TITLE

An Assessment of Cap Gemini's Cross-Border Merger With Ernst & Young Consulting

AUTHOR(S)
Maihotra, Ayesha; Pierroutsakos, Alex
PUB. DATE
June 2005
SOURCE
Multinational Business Review (St. Louis University);Summer2005, Vol. 13 Issue 2, p107
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Cross-border mergers are rising in number and scope even though, on average, firms do not profit from them. In this article, we use interviews and secondary data to assess a historic merger between two global consulting giants - Cap Gemini and Ernst & Young Consulting. The two firms had well-articulated strategic reasons for merging. Nevertheless, their integration strategy failed to address key differences in business models, core competencies, and organizational practices. As a result, the combined firm suffered five years of diminished financial and competitive performance. Our study highlights the organizational complexities affecting mergers between human capital-intensive firms.
ACCESSION #
25695198

 

Related Articles

  • HUMAN RESOURCE SYSTEMS AND SUSTAINED COMPETITIVE ADVANTAGE: A COMPETENCY-BASED PERSPECTIVE. Lado, Augustine A.; Wilson, Mary C. // Academy of Management Review;Oct94, Vol. 19 Issue 4, p699 

    Manufacturing flexibility is critical for survival in industries characterized by rapid change and diverse product markets. Although new manufacturing technologies make it possible to accomplish flexibility, their potential remains unrealized by firms whose organizational elements do not possess...

  • When Leaders Really Walk the Talk: Making Strategy Work Through People. Galpin, Timothy J. // Human Resource Planning;1998, Vol. 21 Issue 3, p38 

    Growth has returned to the forefront of competitive thought for shaping commerce into the next millennium. Yet, many business leaders would argue that growth never left the collective corporate consciousness. They contend that the downsizing and cost cutting of the early 1990s were done to...

  • OUR HR COLUMNIST. Green, Kevin // People Management;8/11/2005, Vol. 11 Issue 16, p46 

    The article presents the author's view on the impact of organisational design on work performance. According to the author, it is now recognised that the performance of any company is determined by the interaction of its strategy, the way it is organised and its environment. Smaller, more...

  • Foundations for enterprise. Connelly, Patrick O. // Credit Management;Sep2012, p34 

    In this article the author discusses how to create an enterprise support platform that needs core competencies and ability. It states the levels needed to establish a fundamental competency including enterprise associates, department, and operating unit. It further presents a diagram of human...

  • Help your people to think and act strategically. Aquila, August // Accounting Today;2/11/2008, Vol. 22 Issue 3, p22 

    This article describes several activities that may help firms and employees to think and act more strategically. These include priority setting, having focus, measurement and reporting, organizational structure, communication, commitment, and compensation and rewards. Before the implementation...

  • Three step HR strategy. Atkins, Angela // Human Resources Magazine;Apr/May2013, Vol. 18 Issue 1, p8 

    The article offers tips for human resource (HR) strategic planning in organisations. Organisations are suggested to have properly run and effective operational HR functions so as not to undermine their credibility. They are advised to conduct a strategic needs analysis (SNA) once the HR...

  • Difficulties in Making OD a Part of Organizational Strategy. Mendelow, Aubrey L.; Liebowitz, S. Jay // Human Resource Planning;1989, Vol. 12 Issue 4, p317 

    The nominal group technique was applied to three groups of Human Resource professionals--managers, directors and vice presidents--to identify the difficulties they face in making organization development (OD) a vital part of their organizations' strategies. Six general management issues and four...

  • Structural impacts on the occurrence and effectiveness of transformational leadership: An empirical study at the organizational level of analysis Walter, Frank; Bruch, Heike // Leadership Quarterly;Oct2010, Vol. 21 Issue 5, p765 

    Abstract: This article empirically investigates the role of organizational structure in the transformational leadership (TFL) process. We examine organizational centralization, formalization, and size as antecedents of an organization''s TFL climate, and as moderators of the relationship between...

  • Routines in Emerging Organizational Structures. Madapusi, Arun // Proceedings for the Northeast Region Decision Sciences Institute;2008, p504 

    In terms of organizational structure it can be argued that practice is running ahead of theory. In trying to find ways to increase flexibility and adaptiveness and compete in a global environment, firms are restricting themselves to their core competencies and finding a variety of ways to...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics