MCI takeover Essay

On April 19, 1997, the company was offered for sale to Mr. Warren G. Hamer. Provided with the exhibits that contain the summary of Terms and Conditions of Sale, audited Income Statements and Balance Sheets, and Company History, Mr. Hamer needs to decide whether or not to place a bid, which is due on April 24. However, Mr. Hamer was

In order to identify Verizon's core competencies, a SWOT and Five Forces analysis was performed. The SWOT analysis showed internal strengths in technology diversification, a large and talented employee resource pool, and an expansive network footprint. Internal weaknesses were revealed that centered on post merger issues such as corporate culture issues, impending workforce retirements, and a lack of systems or process consolidation. External opportunities include the potential to further capitalize on incumbent status, diverse markets, long distance, and brand identity. Finally, external threats include government regulation, substitution, and a weak economy.

Question 5: Evaluate the Put-Warrant/Convertible Bond proposal. Does it solve Intel’s capital structure dilemma? What arguments might be made in favor of it?

1. Assess Interco’s financial performance. Why is the company a target of a hostile takeover attempt?

If they are able to maintain the loyalty of most of their current customers, the companies will then have a shared amount of about 100 million customers. This potential customer volume for the merging companies would greatly outnumber the customer volume of the industry leaders, AT&T and Verizon. This kind of turnout would create greater competition between the two merging companies and the two leading companies (Sprint Wireless News, 2014). Although the outcomes seem promising for Sprint and T-Mobile, there are also potential negative effects of a merger that the companies should take into consideration. Current Sprint and T-Mobile customers have expressed their fear of the possible merger for multiple reasons. The two biggest worries for telecommunication services consumers is the potential for rising costs and a reduction in provider options (John, 2016). In making a final decision, the companies, as well as the Federal Communications Commission, should weigh the advantages and disadvantages of a

What do you think of the change each company has made to date – the objectives, the competencies, and incompetencies? What strategic impediments and disabilities did each bring to the organizational dynamics? What recommendations would you make to each organizational leader?

From the business press, identify a company making a global SC network design decision. What are the primary issues the company is evaluating? How do they compare to the issues discussed in the chapter?

Comcast and Time Warner Cable operate on a continuous scale of production. This means the production line runs 24 hours and 365 days a year, high level of machinery is required, every stage is at quality control, etc. Comcast and Time Warner Cable’s source of raw material is Spectrum Co. The technology they use world class technology

Verizon Communications Inc. is a public sector company operating in the telecommunications industry, providing broadband and other wireless and wireline communications services to consumer, business, and government and wholesale customers. It also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers integrated business solutions to customers . Verizon holds the position of the largest U.S. wireless communications service provider as of September 2014 , the carrier outstrips its three main competitors which are AT&T Sprint and T-Mobile across a variety of coverage categories including network speed, network reliability, data and calling. The only category in which Verizon was runner up was in texting to AT&T . Verizon holds position #22 with a $202.5 B market value in Forbes Magazine’s 2015 Ranking list of The World’s Biggest Public Companies, that’s five places before AT&T with a $172 B market value . However many people still choose other providers over Verizon, with that in mind my commentary will focus on analyzing the weaknesses and threats of Verizon that may cause people to choose other providers over it. In a

4. Using Exhibit 4B evaluate the proposed acquisitions. Would you recommend purchasing all of the licenses? Why or why not? Explain Briefly

Verizon provides broadband and telecommunications services as well as wireless technology to millions of customers around the world. There are many different competitive strategies that the company can implement to further expand its market share within the industry. There are a few key factors that make up the market structure; barriers to entry, competing firms, and the degree of differentiation of products/ services. Verizon offers services that are needed in most households. Verizon operates as an oligopoly, where it only has a few major competitors and the number of customers is tremendously high (Octotutor, 2014). The barriers to entry are also very high because, to offer a reliable telecommunications services

Based on Table 2 summary, Verizon definitely has a better financial and economic outlook with positive earnings and A+ debt rating. They can further sweeten the deal by taking away the discount (1.1%) from the current bid even though the current offer should be good enough for the nervous MCI shareholders

After reviewing all financial reports and reading about Verizon strategy, the recommendation would to take advantage of cost advantage as well as competitive advantage by focusing on its strength as the leader of wireless service. It is evident that Verizon fits well in this industry and it should seek to compete more heavily with AT&T in the digital TV department.

Although this seems standard, granting increased access to customers would severely impact competition within the market. Yet, as AT&T’s CEO argues, "This is not the T-Mobile deal; there is no competitor being removed from the marketplace…Time Warner is a supplier to AT&T. It's a classic vertical merger.” Thus, the telecommunications giant is attempting to make the argument that the deal would be friendly for consumers. However, promising to differentiate acquired services is a slippery slope that could inevitably lead to higher prices for

A decade ago, America has witnessed its biggest merger of their history when AOL and Time Warner merged for an all stock deal with a combine value of $ 350 billion which also created the world’s largest media and Communication Company, but today I want to re-examine this ill-fated deal and try to explore what went wrong. In an initial statement about this merger and probabilities of new company it was stated that this merger will lead to a speedy development and growth for all its businesses. It will not only provide AOL a new broadband interactive platform, but the companies can also grow their revenue through cross marketing from movies, music, and internet to telephone.