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Change Management in a Joint Venture

Fridolfson, Johanna and Hamberg, Niklas (2009) MIO920
Production Management
Abstract
During the last years Ericsson Mobile Platforms (EMP) has seen increasing
industry consolidation and that their position in the value chain was
threatened. To avoid extinction from the market a merger was necessary to
strengthen their position in the value chain, avoid margin stacking and reclaim
the competitive edge needed for survival.
A thorough analysis of the different players on the market showed that the
most attractive partner was ST Microelectronics and their newly formed
company ST‐NXP Wireless. The final setup for the new company is a 50/50
joint venture created by bringing together ST‐NXP Wireless and EMP.
The deal was closed in early February 2009. During the time this thesis was
written, a large part of the... (More)
During the last years Ericsson Mobile Platforms (EMP) has seen increasing
industry consolidation and that their position in the value chain was
threatened. To avoid extinction from the market a merger was necessary to
strengthen their position in the value chain, avoid margin stacking and reclaim
the competitive edge needed for survival.
A thorough analysis of the different players on the market showed that the
most attractive partner was ST Microelectronics and their newly formed
company ST‐NXP Wireless. The final setup for the new company is a 50/50
joint venture created by bringing together ST‐NXP Wireless and EMP.
The deal was closed in early February 2009. During the time this thesis was
written, a large part of the important integration work was undertaken with
the agenda to make ST‐Ericsson into one unique entity with minimum
dependencies to the parent companies.
Merging two companies will inevitably kick off high and low organizational
changes, culture changes and system changes. The focus in this thesis was on
the change of ERP system, focusing on the purchasing system and processes.
The purpose of the thesis was to drive and secure change success of the
integration work during the spring and to analyze the work done in order to
provide some lessons learned and insight for the future changes. The
empirical data derives from the authors’ observations during their work. The
observations are divided into two cases. The first case is about change
management in change of purchasing system and the second case is about
cross functional synchronization.
The ultimate goal of change management is to minimize the negative impacts
of change on business performance. During the spring the authors have
identified the following attributes as keys for success:
• Having a clear vision and goals that can be easily communicated in order
to facilitate the understanding and acceptance of the change.
• Provide the stakeholders with incentives, connected to the vision and
goal, so that people feel motivated and committed.
• Secure and allocate the right resources from the beginning when
initiating the change project.
iv
• The people driving and participating should have or get the opportunity
to get the proper skills that are needed for the change.
• Last but not least, communication. The communication is the overall
most necessary tool of change. (Less)
Please use this url to cite or link to this publication:
author
Fridolfson, Johanna and Hamberg, Niklas
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
other publication id
09/5333
language
English
id
1978264
date added to LUP
2011-06-16 16:00:36
date last changed
2011-06-20 12:43:57
@misc{1978264,
  abstract     = {During the last years Ericsson Mobile Platforms (EMP) has seen increasing
industry consolidation and that their position in the value chain was
threatened. To avoid extinction from the market a merger was necessary to
strengthen their position in the value chain, avoid margin stacking and reclaim
the competitive edge needed for survival.
A thorough analysis of the different players on the market showed that the
most attractive partner was ST Microelectronics and their newly formed
company ST‐NXP Wireless. The final setup for the new company is a 50/50
joint venture created by bringing together ST‐NXP Wireless and EMP.
The deal was closed in early February 2009. During the time this thesis was
written, a large part of the important integration work was undertaken with
the agenda to make ST‐Ericsson into one unique entity with minimum
dependencies to the parent companies.
Merging two companies will inevitably kick off high and low organizational
changes, culture changes and system changes. The focus in this thesis was on
the change of ERP system, focusing on the purchasing system and processes.
The purpose of the thesis was to drive and secure change success of the
integration work during the spring and to analyze the work done in order to
provide some lessons learned and insight for the future changes. The
empirical data derives from the authors’ observations during their work. The
observations are divided into two cases. The first case is about change
management in change of purchasing system and the second case is about
cross functional synchronization.
The ultimate goal of change management is to minimize the negative impacts
of change on business performance. During the spring the authors have
identified the following attributes as keys for success:
• Having a clear vision and goals that can be easily communicated in order
to facilitate the understanding and acceptance of the change.
• Provide the stakeholders with incentives, connected to the vision and
goal, so that people feel motivated and committed.
• Secure and allocate the right resources from the beginning when
initiating the change project.
iv
• The people driving and participating should have or get the opportunity
to get the proper skills that are needed for the change.
• Last but not least, communication. The communication is the overall
most necessary tool of change.},
  author       = {Fridolfson, Johanna and Hamberg, Niklas},
  language     = {eng},
  note         = {Student Paper},
  title        = {Change Management in a Joint Venture},
  year         = {2009},
}