From Traditional Marketplace To Tommorows Marketspace Essay
From Traditional Marketplace, To Tommorows Marketspace Essay, Research Paper
Focusing on past mergers that were unsuccessful, we will investigate the major cultural issues these companies faced that were the biggest obstacles jeopardizing their success. We will then be able to identify which cultural issues are most important for mergers of the future to succeed. The second part of our paper will talk about virtual conferencing, and the large position it will play in tomorrow’s teams. Bringing this together, our discussion will focus on the positive and negative effects virtual teams can have on a merging company’s culture. After presenting both sides, our ultimate goal will be to cite the more important roles the virtual teams of tomorrow must play, in efforts to create and maintain a strong and successful common culture among merging companies.
The increase of Internet usage, combined with the latest e-commerce craze has changed the way most companies are doing business today (Knox 26). Companies that are not in the dot-com domain now desire to take part in the e-commerce world. Many industries are moving their business from the traditional marketplace to the highly sophisticated marketspace; the AOL/Time Warner merger is an example of this.
Today, merging has become the answer to how businesses are going to increase and retain their competitive advantage. Once a company merges it becomes an even bigger powerhouse. This raises one company’s market share tremendously, allowing it to stand tall against competing firms (Fairlamb 20). Now, other companies in the same industry need to search harder to reestablish their competitive niche. This is done most of the time through additional acquisitions of similar competing firms within the industry.
Unfortunately a lot of mergers are doomed for failure. While sales figures and bottom lines play a big part in the execution of a successful merger, they are only one piece of the puzzle (qtd. in Pacific). Along with number crunching comes culture, the true heart of the company. Every company’s culture is unique. Different personalities, ways of doing things, expectations, and ways of defining success are some examples. Even the information technology a company possesses is as much a part of a company’s culture, as the people using it.
Bringing together two or more companies that may have entirely different corporate culture forms an acquisition. With technologies latest advancement, companies have the ability to be brought together on an entirely new plateau. Virtual conferencing is redefining the way people are able to work together (Seanet). Through virtual teams people can primarily interact electronically. There are several reasons to create virtual teams. Specifically, teams may be distributed because of the new realities facing organizations such as: organization-wide projects or initiatives, and alliances with different organizations, some of which may be in other countries. There are also mergers and acquisitions, which we will pay close attention to, as well as the desire of many people and government organizations for telecommuting. These are a few of the many reasons why people will look to create virtual teams as their primary way of conducting business.
Functional integration teams charged with the idea of knitting together two or three preexisting functions usually leads to turf protection, infighting, and special interest pleading. Planning for success, a lot of companies use a creation approach. Creating a comprehensive future-centered vision and strategy that defines the new organization. Together a new set of cultural behaviors and norms will be develop that are consistent with the accomplishment of the strategic goals, as well as creating a workforce passionately committed to the new organization’s values, vision, objectives and ultimate success.
There are many reasons why we chose virtual conferencing and how it will effect the important aspects of culture within merging companies. As future business people of America this is an issue that we will be faced with. In a time when job security seems to be approaching an all time low, it is important to know what we are going to be up against. Having a better idea of what is happening around us will be useful as we troop forward in efforts to create our own niche in this extremely competitive world. While this is a required project for us, we feel that we should take it for everything that it is worth, bettering ourselves as a result.
1. Knox, Noelle. “Internet Marketplace Takes Shape at a Dizzying Pace.”
St. Louis Post 17 July 1999: 26.
2. Fairlamb, David. “A New Giant Will Reshape World Finance.”
Business Week 20 March 2000: 20-23.
3. “Mergers Success.” Pacific Management Institute.
11 March 2000. (www.mergersuccess.com)
4. “Virtual Organization.” Seanet. Revised 3 Jan. 2000.
13 March 2000. (www.seanet.com)