Verizon’s Acquisition of Vodafone: Will it benefit Vodafone or possibly come back to haunt them?

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Source:

http://www.aljazeera.com/news/europe/2013/09/201392163316939280.html

The link about is an article about the acquisition of Vodafone stakes in the United States by Verizon Wireless. The main changes that are going to occur will be structural which means there will be changes in the organization’s hierarchy, chain of command, management systems, job structure and administrative procedures. This is an internal change because the decision to sell their stake in the US mobile operation was made by the leaders of Vodafone. The acquisition  means that Vodafone will have to leave the US mobile market which could be bad for the company because it will mean that the businees is shrinking. However according to Vodafones main aims displayed below:

  • Vodafone can help to transform societies by bringing innovative products and services to our 404 million customers, 68% of whom live in emerging markets.
  • Our business focus on emerging markets, enterprise, data and new services gives us the ability to achieve our ambition to contribute to global development in this way, while continuing to grow our business at the same time, by developing commercially viable, scalable services that support sustainable development.

It is apparent, according to their goals, that Vodafone’s target market is developing countries and so selling their stake in the US does not hinder them from achieving their aims and objectives because USA is a developed country.

It is inevitable that this acquisition is going to cause downsizing and employees are going to be terminated, but from the perspective of the company and not an individual employee, the acquisition is more beneficial than less, as it leaves Vodafone to focus on the markets in developing countries, and provides the firm with additional funds gained from the acquisition.

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