Integration Through Framing a Study of the Cloetta Fazer Merger
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Integration through framing A study of the Cloetta Fazer merger Cecilia Bjursell Linköping Studies in Arts and Science No. 390 Linköpings universitet, Department of Management and Engineering Linköping 2007 Linköping Studies in Arts and Science • No. 390 At the Faculty of Arts and Science at Linköpings universitet, research and doctoral studies are carried out within broad problem areas. Research is organized in interdisciplinary research environments and doctoral studies mainly in graduate schools. Jointly, they publish the series Linköping Studies in Arts and Science. This thesis comes from the division of Business Administration at the Department of Management and Engineering. Distributed by: Department of Management and Engineering Linköpings universitet SE - 581 83 Linköping Cecilia Bjursell Integration through framing – A study of the Cloetta Fazer merger Upplaga 1:1 ISBN 978-91-85831-65-4 ISSN 0282-9800 © Cecilia Bjursell Department of Management and Engineering Printed by LIU-Tryck, 2007. 2 3 4 I would like to thank … … my supervisors Bo Hellgren and Sten Jönsson. Bosse, you gave me freedom to explore the empirical and theoretical world during my years as a doctoral student. Sten, you understood what I wanted to do and provided theoretical input that set me off in new directions and you were there when I needed feedback to keep going. … all my colleagues, and especially Rebecca Stenberg, Jonas Söderlund and Fredrik Tell. You came in as readers during the last year to help with the material in different ways. Fredrik, you really made an effort to help me during the last critical weeks. Thanks also to Pamela Vang, Helena Chirinian and Brittmarie Genet for proofreading the text. I would also like to mention the Brighton group: Marie Bengtsson, Karin Bredin, Cecilia Enberg, Åsa Käfling, Anna Larsson and Linnea Wahlstedt. You made it fun to go to work. Last but not least, I would also like to thank the lunch group: Åsa Käfling, Helén Forslind and Sarah Wikner. You have become dear friends and we have had so much fun together. … Dan Kärreman. Your constructive comments on a final draft gave me great inspiration and took the manuscript to a new level. … my financiers, Jan Wallander’s and Tom Hedelius’ Foundation for Social Science Research, Östgöta Gille for the scholarship that I received, and Lars Bjursell for technical equipment. … the participants in the research programme mergers@work: Bo Hellgren, Markus Ejenäs, Åsa Käfling, Jan Löwstedt, Annika Schilling, Svante Schriber, Marie Tomicic and Andreas Werr. … all the people at Cloetta Fazer. You made this study possible and shared your experiences with me. A special thanks to my contact person Kenneth Söderholm. You always made time for me even though you had a lot to do. … family, friends and above all, my daughter Olivia, for reminding me that there is more to life than academic matters. A special thanks to my parents, Lars and Marie. You have always believed in my potential and supported my personal development. … my husband Peter. For so many years now you have provided a happy and loving home where I can gather strength. This has been the most important ingredient in my being able to complete this thesis. I hope that we will have many happy, loving years to come. 5 6 PROLOGUE .......................................................................................................... 13 AND THEY LIVED HAPPILY EVER AFTER? ............................................................. 15 WHEN TWO BECOME ONE..................................................................................... 16 Conditions for living together ......................................................................... 16 Finding a shared way of working.................................................................... 17 Setting up an arena for integration ................................................................. 18 “WHAT IS IT THAT’S GOING ON HERE?” ............................................................... 19 What does it mean to integrate?...................................................................... 19 Integration as acculturation............................................................................ 19 Framing in the integration discourse.............................................................. 20 THE PURPOSE OF THE STUDY................................................................................ 21 A FEW WORDS ABOUT THE STYLE OF THE THESIS ................................................ 21 THE OUTLINE OF THE THESIS................................................................................ 22 INTRODUCING CLOETTA AND FAZER....................................................... 25 ONCE UPON A TIME … ........................................................................................ 27 CLOETTA – THE SWEDISH COUNTRY COUSIN ON THE MOVE................................ 28 FAZER – THE COLOR IS BLUE IN FINNISH HIGH SOCIETY ...................................... 29 GEOGRAPHICAL PRESENCE .................................................................................. 30 The five production sites.................................................................................. 31 Production unit: Gdansk, Poland.................................................................... 31 Production unit: Norrköping, Sweden............................................................. 33 Production unit: Villmanstrand (Lappeenranta), Finland.............................. 34 ARRANGING THE MARRIAGE ................................................................................ 36 SUMMARY OF “INTRODUCING CLOETTA AND FAZER”......................................... 37 This chapter in short: to give a historical and geographical context ............. 37 Reflecting on integration ................................................................................. 37 THE POST-MERGER INTEGRATION PROCESS ........................................ 39 THE FIRST PHASE OF INTEGRATION ...................................................................... 41 Rapid integration to achieve synergies ........................................................... 41 Integration frameworks ................................................................................... 44 Socio-cultural and structural integration in Cloetta Fazer ............................ 48 THE SECOND PHASE OF INTEGRATION.................................................................. 49 From hard to soft issues: possible dysfunctions on the soft side .................... 49 Integration of culture, identity and brands ..................................................... 50 Functional cultures.......................................................................................... 51 SUMMARY OF “THE POST-MERGER INTEGRATION PROCESS” ............................... 52 This chapter in short: to give a context to the Business Academy meetings... 52 A chronological summary of the post-merger integration process................. 53 Reflecting on integration ................................................................................. 55 CREATING A SHARED FRAME OF REFERENCE...................................... 57 THE NEED FOR A SHARED FRAME OF REFERENCE................................................. 59 Communication as an integration barrier....................................................... 59 One organization, two masters........................................................................ 60 Culture as a useful empirical concept............................................................. 61 FROM CULTURE TO LANGUAGE ............................................................................ 62 Integration as discourse .................................................................................. 62 The choice of national language ..................................................................... 63 Creating a shared language ............................................................................ 64 Replacing organizational dialects................................................................... 65 ORGANIZATION AS A COLLABORATIVE DISCOURSE ............................................. 67 The integration process as a social construction............................................ 67 Organization as content, context and process................................................. 67 Management work is communication.............................................................. 68 FRAMES IN INTEGRATION COMMUNICATION........................................................ 69 The frame concept ........................................................................................... 69 Cognitive or social frames?............................................................................. 70 Framing change............................................................................................... 70 Managerial framing activities ......................................................................... 71 SUMMARY OF “CREATING A SHARED FRAME OF REFERENCE” ............................. 73 This chapter in short: organization as communication................................... 73 Reflecting on integration ................................................................................. 73 PRE-MERGER FRAMES.................................................................................... 75 CULTURE AS A USEFUL FRAME DURING INTEGRATION ........................................ 77 NATIONAL CULTURE