CASE ANALYSIS OF THE MERGER OF T-MOBILE AND SPRINT CASE ANALYSIS OF THE MERGER OF T-MOBILE AND SPRINT LeTrehl C. Howard DeVry University BUSN412: Business Policy Professor; Paula Herring 1 CASE ANALYSIS OF THE MERGER OF T-MOBILE AND SPRINT 2 Abstract The concepts I would like to apply from week 2 readings would be, Value Chain Analysis and Human Capital Retention. Value Chain Analysis according to the coursebook on page 72 defines Value Chain as a strategic analysis of an organization that uses value-creating activities that form or follow in sequential logical order. It is a sequence of business activities by which, from the perspective of the end-user or employee, value is added to (or costs incurred by) the products or services produced by an entity. This concept and approach mentioned, is useful for understanding the actual building blocks of having a Competitive Advantage. The value is the actual amount that buyers are willing to pay for what the firm provides them and measured by total revenue, the price a firm command, and the quantity or the amount it can sell. It profits when the value it receives exceeds the cost to produce called Margins. These activities within the business are in two categories Primary and Support Activities. Primary; inbound & outbound logistics, operations, marketing, sales, and service. While Support Activities; procurement, technology development, human resource management, and general administration. These all add value by themselves or through important relationships. The adapting the Porter Value Chain framework is to identify the importance of activities according to their role in the product/service delivery process. In reference to 2 top Telecommunications companies chosen have merged, TMobile, and Sprint. Out of the top 5 in the industry, they both sit at 4th and 5th place. CASE ANALYSIS OF THE MERGER OF T-MOBILE AND SPRINT 3 CASE ANALYSIS OF THE MERGER OF T-MOBILE AND SPRINT Value Chain Application Primary activities are those that physically create a product, as well as market the product, deliver the product to the customer and provide after-sales support. Support activities are those that facilitate the primary activities, for example, HR. In reference to T-Mobile and Sprint Industry challenges with the new merger in real-time. After in depth research according Catalent’s white paper studies, for this merge there are 4 key activities that need to take place to create more value. And objectively more rank in the competition in the industry are to provide 1st, unlimited data consumption. To stay in competition all carriers have launched unlimited plans. Second is to increase availability on Wi-Fi shared platforms, for example Starbucks or McDonalds provide mobile Wi-Fi hot spots across multiple bands. Thirdly, we now have 5G technology being launched. And fourthly, Cable companies are responding to the rollout of 5G for core video and home broadband retention. MSOs Re-enter Wireless or Multiple-System Operator, which is an operator of multiple cable or direct- broadcast satellite systems serving communities or government. And much is being invested heavily to ensure high quality network experience. For this merger to be successful, their challenges amongst competition must be to enhance coverage obligations, provide affordable pricing plans, or cap price increases and competitive wholesale networking offering just to name a few. Human Capital & Retention. Take away my people but leave my factories and soon grass will grow on the factory floors. . . . . Take away my factories but leave my people and soon we will have a new and better factory. —Andrew Carnegie, CASE ANALYSIS OF THE MERGER OF T-MOBILE AND SPRINT 4 This statement gives a simplified meaning of the importance of Human Capital Their capabilities, knowledge, skills and experience of company employees and managers. Human Capital and retaining employees is a very important determining factor that is contingent upon the success of the company as defined on page 107 in course book. Retention is a challenge in our workforce today. T-Mobile and Sprint must career challenges, a good work environment and incentives to keep productive employees and management from wanting to leave or quit. Another major factor to retain is that firms must prevent the transfer of valuable and sensitive information outside the organization and failure would be to neglect fiduciary responsibility to shareholders. It is a huge hidden cost in company’s profits. People analytics tools are emerging to attract and retain talent. Data Scientist as well as technological software are employed to help predict who will leave and who will be the next vice president. In the book we are taught that the rise to prominence of knowledge workers is a vital source of competitive advantage and is changing the balance of power in today's business. In reference to T-Mobile and Sprint 26.5-billion-dollar merge. Understanding why employee become loyal or leave is essential information for recruiting strategies. Employees are company productive assets it should always be monitored on an ongoing basis according to the course book. T-Mobile and Sprint employee challenge. For Sprint, in the last decade has not been stable for employees wanting to stay. They have cut 6 billion in expenses and 15,000 job losses in less than a decade and is tribute to Sprints’ workforce and struggle to make a profit. CASE ANALYSIS OF THE MERGER OF T-MOBILE AND SPRINT To retain workers with Sprint, they are guaranteeing a minimum cash bonus for all noncommissioned employees last year in 2019. They have also revived an annual incentive trip to Hawaii for top performers and also have an invested program that recognize employee milestones and anniversaries. They have double down on training programs. Their adding new holiday and other perks like social hours and modern office renovations. 5 CASE ANALYSIS OF THE MERGER OF T-MOBILE AND SPRINT References White Paper. (n.d.). Retrieved from https://www.threehorizon.com/white-paper Seshadri, F. S. W. S. C. C. (2018, June 28). [Infographic] T-Mobile & Sprint Merger Market Concentration Risk Assessment. Catalant. https://gocatalant.com/blog/infographic-t-mobilesprint-merger-market-concentration-risk-assessment/ Value Chain Analysis of T-Mobile US Inc. (2018, September–Autumn). Essay48. https://www.essay48.com/value-chain-analysis/6190-T-Mobile-US-Inc-Value-Chain-Analysis 6
