Business Development: Impact of Comcast and Time Warner Cable Merger

This case study analyzes the proposed merger of Comcast and Time Warner Cable, focusing on the decision-making process, stakeholder analysis, and the implications of the merger. The analysis examines the strategic rationale behind the merger, including the goal of increasing market penetration...Read More

Running Head: MANAGEMENT 0
BUSINESS POLICY
SEMINAR

MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................2
Analysis......................................................................................................................................2
Conclusion..................................................................................................................................3
References..................................................................................................................................4

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Introduction
Decision making can be defined as the practice of selecting the best considering the
many alternatives. While selection of ideas and alternatives, management needs to undertake
effective decision making with proper organizing, directing and controlling various aspects of
an enterprise (Too & Weaver, 2014).
This case study analysis is based on the context of decision making process with the
planned fusion of Time Warner Cable and Comcast – a deal worth about $45 billion. It will
also be identified with the analysis that who are the major stakeholders that have been
affected, what was the key purpose or goal and it also provide glimpse of different activities
of decision making process. With regards to this, the analysis is also supported by the models
introduced this week.
Analysis
The aim of the fusion of Time Warner Cable and Comcast is to increase their market
penetration by controlling three-fourth of the total cable market. The major complexity of this
merger is the approval of FCC (Federal Communications Commission) and the
contemplations of various competitors such as Dish Network, DirectTv, Verizon and AT&T.
On the other hand, various stakeholders whose interest has been drawn to this merger
include , the Federal Communications Commission, Department of Justice, content providers
(like Netflix and Hulu) and satellite operators.
From last several times, Comcast has constructed operational and scale efficacies with
the help of different cable acquisitions and mergers in a very responsible and strategic
manner such as the successful acquisition of NBC Universal) (Cohen, 2014). This causes
various stakeholders to think that this merger with increase power on supplier and also be a
threat for their business. In relation to vital stages of the decision making process, the
problem here is to get the approval of government and Federal Communication Commissions
for the successful merger as various enterprises and businesses oppose this merger by stating
that this merger will negatively impact their business. Considering alternative phase, both

MANAGEMENT 3
Comcast and Time Warner Cable can publicly pledge that they will not undermine video
services like Hulu or Netflix and therefore no modifying streaming speeds either at the “last
mile” of the internet. It will assure its competitors that they allow same services from such
providers. Considering evaluation of alternatives, both Comcast and Warner can also urge
FCC to allow standalone broadband and online services that will assure the opponents to
market their own services with the acquired systems. The outcome of this decision making
process will allow both the companies to create important cost savings and other
proficiencies in align with the pledge to capitalise in its high-speed data services. With
regards to this, Time Warner Cable business can be bring to consumers by Comcast with
improvements to their bundle of services that Time Warner could not provide.
Conclusion
In the limelight of above discussion, it can be said that unification of Time Warner
Cable and Comcast will get them a competitive advantage over its competitors including with
offering competitors great cable services. Some of opponents of deal such as Dish Network
are making various contemplations however, the final call will be of FCC (Federal
Communications Commission) who needs to assess various aspects such as what markets will
be impacted with this merger and the stakeholders who will get affected whether positively or
negatively.

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References
Cohen, D. (2014). Comcast and Time Warner Cable Announce Merger, Detail Public Interest
Benefits and Undertakings. Retrieved from https://corporate.comcast.com/comcast-
voices/comcast-and-time-warner-announce-merger-detail-public-interest-benefits-
and-undertakings
Too, E. G., & Weaver, P. (2014). The management of project management: A conceptual
framework for project governance. International Journal of Project
Management, 32(8), 1382-1394.