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4 pages/β‰ˆ1100 words
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APA
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Management
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Essay
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English (U.S.)
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Topic:

Sprint and T-Mobile Merging Decision-Making Analysis

Essay Instructions:

Since 2013 there has been on-and-off talk of Sprint purchasing T-Mobile. (They are the third- and fourth-largest mobile phone carriers in the United States.) This move is led by Masayoshi Son, the chair of Japanese conglomerate SoftBank, which owns Sprint. Mr. Son is a bold entrepreneur who is known for his penchant for risk taking and desire to be a global leader in the telecommunications industry. If the merger ever goes through it would result in a merger of the third and fourth largest mobile phone carriers in the United States.
Most recently, it appears that the merger will not go through. But the fact that talk of this merger has been rumored for quite a long time suggests it must have been a very difficult decision for Masayoshi Son. Such a large-scale merger brings great benefits in allowing a combined Sprint/T-Mobile to compete with industry leaders AT&T and Verizon. But mergers are always very risky and require a huge amount of debt to finance, not to mention overcoming numerous regulatory hurdles.
For this assignment, thoroughly review the background materials on the Vroom-Yetton* decision-making style model. This involves answering seven questions relating to a decision and using the results from the model to determine your decision-making style. Make sure you understand the model, including the seven questions and the path diagram that you follow in order to find the preferred leadership style. The Vroom-Yetton model allows you to choose between different levels of autocratic, consulting, or group decision-making styles.
Vroom, V. (1976). Can leaders learn to lead? Organizational Dynamics, 4(3), 17-28.
After you have reviewed the required background materials including Vroom (1976) and Rigolosi (2005), do some research on Sprint’s decision whether or not to purchase T-Mobile and think about what kind of answers you would give to the seven questions involved in the Vroom-Yetton model. Here are some articles on the rumored Sprint/T-Mobile merger to get you started:
D., & De La Merced, M. J. (2014, Jun 05). T-Mobile and Sprint zeroing in on merger. New York Times [ProQuest]
Yao, D. (2014). Moody's: Sprint/T-Mobile merger faces negative free cash flow until at least 2018. SNL Kagan Media & Communications Report [ProQuest]
De La Merced, M. (2014, Aug 07). Sprint ends its attempt to purchase T-Mobile. International New York Times [ProQuest]
Once you have finished your research on the Vroom-Yetton model and on the merger, write a 4- to 5-page paper addressing the following issues:
1. Imagine you are Masayoshi Son and have to decide on which decision-making style to use. Go through the seven questions from the Vroom-Yetton model and give your answers based on what you think the main issues are in the decision of whether or not to purchase T-Mobile. Explain your reasoning behind each answer
2. Go through the diagram in the Vroom-Yetton model and, based on your answers to the seven questions from Question 1, see what kind of decision-making style is recommended for Masayoshi Son. Use the diagram (Figure 6.2) on page 118 of Rigolosi (2005). Are you surprised by this answer? Is it the kind of decision-making style you would personally recommend based on your own research?
3. Conclude your paper with a discussion of your own opinion as to the usefulness of the Vroom-Yetton model for choosing your decision-making style. Would you recommend that corporate executives receive training in this model? Is there any ways in which you think the model could be improved? Explain your reasoning.

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Leadership & Decision-Making Styles - CLP
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Sprint and T-Mobile merger decision-making analysis
Sprint's purchase of T-Mobile was a difficult decision given how long its rumors took without concrete action. The debt-related difficulties that this merger of the telecommunications giants in the United States of America and the opposition to the decision by the federal administration made the decision even more complicated. Let's move on to an analysis of the possible approaches concerning the decision-making of this merger according to the Vroom-Yetton model.
The answer to the first question of whether the quality of the decision is important is yes. Indeed, the vision to build a strong company capable of conquering the two great firsts of the USA is a good idea considering the stature this could provide and the number of customers the merger will have. The company resulting from the merger of Sprint with T-Mobile would be the one with capacities close to those of AT&T and Verizon. It would also make the pride of its envious leader to be a world leader in the field of telecommunications.
The answer to the second question of whether the team's commitment to the decision is important is no. Masayoshi Son, owner of Sprint, as described above, is known for his risk-taking. He also has the financial resources to buy T-Mobile to follow his dreams of grandeur, which won't give him much incentive to dabble in other people's ideas. They will surely be able to go along with his decision, whether they want to or not, although it is not devoid of medium-term consequences.
The third question is whether one has the necessary information to make a decision alone. The answer to this question for our case is no. The merger described has several issues to consider and of varying complexity, ranging from the debt management problem to the consideration of the decision by the federal government. It appears that it is good to go through the process considering team members' and experts' ideas.
The answer to the question of whether the problem is well structured is a yes since the owner of Sprint and his team are well aware of the issues that the merger with T-Mobile would cause. Despite the difficulties associated with this decision and its possible consequences, the described desire to be a leader in the field is the leitmotif of Masayoshi Son.
If Sprint's owner decides to buy T-Mobile, the team will buy into it. His technical and financial capacities, which would allow him to convince as to his power to operate the new company, will make the team understand. The great concern would result from worries about the health of the company in the period during which it would be in a negative cash flow due to debts and the great cost occasioned by the purchase.
The team shares organizational goals. Typically, the team rallies around the system, and the system builds on leadership (Rüzgar, 2018). Leadership oversees the life of the company and its growth. For our case in question, the decision to buy T-Mobile by Sprint to become a leader in the telecom world is in itself a good decision that the team would find good...
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