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AOL Time Warner - Managing a Business

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AOL Time Warner: Deal of the Century Turns into Disaster of a Lifetime

Questions:

Why did the media refer to the merger as the deal of the century?
Why was Time Warner eager to merge with AOL?
What challenges did AOL and Time Warner face as a merged company?.
Visit the TimeWarner Website (http://www.timewarner.com). Review the site to get the latest news about the fate of the merger. How is the company doing financially? How much turnover has occurred among high-level executives? If any parts of the business have been sold off, what has the acquiring company said about future prospects?
Harley-Davidson Drives from Dysfunctional to Cross-Functional

Questions:

During Teerlink's tenure as Harley's Chief Financial Officer, was the
organization structure flat or tall? Centralized or decentralized?
Explain your answers.
As Chief Executive Officer, how did Teerlink change the organizational structure?
Why does Harley-Davidson include outside suppliers on its cross-functional teams?

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Solution Summary

Managing A Business
AOL and Time Warner
The AOLTW merger was heralded the "Deal of the Century" due to the fact that the combination of the two companies would 'produce the first fully integrated media and communications company' (Bovee, Thill, & Mescon, 2005, p.162). The companies planned to feed off of each other's success and promote each other after signing this $160 million dollar merger.

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Managing A Business
AOL and Time Warner:
The AOLTW merger was heralded the "Deal of the Century" due to the fact that the combination of the two companies would 'produce the first fully integrated media and communications company' (Bovee, Thill, & Mescon, 2005, p.162). The companies planned to feed off of each other's success and promote each other after signing this $160 million dollar merger. It appeared very possible that together, they could dominate access to the Internet.
Time Warner had just failed miserably at attempting to move into the digital era and had lost a lot of money. TW was excited at the prospect of taking part in the Internet revolution and was confident that the company would profit greatly from the merger.
As a merged company, AOL and Time Warner had to deal with jeers from critics and shareholders who were not convinced the company could succeed. Shortly after the merger was made legal, the U.S. was hit with a recession that rocked the dot-com world. As a result, AOL ...

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