Lingyun Acquires GSB (B)

This case is a supplement to Lingyun Acquires GSB (A). It details events as Lingyun took control of GSB in 2007. It provides a rich basis for discussing the integration process, including both changes in organizational structure and challenges of merging organizational cultures. In contrast to the positive expectations before the acquisition, the takeover team encountered many unexpected problems in the following six months. The original GSB staff and management team had different mindsets and behavior models from Lingyun’s staff. In addition to the integration issues, senior leaders of Lingyun also had to make significant changes in GSB’s five-star hotel operations in order to regain its competitiveness in the Guangzhou market.