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Kenexa Case Solution

Solution Id Length Case Author Case Publisher
2687 1348 Words (6 Pages) Joerg Dietz, Chetan Joshi Ivey Publishing : 9B07C004
This solution includes: A Word File A Word File

Describes how a consulting firm is measured and assesses the effectiveness of high-performance people management principles in a retail bank. It also provides a discussion forum for the issues involved in an organization's pursuit of competitive success through its staff. The Kenexa case study is essentially a Harvard Business Review case study, but it takes a new way to give the reader a simulated practical experience. It helps the reader to get acquainted with actual business world issues prevalent in today's economies. The Kenexa case involved a crucial problem for the company that needed to be located, examined, and addressed through original thinking. In fact, the analysis of the case and solution for Kenexa is shown in this work. The undergoing strategy utilized to conduct the analysis is described, and the pertinent tools employed to arrive at the result are given.

Following questions are answered in this case study solution:

  1. Why did IBM buy Kenexa?

  2. What did IBM buy? The common stock of Kenexa (control 100%) or title to assets/assumption of liabilities from Kenexa directly.

  3. How much did IBM pay for Kenexa? In what form cash, IBM stock, combination?

Case Study Questions Answers

1. Why did IBM buy Kenexa?

This acquisition aims to help IBM enter the international talent management industry. Building a "smarter workforce," as described by IBM (i.e., building the Smarter Planet). In retrospect, CEOs tell us that building stronger global talent is their number one challenge, and meanwhile, the purchase is all about IBM expanding its business in the global market. The feature that attracted IBM the most about Kenexa was its innovative approach to finding talent. It was something that none of the other businesses in the market came up with, and thus IBM agreed to buy Kenexa no matter what. IBM knew that an innovative approach like this could help them earn tons of revenue even if they bought the company at a higher rate than the present. Another reason that IBM bought Kenexa was that it was being sold at a price much lower than what it was worth

IBM wants to use Kenexa's technologies and knowledge to create more social networking capabilities for business clients looking to improve staff collaboration. Other software developers have also lately acquired businesses that provide social networking services for businesses. Microsoft Corp. is purchasing Yammer for $1.2 billion, and Inc. purchased Buddy Media for $689 million. In other words, this year, Oracle has acquired at least three social software services.

Kenexa competes in the markets for talent acquisition, also known as strategic recruiting, by keeping the employees satisfied and tracking their performance while training, which is essentially skill development and upgrading. Last but not least is performance management which is managing employee goals and performance.

Along with the company Taleo-Oracle, Kenexa offers two state-of-the-art recruiting platforms and the Kenexa 2X platform, an inclusive talent management solution. Finally, the business offers a premier learning content management system that competes in the rapidly expanding mobile learning industry.

Saba, SAP, Taleo, and other HR software systems are now the focus of consulting services provided by BM after a protracted absence from the HR applications industry. However, IBM bought Cognos and SPSS and wants to sell more software, so this action gives the business a fresh chance.

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