Sprint is a one of the largest US global communication companies offering a suite of wireless and wireline communication products and services that are designed to meet the needs of its customers (The New York Times, 2008). Sprint offers a variety of wireless services and infrastructure products that are attracting to many customers and businesses. Sprint networks served around 54 million customers by the end of 2007 (Sprint 2008).
Sprint and Nextel both wanted to make best use of the resources they had so they thought that merging companies would be the best solution. The two companies believed that they could assist each other in new markets with their innovative skills and the merger seemed like a good idea. However, the companies did not evaluate alternative courses of actions. They did not consider how their decision would affect the future of the company with diversified culture and vastly different phone technologies (Network World 2008).
Sprint Nextel steps taken to merge together to far exceeds the long distance business of the company is weakening due to poor planning of the merge. At the same time, company’s market share and customers are dropping and stock value continues to decline. The company image has began to lose the trust from Wall Street as well. On top of all these issues, there was also a sense of mistrust on both sides and the conflict continued after the merger, when it was finalized in August 2005 (Business week, 2002).
Despite all the negatives the company has begun to realize cost savings as a result of the merger, and expects significant cost savings in years to come. The company is also seeking to increase the ratio of the employees more than decrease the ratio of employees. Both Sprint and Nextel executives have confidential meetings to resolve internal issues and retain employees. Sprint Nextel has several rewarding programs in place to motivate and retain its employees. Out of several different rewarding...