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INTRODUCTION
This case weaves leadership and organizational culture principles into the strategic fabric of a modern firm competing in a global, competitive, high tech industry. The achievements of Atul Jain, founder, CEO, and Chairman of TEOCO, are extraordinary given his limited business expertise, compliant personality, and unconventional belief system – all which he has parlayed into a competitive advantage for the his mid-sized telecommunications software company.
The introduction of the case places TEOCO at a major juncture, having recently completed an acquisition which doubles the size of the company and committed to a new ownership structure with a venture capital
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* Discuss TEOCO’s strategy. What challenges does the TTI acquisition pose for the company? * What suggestions do you make for Atul as he adjusts to anticipated organizational changes and executes revisions to his strategy? What steps can or should be made in light of the company’s new circumstances?
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ANALYSIS
* Describe environmental conditions that influenced Atul’s decision to entertain TA Associates’ unsolicited investment proposal. How will the partnership change TEOCO’s business?
Leadership guides the strategic management process in organizations. For years, strategic decisions at TEOCO were based on Atul Jain’s long-held business beliefs that external financiers could not represent the firms’ best interests, could only negatively impact the culture and values he espouses, threaten the competitive edge of entrepreneurial spirit, and induce high-risk behavior in pursuit of large gains. Despite this leader’s aversion to debt, venture capital, and external influences that could dilute the firm’s culture, the company has entered a partnership transaction with TA Associates which infuses $60 million of capital into the firm and allots a minority equity interest to the private equity firm. A conflux of external and internal conditions precipitated this unlikely alliance.
External Conditions
TEOCO operates in a fragmented and highly
Organizational culture could almost be considered the roots of a company. The way a company’s employees think, the way the customers feel, and the company’s decisions are made are all based around the culture that the company has laid for itself. An employee’s values, thoughts, and actions should reflect those stated in the company’s mission. Southwest Airlines and American Airlines, while both attempting to create a culture that is comfortable and pleasing to their
Organizational leadership and culture has been a major issue in today’s highly structured organizations. This has necessitated that organizations understand in depth the inter-relation between culture and organization on strategic leadership. Is it that the leadership determines culture or the culture determines leadership behaviors? While many argue that the leaders have absolute control and influence the direction of organizational culture, research actually shows that leaders themselves are greatly influenced by variables and situational setting in any organization, implying that it is valid to say that leadership itself receives significant influence from organizational culture (Waldner & Weeks, 2006).
McCoy’s Building Supply Centers and Chick-fil-A are two 70 years old, successful companies withstanding the test of time. They continue to sustain growth and longevity through economic turbulence, and remain competitive with new and upcoming companies. What is the secret to their success one might wonder? As we examine each company, we begin to recognize the existence of a strong organizational culture. The organizational culture of a company is the anchoring core values, which permeates throughout the company and its employees (Schermerhorn, Osborn & Uhl-Bien, 2012, pp. 9).
The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,
Chief of Police Antonio Oanis and Corporal General Alberto Galanta were instructed to arrest a notorious criminal and an escaped convict Anselmo Balagtas. If suppressed , to get him dead or alive. Proceeding to the suspected house , they went to a room where a man is sleeping , concurrently shot and fired at the man. The victim turned out to be innocent , Serapio Tecson. The defendants alleged and plead that due to official duties , they acted in innocent mistake.
The owner of Hansson Private Label (HPL) must determine whether or not to accept an aggressive expansion project that would preclude the company from pursuing any alternative investment opportunities for several years. The investment, if successful, would offer numerous benefits to the company, capturing greater market share, strengthening relationships with major customers, crowding out competition and increasing firm value. Nonetheless, the decision carries significant risks and could lead to a substantial decline in firm value, if not bankruptcy, should any number of variables prove unfavorable to HPL. Moreover, the project relies heavily on a contract with a single large
Additionally, as expressed by Rebecca Ratner, Hsieh’s commitment to merging the workplace with social lives could present risk to the company in the form of unprofessional or inappropriate conduct that is not addressed properly.
More sound research in to partners during ongoing partner crises, and also with competitors, obviously with ex TTSL employees establishing TCC, there could have been a relationship developed so that it didn’t come to years of waiting etc
This case gives comprehensive coverage of a firm’s decision to start an initial public offering but also to go through the process of going public. TRX is a company managing travel-and-data processing activities for its clients. Its target market has significant transaction volume in travel agencies, travel suppliers, large corporation and credit-card issuer. Regarding its service offerings, it focuses on transaction processing, data integration and customer care. Its fortune tied to the overall health of travel industry. TRX generates a lot of revenue but less profit. Trip Davis, Chief Executive Officer of TRX, Inc. decided it was time to raise capital in order to fund the growth of the company. His main focus was to accomplish a strategic recapitalization of TRX. This case gives a brief history about several events from the company’s incorporation in 1999 through the completion of an IPO in September 2005. The main goal is to raise capital but there is also a consideration of another reason for going public. In November 1999, they tried to go public but the IPO was never finalized. After the failed IPO, Trip Davis and TRX president decided to focus on strategic investors in order to raise $20 million convertible into equity at $11 per share. In 2004, he believed that Sabre, Inc. one of the largest strategic investors was not working for the best interest of the company. He took into consideration three possible capital raising options: IPO, private placement of equity, or
1. Analyze the changes that Al Dunlap had initiated at Sunbeam after being hired from a strategic perspective. Did the changes started by Dunlap allow him opportunities to manage earnings?
The company transformation from private equity ownership with an immediate shift of CEO marked new challenges for the company. The company has been going through rigorous changes to keep up with the strong
Organizational leadership and culture has been a major issue in today’s highly structured organizations. This has necessitated that organizations understand in depth the inter-relation between culture and organization on strategic leadership. Is it that the leadership determines culture or the culture determines leadership behaviors? While many argue that the leaders have absolute control and influence the direction of organizational culture, research actually shows that leaders themselves are greatly influenced by variables and situational setting in any organization, implying that it is valid to say that leadership itself receives significant influence from organizational culture (Waldner & Weeks, 2006).
As Tektronix decided to implement the new Oracle ERP system, the company chose to introduce it in phases, based around the specific functionality or a particular geographic region. Implementing in phases, or in waves as Tektronix called it, allowed the company to experience regular feedback on specific areas of implementation, allowing time to adjust processes and scheduling as needed. The phased approach enabled the company to achieve frequent victories, which kept team and employee morale high throughout the process and provided encouragement to the Board despite the high cost and long timeline of the overall implementation.
Chapter 7: Merger and Acquisition Strategy ---- House of Tata: Acquiring a Global Footprint (written by Tarun Khanna, Krishna G. Palepu, and Richard J. Bullock)
The competing values framework represents a theory, based on the crucial indicators of an effective organization. It revolves around four major components of organizational culture, which measure the organization's leadership style, institutional bonding, strategic emphases and general cultural characteristics. Leaders and managers benefit from this conceptual framework as it offers teaching tools and helps interpret various organizational functions and processes. In order the examine the organizational culture more in depth, this framework has been extended (Quinn and Kimberly, 1984, p 298). They identified the two main dimensions upon which the competing values framework of cultured is based : the competing demand of change and stability, and the conflicting demands created by the internal organization and the external environment. These dimensions were reflected by other scholars as Thomson