Time Warner And Aol Merger / Culture Clash, Human Resource, Mergers Bricks And Clicks

1455 words - 6 pages

Q B1.1: Are major problems likely when combining different cultures in this combination of "bricks and clicks"?The merger of American Online (AOL) and Time Warner has launched a new trend of emerging organizations: the combining of traditional, established companies with Internet powerhouses.There are several different thoughts regarding this issue in merging companies with different cultures. Some specialists in the industry argue that most of the deals don't really fall apart on a culture issue. As an example, Dennis Kozlowski mentioned that most collapses on price are not due to cultural differences between the companies. He also considered the employees and managers of a company as flexible persons who can easily adjust to different cultures in the case of a merger or an acquisition. On the other hand, other specialists such as Jan Leschly stipulate that most of the benefits of mergers are diluted due to management differences and "culture clashes".I will use the framework from Howson Peter to consider the particular cultural topics to watch in the case of a merger:Attitude to risk and uncertaintyAttitudes to rules and regulationsSpeed of changeSpeed of decision makingFocus on the big picture rather than detail, or the other way aroundTime horizonsThe importance of hierarchy, status and the maintenance of powerFormal versus informal systemsThe degree of openness: how much information is shared?Individual versus collective responsibilityI assume, for my example, that a large "brick" company that is operating in a "mature" market acquires a smaller but high-growth "click" company. A high-growth e-business may have a culture based on:A confident attitude to risk and uncertainty. Employees that have known only success in a high-growth industry may be less risk-averse and different from people that are operating in a status quo industry ,High speed of change and high speed of decision making. Because the industry is growing fast, the technology is evolving constantly and the competition is arising to grab market shares, a "high speed of change" and "high speed of decision making" culture may exist in a "click" company. The opposite may characterize a blue chip company.Short time horizons. I assume that the investment time-horizon for "clicks" companies are shorter than for "bricks" companies due to the fast changing technology.A flat hierarchy and informal systems. In smaller companies, there are often less hierarchical layers and more informal systems in comparison to a large company.High degree of openness. More and more young companies apply some corporate policies to enhance the degree of openness (e.g., open-door policy, management by walking around, employee empowerment). I think this is also due to the higher level of education of the employees working for those high-tech companies. On the other hand, I would expect that the management of an industrial manufacturing company shares less information about the strategy (either corporate or...

Find Another Essay On Time Warner and AOL merger / culture clash, Human resource, mergers bricks and clicks

AOL Time Warner On Essay

1562 words - 6 pages AOL Time Warner OnJanuary 10, 2000, one of the largest, most powerful mergers was announced to the world. Media giant Time Warner will join forces with the Internet superstar,America on Line. The $183 billion dollar deal is the biggest in history. In the recent past, there has been a wave of merger-mania, both in the United States and in Europe. The merger of the Millennium is between America on Line and TimeWarner. The AOL Time Warner deal

Aol, Time Warner Case Study

713 words - 3 pages Warner (AOL TW). This merger was valued at $156Billion and was one of the largest ever.This merger took over a year to close. They had to deal with a range of difficult antitrust issues. Then AOL's shares dropped from $68 to $47 this was due to the economy. (Yang 2000 pg 36-38)The best strength they had was, when they merged together they created a business that was into a vast majority of small business. Time Warner was a vertical company that

Nursing and The Organizational Culture of Human Resource Management

1483 words - 6 pages Organizational culture can play a very important role in any corporation’s success. As we learn more about how to make a company more successful through effective management of Human Resource, we are learning of the value of people, as a whole, and how they contribute to the success or failure of an organization. That’s even more so true with in healthcare organizations. Nurses play a pivotal role in the health care profession and make up the

Internet Business: bricks-to-clicks and clicks-only

631 words - 3 pages For each of the business models, identify 2 businesses*, one that is a "bricks-to-clicks" and one that is a "clicks-only" or "pureplay". Comment briefly on any differences you observe in their approaches to doing business on the Internet. Business model is the way of doing business by which a company can sustain itself. The two business models that I chose were Advertising and Brokerage models. In the advertising model the business that I

An empirical study of human resource management strategies and practices in Australian just-in-time environments

