Hutchinson Merger Case Study

Abstract

This paper is about the restructuring involved in companies that takes place after a merger or an acquisition. We have taken up four companies for our study – merger of Hutchinson Australia and Vodafone, acquisition of Hutchinson by Tech Mahindra, acquisition of Kia Motors by Hyundai Motors and ---------------------, the details of which will be mentioned later. This paper lays emphasis on the meaning of organisational structure, reasons involved resulting in a merger or acquisition, the details of the industry and organisational structure before and after the merger or acquisition involved, as the case may be. The impact on the business after the merger /acquisition is also laid forth. Our main sources of information include public

As there may an increase in the differentiation, the hierarchical level in the company increases. Thus there is a long line of communication between the top management and the junior level employees. It also makes it difficult for the top level managers to oversee the action of the operations. Vertical and horizontal differentiation cannot be seen independent of each other. As there is an increase in horizontal differentiation the vertical differentiation also increases. As horizontal differentiation means diverse employees with diverse training it will be a challenge for these individuals to actually see their contribution to the organization as a whole. It is not necessary for organizations to have the same degree of vertical differentiation depending upon the size of the organization. Organizations can be flat or tall having a lot of layers of hierarchy. It is the span of control that determines the eventual structure. The number of subordinates that a manager can manage with good effect is called as span of control. Organisations such as the Indian software giants like TCS, Wipro, and Infosys etc have a tall structure where employees work under the close supervision of their boss. In case of a flat structure as is usually followed in advertising agencies, there is a simpler chain of communication between the top management and junior level employees and less supervision by the

If we consider examples of McDonalds or KFC, they have their stores all around the world. Yet, the quality of their food, packaging of food, customer service, and outlay of their stores and uniform of the staff is maintained the same throughout. While considering the burger, there is a certain percentage of sugar in each item, breadth of the patty length of the bread and fat percentage which is standardized at all locations. Even the fries are kept in the warming light for no more than seven minutes. Thus there will be no doubt in the mind of the customer, wherever he/she may be in the world having the McDonalds burger, they will cherish the same