Do businesses scout their competitors? Do they compile reams of data like a NFL team breaking down their opponent’s tendencies? Is there the business equivalent of tracking every pitch of every game played by all 30 major league baseball teams? Will the information they gather affect the conditions of a proposed merger? Certainly financial metrics affect terms, but do diverse corporate cultures affect negotiations? Change the outcome? More than once company A has tried to “buy” the reputation and culture a younger, “hipper” company.
Its happened more than once with varying success (Time Warner/AOL comes to mind).
From its inception in the early 1980’s McCaw Cellular Communications aggressively built the nation’s first significant cellular network. By the mid-1990’s McCaw Cellular was the leading wireless carrier in a rapidly growing industry and the large, incumbent landline phone companies began to take notice. In 1994 AT & T struck an accord with McCaw Cellular to purchase the company for $11.5 billion setting into motion one of the most significant financial transactions of the time and the combination of two very different cultures. The more relaxed, entrepreneurial no tie environment of McCaw versus the big corporation suit and tie atmosphere of AT&T.
To finalize the transaction members of the board of directors and senior management teams of both companies met. Prior to the meeting Craig McCaw was asked by members of his team what they should wear. Having scouted his soon to be partner well and knowing quite a lot about AT&T, as well as proper business formalities, Craig advised his team to wear a suit and tie. AT&T’s management and board knew a bit about their new partner as well and showed up to that first meeting in slacks and shirts – no ties.
Not the first and certainly not the last time this has happened, but I am sure both companies knew instantly they had scouted their opponent well.
Here I Write 