What issues do you expect to arise given TA’s recent investment in TEOCO? What r

Question

What issues do you expect to arise given TA’s recent investment in TEOCO? What recommendations do you have to assist with these issues?What issues do you expect to occur while incorporating TTI into the TEOCO culture? What recommendations do you have to assist with these issues?What challenges to you foresee in maintaining TEOCO’s strong corporate culture given the need for continued organizational change?In your report, you should be able to demonstrate an insightful look at TEOCO’s situation, make recommendations for incorporating TA’s requirements into TEOCO’s unique management style, and recommendations for incorporating the employee’s of TTI into TEOCO’s organizational culture.

Explanation / Answer

What issues do you expect to arise given TA’s recent investment in TEOCO?

Till now, TEOCO focused only on the North America telecom carriers, but with TA’s investment in TEOCO, TEOCO now needs to expand its operations globally, where the competition that TEOCO has to face will be much tougher than faced by TEOCO till date like Razorsight, Connectiv and Subex, in the cost management segment, with same companies in revenue assurance, and competed with companies like Pulse Network, Global Convergence Solutions, and Telarix in the least cost routing segment. Except Subex, none of TEOCO’s current competitors operated in all the 3 business segments of cost management, revenue assurance and the least cost routing segment. Subex on the other hand did not provide its least cost routing services in North America, hence this made TEOCO’s competition much easier to handle than what lies ahead in the global market.

Also, with the investment from TA, 2 directors have been added on board of TEOCO, which might affect the shared leadership model TEOCO follows. The investment will also affect the culture and working environment of TEOCO, as the management will be affected by the changes that TA brings on the table.

Lastly, Atul Jain as the CEO has been performing the role of chief HR officer, taking keen interest in the HR practices of TEOCO, but with TA’s investment, growth in the company’s operations the complexity in the functions and their domain will increase many folds, making it tough for CEO’s personal involvement in all the HR related issues.

What recommendations do you have to assist with these issues?

To overcome these issues Atul Jain as the TEOCO’s CEO, will have to ensure he can sustain TEOCO’s core competency, its client centric approach and its empowering work culture, even with TA’s directors on board. Also, Atul Jain will have to let go his involvement in all the HR functions personally, but to do so, TEOCO should hire a capable HR head, who holds the same working style and philosophy as TEOCO currently practices. To counter the global business pressures TEOCO needs to expand its team, making sure the values and principles that TEOCO has followed till now are in sync with the people TEOCO is hiring for expansion.

What issues do you expect to occur while incorporating TTI into the TEOCO culture?

Post acquisition of TTI, the 3 major characteristics of TEOCO’s strategy, (i.e. shared leadership model, employee ownership organization culture and TEOCO’s CEO himself performing as chief HR officer) will be challenged due to the differences in the location and work environments of TEOCO and TTI. TTI brings its leaders on board along with the TEOCO’s team, and both the companies being of comparable sizes, leadership conflicts can arise in the management style. Also, TEOCO’s CEO’s personal involvement in HR practices like hiring and motivation of employees cannot be extended to both the locations and the size of the organization after acquisition. The employee ownership of the company was halved after the TA’s investment to make sure that Atul Jain still holds the controlling ownership percentage. With acquisition of TTI the employees of TTI will also share the ownership if the culture of TEOCO has to be continued further diminishing the ownership opportunity for the actual TEOCO’s employee base.

What recommendations do you have to assist with these issues?

TEOCO to overcome these issues needs to ensure that the leadership of both the firms work in harmony with unified goals and objectives and not as separate entities conflicting with the other. Hence, to ensure the leadership still provides strategic advantage to TEOCO, Atul Jain has to ensure the leaders coming onboard from TTI understand and celebrate TEOCO’s ideology regarding the environment culture that TEOCO cherishes. Also, the work environment of TEOCO has to be communicated to TTI, and efforts need to be made to implement and motivate the same at the TTI’s location to ensure both the organization work as one entity in the global market.

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