Post Merger Integration Challenges In the Mobile Telecommunication Industry: The Case Study of Mannesmann and Vodafone

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ACKNOWLEDGEMENTS

This dissertation is an opportunity for me to extend my regards to my research supervisor, my beloved friends, and my family for their untiring support that they furnished throughout my research. I am grateful to them for their belief in the guidance and me that they provided me without which I would have never been able to work on and complete this research. It also signifies my own views and does not closely relate to the university.

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DECLARATION

I, (), would like to declare that all contents included in this study stand for my individual work without any aid, and this proposal has not been submitted for any examination at academic as well as professional level, previously. It is also represents my very own views and not essentially those that are associated with other university.

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ACKNOWLEDGEMENTSii

DECLARATIONiii

CHAPTER 1: INTRODUCTION1

Background of the Study1

Vodafone's made an Argumentative Takeover Bid for Mannesmann2

Merger Pose New Alternatives in Emerging Markets for Telecommunication Industry3

Merging and European Telecommunication Region4

The Fastest Growing Industry6

Problem Statement of the Research Study8

Purpose of the Research Study10

Significance of the Research Study10

Aims and Objectives of the Study11

Research Questions of the Study11

Definition of Terms11

Telecommunication11

Merger12

Acquisition13

Post-merger Integration Process13

Change Management13

People Management13

Organisational Productivity13

Risk Management14

Outline of the Study15

CHAPTER 2: LITERATURE REVIEW16

Involvement of Management in Mergers16

Merger and Human Resource Management18

Role of Information Technology in Mergers21

Role of Organisational Culture in Mergers27

Integrating Management Accounting Systems in Mergers30

Post-Merger Integration Challenges34

Role of Risk Management in Mergers37

CHAPTER 3: METHODOLOGY40

Research Design40

Data Collection41

Search Strategy41

Inclusion Criteria42

Exclusion Criteria42

Data Analysis43

Reliability and Validity43

Limitations of the Study43

Ethical Considerations44

Findings44

CHAPTER 4: ANALYSIS AND DISCUSSION47

Vodafone AirTouch's Interest in Merger with Mannesmann47

Organisational Culture and Its Importance47

Managing Culture in Mergers50

Managing Employees in Mergers52

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS54

Change Management in Telecommunication Industry54

Negative Effects of Resistance to Change56

Positive Effects of Change Management57

Resolving Organisational Conflicts57

REFERENCES59

APPENDICES65

CHAPTER 1: INTRODUCTION

Background of the Study The example of Vodafone-Mannesmann merger is a typical example of the uptight industrial relationship between the two nations. The German perspectives of industrial relations are based on the core ideology of “Rhenish Capitalism” which was invented by the French economist, Michel Albert. According to this models the social economy of market is defined as the place where social institutions provides basis for the economic developments of markets which can be responsible for providing long terms developments in terms of the stakeholders interests in general which include customers, employees, shareholders, municipality and states and in addition to the social environment. However, during 1990s, the concept of Rhenish Capitalism of German model for economical development had undergone in pressure due to the rapid changes in the global political and economical environment. In November 13, 1999, the Vodafone AirTouch, which is a United Kingdom based world's largest cellular phone company, announced a takeover bid for Mannesmann, which was German, based telecommunications and engineering group. This overtaken bid was established based on exchanging of shares between the two companies. However, the management of Mannesmann initially rejected the offer of acquisition due to the major differences in ...