Abstract
Mergers and acquisitions (M & A) is a topic that has over the years generated much heat due to the surmounting number of cases of failure. Some critics have argued that failure can be attributed to misconceptions prior to mergers, wrongful strategies and tactics while others inability of most employees to acclimatize to the changes. For example, it is presumably argued in Sbeit that every worker gets affected when changes are effected in an organization. In some cases, the employees are quick to adapt to the changes that may potentially lead to great success in the merger while on the other hand inability by employees to comfortably adapt to the changes may see mass transit from the organization and potentially loosing indispensable employees to rival organizations. In this case study, Verizon, a formation through merger of previously approbate companies that long dominated various regions that included GTE Corp. and the Bell Atlantic Corp. The first section of the case study takes a keen look at the vision and mission of Verizon that is then followed by critique on external environment, opportunities and threats therein. This will be followed by an analysis of the opportunities and their benefits in the external environment and how the corporation can take advantage presented forthwith.
1. QUESTION 1
The most fundamental and basic definition of the vision and mission of Verizon can best be found in the words of Busch1 who noted that the company sort to make communication between people and businesses possible. Looking at the market portfolio of the organization as well as the products that the company had already rolled out into the market place, there is astounding evidence that there was heavy reliance on communications. For example, in Varettoni2, it is noted that the company swanked of having a customer base of 78 million who had subscribed for access lines without counting those that has subscribed for wireless communications3. This is the best profile description of the company as at the time of merger in 2000.
As for the description of the Verizon’s mission and vision as of 2005, there seems to be a clear sense of expansion and more acquisition of companies that are strategically situated to bolster the company’s revenue. For example, it is noted that during the same period there was a quest to acquire MCI that came to fruition in 2006, enlisting in the Dow Jones Industrial Average and massive expansion strategies and increase in communication and systems sophistication4. In general, the mission and vision statement of the company reflected fastest available network in US as well as its increasing reliability and wide coverage5.
Currently, Verizon has expanded its tentacles to the unreached regions and specializing in more acquisition and laying down non-strategic assets to pave way for better expansion plans as well as strategic increase of its operating capital. The mission of the company is to remain the market giant in provision of communication for business enterprises and individuals through the company’s commitment to ensure customer, employees as well as investor satisfaction6. From the Verizon’s investment strategy, there is a clear indication of reliance on top quality services as a stratagem to increase customer base that is augmented by strong progress in customer-service and timely delivery of their promises7.
2. QUESTION 2
There also seems to be limited competitors in the regions of venture and thus a fast increase in customer base. However, there seems to be lag in holistically sweeping the streets clean in terms of collectively expanding and dominating regions that they would easily do so. For example, the shedding off of the internet yellow pages was an under sight opportunity that would have potentially created enormous amounts of revenue upon fine-tuning. By selling off this portion among other portions of Company Empire, it led to another company emerging that potentially brings in a level of competition to the organization and adversely affects its customer base daily. Although Verizon swaggers of having over 100 million customers using their services daily10, there is much more territory that needs exploration and concurring.
Another similar threat is posed by their choice to share acquisition of Alltel Corp. with AT & T that acquired a whopping 37.62 % of the shares, Atlantic Tele-network acquiring another 12.38 and thus leaving only 50 % of the merge to the company and thus a substantial decrease in potential market11.
3. QUESTION 3
According to Sbeit13, the fundamental importance that mergers have is the sole aspect of regional and international position for expansion and investment. This is made possible as the company is placed in a position for market penetration using the already built customer base like in the case of Viva! Vision TV on mobile sets.
There is also a need to improve the reward system for its employees as well as revitalization of decision making such that the employees have a platform where they can contribute ideas on organization expansion, investment, divestment, product change and the like and a separate reward system set apart for successfully implemented ideas that would boost employee zeal and investment in the organization.
Summary/ Conclusion
In summary, it is clear that in some cases, the employees are quick to adapt to the changes that may potentially lead to great success in the merger while on the other hand inability by employees to comfortably adapt to the changes may see mass transit from the organization and potentially loosing indispensable employees to rival organizations. In this case study, Verizon, a formation through merger of previously approbate companies that long dominated various regions that included GTE Corp. and the Bell Atlantic Corp. Looking at the market portfolio of the organization as well as the products that the company had already rolled out into the market place, there is astounding evidence that there was heavy reliance on communications. As for the description of the Verizon’s mission and vision, there seems to be a clear sense of expansion and more acquisition of companies that are strategically situated to bolster the company’s revenue. In general, the mission and vision statement of the company reflected fastest available network in US as well as its increasing reliability and wide coverage. The mission of the company is to remain the market giant in provision of communication for business enterprises and individuals through the company’s commitment to ensure customer, employees as well as investor satisfaction. From the Verizon’s investment strategy, there is a clear indication of reliance on top quality services as a stratagem to increase customer base that is augmented by strong progress in customer-service and timely delivery of their promises. Vision television to the company’s communication cell saw a boost of a staggering 85 million subscriber base all at once, a subterfuge that opens up the market upon proper wile. By selling off this portion among other portions of the company’s vast empire, it led to another company emerging that potentially brings in a level of competition to the organization and adversely affects its customer base daily. All in all, it all boils down to tactful choices.
Works Cited
Busch, Terry, Joseph. “Mission, vision, & Values.” What the Best Managers Know and Do: n/a. Apr 23 2011. Web. 26 Mar. 2012.
Sbeit, Raed Omar. "Telecom Mergers - Economical and Technological Effects with Verizon as a Case Study." Southern Methodist University, 2008. United States -- Texas: ABI/INFORM Complete. Web. 26 Mar. 2012.
Varettoni, Bob. “History of Verizon Communication Inc.” Verizon Media Relations, archived Press Releases, 2011. Web. 26 March 2012.
"Viva! Vision Spices Up Verizon Wireless V CAST Service with New Latino Youth Channel; Latino Youths to Tune in to Latest Music, Entertainment, Lifestyle and Comedy with Viva! Vision TV." PR Newswire: n/a. ABI/INFORM Complete. Sep 13 2006. Web. 26 Mar. 2012 .
