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The Merger of NTL and Telewest: Problems Related to Growth - Essay Example

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For this study, the researcher will conduct an industry analysis using SWOT Analysis, PEST Analysis, and Porter’s Five Forces Model. Prior to conclusion, the researcher will discuss the goals of NTL:Telewest; the benefits of the merger; and the problems that may arise due to excessive growth…
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The Merger of NTL and Telewest: Problems Related to Growth

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Merger of both companies could result to economies of scale and increase its competency in UK’s communications industry. Combining the assets of ntl:Telewest increases the opportunity to borrow large sum of money from the banks. Deregulation law on communications industry resulted to a tight. In line with the rapidly changing technology, merger and acquisition is considered the easiest way to expand the company’s network and infrastructure. One of the major problems that could arise from mergers is the misalignment of organizational culture, values and goals. Failure to acknowledge these three important issues could cause the failure of newly merged companies. To enable merged companies to succeed, its top executives should develop good leadership skills; promote open communication among the employees as well as teamwork.

The merger between ntl Incorporated and Telewest Global was successfully completed in March 2006. This major event made ntl:Telewest the largest provider of residential broadband, the second largest fixed-line telephony company, and the UK’s second largest pay TV provider. (ntl:Telewest Business, 2007c; Business Wire, 2005; Goldstein, 2005) In line with the merger, the company is capable to offer quadruple play of TV, Internet, fixed and mobile telephony services under one company because of its decision to acquire Virgin Mobile. Today, the company delivers a complete portfolio of data, voice, and Internet solutions nationwide. ...Download file to see next pagesRead More
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