DIFFERENCES BETWEEN
NOMURA AND LEHMAN DO YOU SEE IN THIS SITUATION?
• The basic difference between these two companies was cultural difference.
Nomura was a Tokyo centric company, employees all were Japanese. Whereas,
Lehman had mixed nationalities as American based companies have.
• In Nomura, work culture, dressing weren’t similar. Lehman was like a open
place where they emphasize more on performance rather than dressing. We can
see that both the companies reflect their country’s culture and society.
• Nomura had strict discipline and code of values over dressing. On the other
hand, Lehman didn’t force their employees over dressing. Women in Lehman
were told to remove highlights, to wear sleeve no shorter than mid bicep and no
bright colored clothes.
• Nomura gave more priority to their loyal customers whereas Lehman
categorized their customers based on the fees they paid. They were ready to
dump their old loyal customers over money. Lehman’s bankers also faced
difficulty to getting their approvals done.

5. • Nomura had global attitude because they wanted to do business globally.
That’s why they acquired Lehman.
• After that, 8000 non-Japanese workers were added to workforce.
• When tensions were arising in the company, they had tried to tackle that
problem. Nomura tried every possible thing to blend culture in the
workplace.
• A handful of non-Japanese were promoted to higher ranking positions.
• To reduce their Tokyo-centric nature, one of the top most management
offices were shifted to international cities.
• Not only that an ex-Lehman executive and foreigner who was an Indian
was promoted to the committee in order to make company globally
oriented.
Q2: WHAT GLOBAL ATTITUDE DO YOU THINK CHARACTERIXES
NOMURA? BE SPECIFIC IN YOUR DECISION. DO YOU SEE ANY EVIDENCE
OF THAT CHANGING?

6. Q3: DO SOME CULTURAL RESEARCH ON JAPAN AND THE UNITED STATES.
COMPARE THOSE CULTURAL CHARACTERISTICS. WHAT DIFFERENCES AND
SIMILARITIES EXIST? HOW MIGHT THESE CULTURAL DIFFERENCES BE
AFFECTING THE SITUATION AT NOMURA?
 DIFFERENCES:
• Japanese culture is more formal than American culture.
• America has diverse racial demographics and Japan is predominantly Japanese.
• Japanese communication is subtle, whereas Americans tend to be blunt.
• Japanese gender roles are strict.
• Japan's culture is collectivist and America's is individualistic.
 SIMILARITIES:
One of the few aspects of similarity in their culture is that both are productive. Apart from
generalizing all Americans as party people is wrong otherwise we won’t be seeing any big
company or brand from America but the situation is opposite. American companies have
monopolized global market. Yes they do acquire global talent but that’s only side of the coin.

7. .
CULTURAL DIFFERENCES AFFECTING THE NOMURA:
There is a whole lot difference between Japanese and American
culture as discussed.
• Nomura had all Japanese workers while they tried to be global.
• Employees at Lehman had a very different approach towards their
customers because they are more capilistic than Japanese people.
• They prefer money over their loyal customers which was a
shocking fact for Nomura.

8. Q4: WHAT COULD NOMURA MANAGERS DO TO SUPPORT, PROMOTE
AND ENCOURAGE CULTURAL AWARENESS AMONG EMPLOYEES?
EXPLAIN.
Before getting into global market, Nomura’s top executives and market
research analysts should study American values and culture. In the start
they were enforcing them their Japanese working style on them which leads
to the decrease in productivity and unsatisfaction to the employees.
What values are important for Lehman’s employees, Nomura should be
aware of them. Following things they can do to encourage cultural
awareness.
 Bridge the culture gap with good communication skills
 Practice good manners
 Celebrate traditional holidays, festivals, and food
 Pay attention to differences in culture

9. Q5: WHAT DO YOU THINK THE STATEMENT, “ WHEN YOUR BUSINESS IS
GLOBAL, MANAGEMENT NEEDS TO BE GLOBAL “, IS SAYING? IN YOUR
OPINION, IS NOMURA DOING THIS? EXPLAIN.
EXPLANATION OF THE STATEMENT:
• This statement means that in order to become a global business you
need your employees and management to be aware of the world
and particularly from all over the world because they understand
the dynamics of that specific region more clearly than non-native.
• For example: someone is opening a new business in Pakistan, they
have to hire those individuals for their company who know
Pakistani market well. The circumstances and situations happening
in the country, they know very well, because they understand the
society and value of the countrymen than any other.

10. .
 WHAT WAS NOMURA DOING?
• Things weren’t good enough in the start as they implemented a new dress code
for the employees especially women.
• They then identified the American priorities as this was a good step.
• Nomura understood that need to understand the global dynamics and culture
in order to survive.
• Their top executive members opened or transferred their new offices in
international cities.
• They appointed non-Japanese in their top management and promoted foreigners
in the committee.
• In the end, Nomura was directing themselves in a right path. That’s why their
CEO said, “WHEN YOUR BUSINESS IS GLOBAL, MANAGEMENT NEEDS TO
BE GLOBAL”.