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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Through SWOT analysis (see Appendix XX) the internal strengths and weaknesses and the external opportunities and threats are brought together (Boddy). Especially important section here is ‘Weaknesses' as it shows where improvements within the merged company are necessary (see Synergies).

Lewin's Force field analysis shows the restraining and driving forces that change the temporary dynamic equilibrium in environment of company. (Boddy 296; 20)

Forces for

Forces against

• First in the market that has done quadplay to that extent (5)

• Potential new customers that need personalized packages without services they don't need (4)

• Relatively easy to make implement the product as market research is being constantly done (3)

• Infrastructure is already in place (3)

• Brings all telecommunication services together in one package – no need of different providers (2)

Tetra by BT

• Is of no use to corporate buyers who already have different deals, so it applies only to individual buyers (5)

• Individual buyers already have chosen providers so this limits the target market (4)

• People might find it confusing and not like it or find it useful (3)

• Public opinion of terrible customer service may drive potential customers away (2)

• Affects current packages and deals (1)

+17

-15

Thus, the introduction of Tetra by BT can be justified through Lewin's Force field, PESTLE, SWOT, and Porter's Five force.

MARKETING

From marketing's perspective, attention should be paid to spending behaviour of target markets and neki beki.

Boston matrix helps identify the projects that need prioritising in a way that ‘star products' and ‘question marks' get money from ‘cash cows' (21). Tetra by BT would fall into ‘star products' category because of favourable dynamics on market.  

SYNERGIES

According to Vizjak (25) strategy for synergies ‘should be based on identification of affinities inside the firm, up-front quantification of synergy potential, formulation of a clear horizontal strategy, … and implementation of organizational mechanisms to eliminate the barriers to synergy realisation'.

Starting with identification of affinities, Porter's value chain for BT (see Appendix XX) shows that while outbound logistics (4G and fibre) will be BT's selling point, they are also the ones that need the most improvement alongside with service. Similarly, ‘Weaknesses' in SWOT analysis (see Appendix XX) show areas of necessary improvement in a more straightforward way.

Acquisition of EE has put BT in a unique position on the market, as BT has the perfect opportunity to successfully implement quadplay in their product range and at same time solve some of the weaknesses. EE has approximately 553 retail stores all over UK (18) which could be put to use by BT as walk-in stores for their products. Help on new offers, faulty products and service queries should be provided from there by well-trained employees in a very Apple Genius bar way. The stores should keep the EE logo, with a smaller BT logo underneath it.

As both companies are known for poor customer service, joint call centres built in UK are a perfect solution to this. Simultaneously it would provide more jobs for people and increase their customer satisfaction with faster response rate.

During a merge of companies, speed in making changes is important. If the changes are not implemented during the first fiscal year, they will most likely not be implemented at all (26). Remaining realistic with cost-savings is of great importance as one-time costs and future projections are likely to stray from the predicted course (26).  

Some synergies are already taking place, with BT announcing BT Mobile which runs on EE's network. Similarly, other synergies concerning managers for both companies should not pose a problem as companies' values are similar.  

TALENT MANAGEMENT

Talent management deals with retaining and obtaining best people available while simultaneously keeping them motivated and providing sources for growth on the long-run.

According to Kanter (27) employees work better and are more likely to stay with merged company if managers keep them informed, give them certain control over their actions, make the workload manageable and leave habits and routines of employees as they are or change them slowly. With that taken into consideration, some people are going to leave no matter what, but it is important to keep the most diligent.  

BT and EE endorse similar values and show comparable mission statements along the lines of improving their service and their customer experience, so adapting new company values should not be a problem for managers. Keeping employees and managers motivated during the times of change, however, may be more problematic. This is why pursuing the open system model is proposed. It draws attention to links between the internal parts of the system, between the whole system and the outer environment (28) to create a supportive environment.

Basing on open system, respect of psychological contract is very important for employees' motivation, productivity, and co-operation. Breaking of the contract from employer's side is seen as not respecting employee's opinions and knowledge (23). According to Maslow's hierarchy of needs which puts self-actualisation atop the pyramid of needs (23), ‘people seeking self-actualisation look for personal relevance in their work, doing things that matter to them' (22), making them motivated in a more intrinsic manner. This behaviour is favoured with McGregor's Theory Y which supports conditions in which creativity, imagination and ambition can be expressed in a way they co-create an inspired working environment, resulting in positive results for everyone (22).

Herzberg's two factor theory provides a different outlook, taking into account motivation factors as well as hygiene or maintenance factors (22). Motivation highly depends on the person – if manager is working on an intrinsically challenging and rewarding task, they are more likely to be motivated.  

Both intrinsic and extrinsic rewards are valued by people. From Maslow's, McGregor's and Herzberg's theories under assumption people want both intrinsic and extrinsic rewards, ‘job characteristics theory' was developed by Hackman and Oldham (29). By taking care of providing job characteristics that satisfy psychological states by using implementing concepts, the motivating potential of job and therefore motivation of employees increases. For example, workers in call centres could be motivated by de-routinizing their jobs by giving them a chance to work in a store and help people face to face, which would give the workers the feeling of autonomy. Publicly endorsed importance of good customer service could be also motivating as it would make them feel more significant to the company.

Kle dodej screenshot iz knjige

REBRANDING

When Orange and T-Mobile merged to create EE, their respective names remained the same, however all new services and products were named and branded as EE. A similar approach is being proposed here, EE and all its current products shall keep the name, but all future services shall be branded BT. It is suggested to keep website ee.co.uk live but make is to that it is redirected to a BT domain. Tabs for EE&Me shall stay as they are, including EE for Orange and T-Mobile, which shall be renamed into BT for Orange and T-Mobile. EE's retail stores shall keep their logos for a year, while adding a smaller (by BT) underneath it. All formal documents from BT or EE should have the header of BT.

BT's logo shall change so it incorporates one of EE's recognizable circles. For colour schemes it is proposed to keep the BT's signature colours on all platforms.

CONCLUSION

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