Mktg577 - Week 6 Case Study
I. Statement of the Problem
The analysis is based on the merger and acquisition between E.T Kearney and EDS. E.T Kearney is the largest management consulting group while EDS is a technology firm. The company’s merged to form a new defining entity that could combine the synergies of both firms in the quest for improved efficiency. The merger created a cultural shock which created problems that are associated with organizational culture change .In this paper, we analyze the merger and acquisition as well as the recommendations for better performance of the newly created entity.
II. Summary of the Facts
The acquisition of the management consulting firm A.T Kearney by an information technology firm EDS marked a significant move by such a technology firm in acquiring one of the best management firms in the corporate world. EDS bought A.T Kearney for a total of $300 million in liquid cash and contingency payments as well as a stock incentive provision of seven million shares. The total amount was more than $600 million. The merger between the two firms was good as a result of the synergetic as well as complimentary industry, geographic as well as functional strength. The acquisition of A.T Kearney by EDS was one of EDS grand vision of becoming a “Defining Entity”.
III. Analysis
An analysis of the case reveals that the merger and acquisition greatly impacts organizational performance and organizational culture. Our analysis covers the effects of mergers and acquisition on an organizational performance, success factors in M&A as well as organizational culture change and resistance that take place in a merger and acquisition.
The strategies of a successful M& A
For A.T Kearney by EDS to merge successfully, there is a need for the process to be conducted smoothly. From the A.T Kearney by EDS case, we realized that the integration of the firms that has been acquired should be carried out as an ongoing process that must be initiated prior to the
The analysis is based on the merger and acquisition between E.T Kearney and EDS. E.T Kearney is the largest management consulting group while EDS is a technology firm. The company’s merged to form a new defining entity that could combine the synergies of both firms in the quest for improved efficiency. The merger created a cultural shock which created problems that are associated with organizational culture change .In this paper, we analyze the merger and acquisition as well as the recommendations for better performance of the newly created entity.
II. Summary of the Facts
The acquisition of the management consulting firm A.T Kearney by an information technology firm EDS marked a significant move by such a technology firm in acquiring one of the best management firms in the corporate world. EDS bought A.T Kearney for a total of $300 million in liquid cash and contingency payments as well as a stock incentive provision of seven million shares. The total amount was more than $600 million. The merger between the two firms was good as a result of the synergetic as well as complimentary industry, geographic as well as functional strength. The acquisition of A.T Kearney by EDS was one of EDS grand vision of becoming a “Defining Entity”.
III. Analysis
An analysis of the case reveals that the merger and acquisition greatly impacts organizational performance and organizational culture. Our analysis covers the effects of mergers and acquisition on an organizational performance, success factors in M&A as well as organizational culture change and resistance that take place in a merger and acquisition.
The strategies of a successful M& A
For A.T Kearney by EDS to merge successfully, there is a need for the process to be conducted smoothly. From the A.T Kearney by EDS case, we realized that the integration of the firms that has been acquired should be carried out as an ongoing process that must be initiated prior to the
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