Case Study Of Teoco

TTI was in Israel. Ultimately, the two companies had a completely different point of view on management and financial spending. TEOCO’s management was cost-conscious while TTI was willing to overspend on shows and other marketing activities (Calo et al., n.d.). Finally, the third problem associated with the means of acquisition as the way of how TEOCO was doing its business. The case mentioned the differences of TEOCO’s post-acquisition between TA and TTI and how the company would be able to handle debt and financial leverage to acquire a larger target (Calo et al., n.d.).

Problems with Shared Leadership Another problem was concerned with TEOCO’s unique organizational culture and philosophy. For this reason, what makes TEOCO different from

TEOCO was known to have a unique employee ownership where all employees have a responsibility to participate and control the company’s matters. This is also referring as “employee empowerment” which describes the ability to give employees the power and autonomy to control and make decision regarding their organizational tasks. However, what would happen to the CEO’s power if authorities are given to all employees? The case describes TEOCO’s slogan as “We’ll take care of our employees, they’ll take care of our clients, and that will take care of the business.” (Calo et al., n.d.) If Atul gave all his employees the power to control the organization, it was likely that the relationship and boundaries between the upper and lower levels would become broken. Even though TEOCO successfully acquired a larger target company like TTI Telecom, the impact on the culture of employee empowerment/ownership and TEOCO’s strategic HR policy would even pose a greater challenge because TEOCO had to manage another 300 employees from a different

In dealing with the size, location, and culture of the target company, setting a flexible policy focusing on core values, value proposition, and shared leadership will contribute to the success of TEOCO. The positive impact of embedding TTI’s culture into one umbrella would enable the company to provide unprecedented value to the international clients and increase the profitability of global communication service business (“TEOCO to Acquire TTI Telecom,” 2010). In contrast, TEOCO would likely to face a complexity of network management since the TTI acquisition would strain Atul’s role as a chief in HR (Calo et al., n.d.). On the other side, this acquisition has brought an additional executive member into the board of directors, Eitan Naor, who would significantly contribute to the top management team (Calo et al., n.d.). The pros of recruiting externally would help to enhance the ability to innovate, reverse a poor performance and compete in a rapid growth, according to Hitt et al., (2014). On the other hand, the drawbacks of hiring externals would dilute the organizational culture as well as a conflict of different leadership styles. Even though Atul was highly recognized for his recruiting and hiring skills, it might not be beneficial or essential for TTI (Calo et al., n.d.). The case described that the