Facts In September 1995

There was question as to whether these two organizations would have the ability to mind beneficial success with the acquisition and ensuing strategy. II. Summary of the Facts In September 1995 the world?¬was largest global management consulting firm, A. T. Carney was acquired by Electronic Data Systems (DES), an information technology firm. The merging of the two organizations raised a lot of questions and issues.

?¬C How will both strategic consulting and information solutions be provided to clients ?¬ Is It beneficial to sell the services between the two firms ?¬C Will the two firms share their current clientele Will the two firms work together to acquire new clientele Will a completely ewe compensation program be introduced a?¬C What Is the strategy to prevent overlapping or overstepping of specific products/ services or projects Once the president of A. T. Carney (Canada) has addressed the issues in his upcoming meeting, the issue of sales management can be addressed.

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It is necessary to for sales management decisions to be a direct result of the marketing strategy. Ill.

Analysis A. T. Carney is a global management consulting firm using strategic insight. The firm uses customization In order to ensure that they are assisting their clients to achieve sustainable results while working with them In collaboration. A. T.

Carney has a long reputable history of trust which Is why some of the world??¬was leading organizations, covering many different Industries use their consulting services (“AT Carney,” 2012).

DES is a leader in the management of information technology: designing, installing and operating data processing systems for clients within the automobile, communications, government, financial and other industries. DES is an innovator in facilities management and actually was the founder of long term, fixed rising contracts within the industry (“Electronic data systems,” n. D. ).

In deciding how to provide the services that each of the firms has to offer to existing and potential customers; the purchase of A. T. Carney by DES and subsequent merge with Management Consulting Services (MASC.) was considered a favorable match.

The strength of the merge was due to the synergistic and similar industry, functional, and geographic strengths. A.

T. Carney had a strategy and high value added organization consulting, while MASC.??¬was strengths were In operational and technological consulting; this was a strong match. Add to the consulting strengths was the fact that there was now a well positioned global organization in place Tanat would nave ten addle TTY to service clients all over ten gloom. I Carney was quite strong in manufacturing; MASC.

on the other hand had great strength within the communications and electronics industries (Spiro, 2007).

Due to the fact that each of these firms were leaders in their prospective industries it was felt that the markets were demanding an integration of the business and technology systems; DES holding the information technology lead and A. T. Carney as a global management consulting firm. Would the combined services, skills and leading edge solutions of DES and A. T.

Carney be a significant benefit to their respective clients? Most likely by combining the services, skills, and solutions, each firm would have the ability to sell their services to one another?¬was clientele.

While the merge may have seemed like a successful idea, consultants as well as clients were second guessing the acquisition. Consultants were worried about the vertically integrating of services due to the fact that the consulting culture of MASC. was entirely different from that of A. T. Carney.

This in part was due to the fact that A. T. Carney had been in business for many, many successful years, while MASC. only a handful. Another concern was the merging of the actual consultants in that it is extremely difficult to combine two organizations and expect there to be instant success.

Consultants from A. T. Carney also felt as if they were independent and essentially had free reign to do their Job; however due to the merge they would be a mere speck within a extremely large organization (Spiro, 2007). Following is a SOOT analysis with a breakdown of the strengths, weaknesses, opportunities and threats that would come with the margining of DES and A. T.

Carney. Based on the SOOT analysis and the information that was gathered throughout the analysis section, recommendations have been formed. IV.

Recommendations There are many issues that arise due to the merging/ acquisition of two organizations. Combine the fact that one is a global leader in IT and the other a global leader in consulting, the changes can be major. Following is the recommendations which are based off of the information received and analyzed through research and study.

1. Both organizations will have the same strategy and oils in mind; this will ensure that there is an understanding of what the plan or mission is and how it will be achieved 2. Cross selling will occur.

Consultants will receive compensation through different incentive programs such as stock options, and/or equity bonus?¬w. This will require training in selling not only the product but more importantly the client. Compensation should also be aligned with the growth of the organization to encourage the consultants.

3. DES and A. T. Carney will work together to find new clients. With the merger, current customers will benefit from he new and expanded products and services. This will be an excellent way to secure new clients while cross selling to current clients.

. Team building between the two organizations Is Imperative In order to ensure a smooth merger Tanat wall not negatively affect the organization, the employees, the vendors, and the customers. Ensuring that all team members are on the same page in regard to the company mission, values and strategy is essential. 5. Communication from the top down is vital.

Ensuring all employees as to the potential changes and when they will occur is important. Employees who feel as if they are a part of the step by step change are usually more flexible and comfortable with the change.

Obviously there will be some who will not be happy, no matter what management says or does. Knowing expectations and the transition plan will make for a better team. It is also important to listen to employees concerns as well.

6. It is vital for the financial, accounting, and sales management teams to align from each organization. There will be clients that will only use the services of one of the firms while there may be clients that use he services/products of both of the firms. Eventually combining the financial, accounting and sales into one entity will benefit the merger of these two organizations.

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