Needs Assessment

Needs Assessment - Needs Assessment Sprint Nextel Merger...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Needs Assessment – Sprint Nextel Merger Lakshmi Balram Cordelia Chan Terrance McKnight Teachers College – Columbia University ORLD 5055 – Staff Development and Training March 11, 2010
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background Sprint Nextel Corporation (“Sprint”), a corporate entity forged from a merger between Sprint Corporation and Nextel Communications, is a leader in the telecommunications industry. Sprint offers a comprehensive range of wireless and wireline communication services. It currently ranks third in the industry, based on its 48 million customers worldwide as of the end of 2009 (Sprint Nextel Corporation - Company profile from Hoover's, 2010). It aims “to be number one in providing a simple, instant, enriching and productive customer experience” by demonstrating “integrity in all [we] do- not only through [our] words, but also in [our] actions”. Sales for 2009 were $32 trillion; however the company suffered a $2.4 billion net income loss, and a profit margin of -0.07%. Additionally, at year-end 2009, the stock price of the company was $3.95, compared with industry leader AT&T’s stock price of $30.27. Sprint currently ranks 62 nd on the Fortune 500 (Profile - Sprint Nextel Corp. (S), 2010). The catalyst for the merger occurred in February 2004, when AT&T Wireless and Cingular Wireless merged to become the largest telecommunications company in the United States. This combination was believed to achieve enough cost savings that it would put smaller companies, such as Sprint, at a competitive disadvantage. At that time, Sprint Corporation was the third largest wireless carrier; Nextel Communications was fifth. The theory was that combined they would have the capacity to obtain the latest and most cost-effective phones and equipment, paired with the most complete network available. In addition, over ninety percent of Nextel's 12.3 million customers were corporate employees; Sprint had an equally strong personal customer base. The merger to form the Sprint Nextel Corporation actualized in August 2005. The pairing of the two corporations brought a myriad of problems. Cultural integration was difficult, due to the incongruent matching of Sprint Corporation’s centralized financial-driven approach and Nextel Communication’s decentralized entrepreneurial approach. The two entities initially operated independently, each with its own separate headquarters, electronic billing system, and service
Background image of page 2
platform. There were also many employees who duplicate job roles. Customer turnover reached 2.4% in the third quarter of 2006 (Sprint Nextel Corporation - Company profile from Hoover's, 2010). These problems led to low employee morale, as well as talent loss due to headcount reductions and management turnover. The tension between the two camps of Sprint has risen recently, according to several current and former employees. Meanwhile, the company's stock value is plummeting, and it continues to lose customers and market share to its main competitors. Although most of the
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 15

Needs Assessment - Needs Assessment Sprint Nextel Merger...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online