Financial Times: A HHL Case Study Examines Why Company Mergers May Fail
The Financial Times publishes case studies from the Management programs of renowned business schools on a regular basis. Entitled "Promising mergers that fall apart.
A decade of AT Kearney ups and downs", the study by Jun.-Prof. Dr. Vivek K. Velamuri is featured in today's issue (July 2, 2013) of the international business journal. The holder of the Schumpeter Junior Professorship for Entrepreneurship and Technology Transfer at HHL Leipzig Graduate School of Management says: "The case study is based on real-life conditions and analyzes the 1995 acquisition of AT Kearney, a successful management consulting firm, by the global IT company Electronic Data Systems (EDS). The manner in which EDS executed the merger and the purchase price, USD 595,000,000, were unrivaled at the time and caused quite a stir back then."
Jun.-Prof. Dr. Vivek K. Velamuri, who originally co-authored the study with Gebhard Ottacher and Prof. Dr. Kathrin M. Möslein entitled "Love Gone Awry: AT Kearney & EDS (A) + (B)" for the European Case Clearing House (ecch), comments on the possible learning aspects: "The case of EDS and AT Kearney represents an example of why company mergers can fail. Specifically, 'tunnel vision' regarding positive expectations for the future may lead to deficient execution. Apart from complex business decisions, it is the company culture as well as the executives' personalities which are crucial for the success of a merger. This study clearly shows that the 'hard' factors such as compensation and fringe benefits are just as pivotal as the 'soft' ones. They are considered guarantors of motivation and an increase in performance among employees in companies from the service sector."
About the Schumpeter Junior Professorship for Entrepreneurship and Technology Transfer at HHL Leipzig Graduate School of Management
In March 2012, Jun.-Prof. Dr. Vivek K. Velamuri became the new Schumpeter Junior Professor for Entrepreneurship and Technology Transfer at HHL. This Junior Professorship is kindly being sponsored by the Leipziger Stiftung für Innovation und Technologietransfer. Jun.-Prof. Dr. Velamuri’s research focus is on hybrid value creation, i.e. the process of generating value added by combining products and services to well-adjusted offers. This is the topic on which he completed his doctoral dissertation at the University of Erlangen-Nuremberg (Chair of Professor Kathrin M. Möslein) with summa cum laude in May 2011. Working on research projects, which focus on innovation and value creation, at Professor Möslein’s Chair with partners from the industry brought Jun.-Prof. Dr. Verlamuri significant experience in research carried out in cooperation with industry. Additionally, the Junior Professor, who also holds an MBA from HHL, has a solid background in teaching. His constant interaction with entrepreneurs motivated Jun.-Prof. Dr. Velamuri to design a course for students to write case studies on entrepreneurial firms. http://www.hhl.de/entrepreneurship
About HHL Leipzig Graduate School of Management
HHL is a university-level institution and ranks amongst the leading international business schools. The goal of the oldest business school in German-speaking Europe is to educate effective, responsible and entrepreneurially-minded leaders. HHL stands out for its excellent teaching, its clear research focus, its effective knowledge transfer into practice as well as its outstanding student services.
Volker Stößel | idw
The most recent press releases about innovation >>>
Die letzten 5 Focus-News des innovations-reports im Überblick:
A new manufacturing technique uses a process similar to newspaper printing to form smoother and more flexible metals for making ultrafast electronic devices.
The low-cost process, developed by Purdue University researchers, combines tools already used in industry for manufacturing metals on a large scale, but uses...
For the first time ever, scientists have determined the cosmic origin of highest-energy neutrinos. A research group led by IceCube scientist Elisa Resconi, spokesperson of the Collaborative Research Center SFB1258 at the Technical University of Munich (TUM), provides an important piece of evidence that the particles detected by the IceCube neutrino telescope at the South Pole originate from a galaxy four billion light-years away from Earth.
To rule out other origins with certainty, the team led by neutrino physicist Elisa Resconi from the Technical University of Munich and multi-wavelength...
For the first time a team of researchers have discovered two different phases of magnetic skyrmions in a single material. Physicists of the Technical Universities of Munich and Dresden and the University of Cologne can now better study and understand the properties of these magnetic structures, which are important for both basic research and applications.
Whirlpools are an everyday experience in a bath tub: When the water is drained a circular vortex is formed. Typically, such whirls are rather stable. Similar...
Physicists working with Roland Wester at the University of Innsbruck have investigated if and how chemical reactions can be influenced by targeted vibrational excitation of the reactants. They were able to demonstrate that excitation with a laser beam does not affect the efficiency of a chemical exchange reaction and that the excited molecular group acts only as a spectator in the reaction.
A frequently used reaction in organic chemistry is nucleophilic substitution. It plays, for example, an important role in in the synthesis of new chemical...
Optical spectroscopy allows investigating the energy structure and dynamic properties of complex quantum systems. Researchers from the University of Würzburg present two new approaches of coherent two-dimensional spectroscopy.
"Put an excitation into the system and observe how it evolves." According to physicist Professor Tobias Brixner, this is the credo of optical spectroscopy....