Mktg577 - Week 6 Case Study Essay

2205 Words Apr 9th, 2013 9 Pages
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
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Armstrong (2009) indicated that change is the only thing which is constant in any organization. The work of Kotter (1990) however noted that organizations are in a state of constant flux. The fact that organizational change is inevitable is a constant element of all organizations that seek to adapt to new challenges as well as approaches (Mullins,2010).

The significance of organizational change is captured by Sloan (1967) when he indicated that market situations like the dynamic nature of the product and services coupled with the dynamic nature of the market itself can bring down a given business entity if the given entity is not ready for the culture change.

The work of Kanter (1992) defined organizational change as the behavior of the organization to a certain degree or another. Organizational change has strategic and structural consequences within a given organization. This is because it involves the process of dismantling as well a restructuring of the various structures within a given organization. Several problems can arise due to organizational change (Czerniawska,2005).

Organizational change is a very critical and yet very inevitable process ofan organization’s structure. It can create a lot of pressure from the workers as well as management as a result of fear of the unknown.

Senior and Fleming (2006 ) noted that organizational change may affect the general operations of the company as well as business functions.

The forces that result in

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