StreamLine - The ABC of a Merger (A): Story of the Merger

Published 30 Sep 2002
Reference 5050
Topic Strategy
Region Europe
Length 14 page(s)
Summary

In January 2000, two Bristish middle-tier high technology companies, Stream and Line, announce their merger agreement. On 6 May 2000, in a record period of four months one of the biggest high technology companies with a capitalized market value of more than US$84 billion is formally launched on the world stock markets. On August 1st, the company celebrates its launch with world-wide satellite links in the presence of the newly designated CEO, Roger Farrell. This series of three sequential cases recounts the story of the merger from the perspective of one of the business unit, the Sales Organization, in the UK. The first case, “The Story of a Merger” covers the period between January 2000 and August 2000. It introduces the key character of the three cases, Anne Wright, the newly appointed Sales Organization President. After describing the business and cultures of the two merging companies, it proceeds by giving an account of the two most emotionally engaging events faced by the protagonist early in her position: her introduction to the acquired company, Stream, and the process of site selection and announcement.

Teaching objectives

“The StreamLine: The ABC of a Merger” is a comprehensive case series that can be used to discuss the relationship between strategy implementation, human capital, and emotions management in a period of radical traumatic change (mergers, downsizing, re-engineering, relocations, etc.). The cases illustrate the importance of careful planning and implementation with due attention to people and emotions management.

Keywords
  • Emotions management
  • Change management
  • Merger and acquisition
  • Middle management. RD0902
  • AR2002
  • AR0203