7366 words - 29 pages changes and their attendant difficulties. It is therefore surprising (although not entirely unexpected given their more obvious and visible nature) that much of the research carried out prior to 1990 concentrated on the manufacturing techniques employed in a just-in-time environment, rather than the more subtle people and quality related aspects. Golhar and Stamm (1991) found that of 180 articles reviewed only 12 related to human resource

Human resource management-overtime or part time

520 words - 2 pages Peak part-time workers were used to cover high in demand during the working days and weekend in a range of economic sectors. This is the common ways to achieve the peak demands.In order to satisfy the customers' demands, it seems have to increase the staff. The part time employment is the economic ways of reducing the labour cost. Those part time workers who covered the peaks in demand and are trained to cover a range of functions including

Culture Clash: Advantages and Disadvantages

667 words - 3 pages equality in a community and peacefully get along and even agree to disagree enlightens the belief that contrasting cultures don’t have to clash but can coexist. Opposing consequences can occur and culture diversity can be an unfavorable rocky road, usually from language barriers and social nonacceptance of people from a different culture. While language barriers are easier to amend, social acceptance takes time or no time at all if barriers are

Mergers and Joint mergers

941 words - 4 pages alliances as well as a joint venture and how it differs from the mergers. Each business arrangement is used to attempt an improvement for the company, the important thing to remember is which will be most beneficial and why.A horizontal merger occurs when two competing companies in the same market joins together to become one firm or one identity. The two companies could have an influence on the competitive market if the companies have a large

America Online , AOL. Worth your time and money

609 words - 2 pages You have probably heard of the Internet, but you weren't really sure if it was for you. You thought about it, but after all it costs so much and things like pornography and improper language are used everywhere, right? Wrong! Perhaps, I can convince you that America Online will be worth your time and money.One of the main reasons that people don't go online is that they think that it costs too much. America Online or AOL doesn't really cost all

Human Resource Roles and Responsibilities

923 words - 4 pages often referred to as HRIS (human resource information systems) that are used in an effort to maximize productivity throughout an organization in areas related to Workforce Planning (Staffing and Training), Compensation, Benefits, Safety, Work-Life, Performance and Position Management, etc. Typically, HRIS technology replaces the core HR activities of 1) payroll, 2) time and labor management, 3) benefit administration and 4) HR management by

Human Resource Responsibilities and Roles

1348 words - 5 pages . They are forcing human resources to be a resource. Now, the human resource professional truly have no choice because they either become engineers and developers predicting and responding to these attitude changes, or they will eventually disappear from the retail picture.The future human resources management will shift most the routing time-consuming bureaucracy tasks to technology and will concentrate on personnel retention and development. Human

Similar Essays

Time Warner And Aol Merger Essay

1518 words - 6 pages Time Warner and AOL Merger Time Warner Corporation has numerous subsidiaries which are moving media materials across media boundaries. They are doing this in numerous ways, based on synergies and joint ventures. For example some of these include gaining more access to cable lines by a joint venture with US West, and merging with AOL. They are also using a tactic called co-development as properties are knitted together by sister

Aol/Time Warner Merger Essay

646 words - 3 pages In an era of big mergers and large corporate conglomerations, the Time-Warner/AOL merger came as no big surprise. However, it did manage to become a center of controversy as eyebrows were raised among competitors and the FCC, who thought that combining the nations largest internet providers and one of the nations largest cable networks, may violate antitrust laws. What made this issue unique, was the effect of globalized antitrust regulation

Aol Time Warner And Harley Davidson

881 words - 4 pages AOL Time Warner: Deal of the Century Turns into Disaster of a Lifetime (Bovée/ThillMescon, 2007)AOL acquired larger Time Warner in 2001, in a merger valued at over $180 billion (USD) and tagged the “deal of the century”. The merger was the first between a traditional media giant and a new media-internet giant and had a significant impact on a variety of different industries including e-commerce, magazine publishing, music and

Aol Time Warner Essay

1592 words - 6 pages AOL Time Warner On January 10, 2000, one of the largest, most powerful mergers was announced to the world. Media giant Time Warner will join forces with the Internet superstar, America on Line. The $183 billion dollar deal is the biggest in history. In the recent past, there has been a wave of merger-mania, both in the United States and in Europe. The merger of the Millennium is between America on Line and Time Warner. The AOL Time