Peninsular Insurance Report on Leadership Change

Peninsular Insurance Report on Leadership Change

Based on a case study

Peninsular Insurance Report on

Leadership Change

Based on a case study

Prepared for

Mrs. Sevasti Kessapidu, Professor

American College of Thessaloniki

Vasiliou Sevenidi 17

Thessaloniki 555 35 - Greece

Prepared by

Elsa Exintaveloni

Adonis Chrysos

Eleni-Nora Kerasidou

March 10, 2017

Executive Summary

New Zealand Insurance Company (NZI) and Peninsular Insurance (VMI) agreed to merge with the aim to reduce costs to follow Malaysia’s economy growth.

Despite the well planed merger the VMI’s general Manager, Patrick Wale placed to supervise the merger project face some issues that overwhelmed the merger processes.

This report provides a presentation of the issues Patrick Wale faces related them with several aspects of local political and cultural norms and habits.

We present summarized the culture of Malaysia and influences on personalities threating the merger and impact the completeness of project, as the cause of not a so effective consideration of Malaysian’s Culture differences.

In brief the merger process of the two companies was run at slow progress caused by several issues as Malaysian Bureaucracy, politics related to foreign companies, distance power and sensibility of local managers respecting to elders positions and personal treatment.

Despite Patrick Wale consider himself as suitable to supervise the merger project, it is evident that he didn’t manage to overpass key issues, as he didn’t react at time recognizing immediately what the problem was and giving an appropriate solution. On contrary he was loosing time waiting the fierce Malayan bureaucracy give the solution. Peninsular Insurance’s Chairman of the Board was a 73 YO former high ranked public employee recently retired who has adapted completely the Malaysian bureaucracy, was a very sensitive person respect cultural issues and formal protocols and he didn’t facilitate at all to overpass issues, including he make some of them worse.

Purpose and Objectives of this Report

Incidentals of Authorization and Submittal

This case study of Peninsular Insurance is submitted to Dr. Sevasti Kessapidou, instructor of Leadership Communication Skills course, on March 10, 2017.

Objective of case study analysis

The objective of the report was to analyze and evaluate the problems of merger New Zealand Insurance Corporation (NZI) and Peninsular Insurance Company at Malaysia, regarding the case study prepared by James M. Berger at ’92. To achieve this purpose, the plan involved first determining the problems significant from a leadership perspective Patrick Wale, the person indicated to supervise the project, encountered and then evaluating them under a critical point of view.

Use of observational techniques

The methodology used in this report was a well understanding of the case presented by J.M. Berger and information research analysis based on:

1. An extensive internet research, in order to understand all the cultural aspect related to this crisis from a leadership perspective. This research was made by scrutinizing

1. Document provided by J.M. Berger
2. Malaysia’s  culture and work websites that reported all these statements
3. Malaysia’s economic related websites.

1. Critical analysis based on case oriented articles and experts’ editorials.

A Preview of the Report

In order to analyze and evaluate the issues of merger New Zealand Insurance Company (NZI) and Peninsular Insurance, in the following pages an extensive analysis and evaluation of various aspects related with these issues will be presented. First, there will be an summarized analysis of the problems of merger, and how these problems are related with various aspects of Malaysian Culture. I The focus will be on the way local culture affect merger delay scrutinizing their key elements and their relationship to the business development.  Second follows a critical Review and evaluation analysis of Patrick Wale’s reactions to take the control of the whole situation. Finally, the report will conclude with overview of Wales behavior critique and recommendations.

        Table of Contents

Executive Summary        iii

Purpose and Objectives of this Report        iv

Incidentals of Authorization and Submittal        iv

Objective of case study analysis        iv

Use of observational techniques        iv

A Preview of the Report        iv

1.        Merging two companies in Malaysia        1

1.1.        Background        1

1.2.        NZI in Malaysia        1

1.3.        The merger Plan        1

2.        The Problem Unfolds        2

3.        Critical Review        2

3.1.        Merger Progress Delay        2

3.2.        Malaysian Culture        3

3.3.        Power Distance        4

3.4.        Peninsular Insurance Chairman        4

3.5.        An influent wife        4

3.6.        Respect by “Save Face”        4

3.7.        Malaysian Bureaucracy        5

3.8.        A visit from Home        5

4.        Conclusion        5

References        6

1. Merging two companies in Malaysia
   

1. Background

New Zealand Insurance Corporation (NZI) was a financial services company based in Auckland New Zealand.

It was one of the largest companies in the country, which emerged in 1981 after the merger of Zealand Insurance  and South British Insurance Company. Both were activated in the insurance industry from much earlier. The new company resulting from the merger of the two was a multinational figure with operations in 24 countries around the world and hundreds of offices.