Advantages and disadvantages of business merging.

[Axis]

It can be an interesting intention when two or more business intend to merge together to become one distinct company or business organization. In this way they combine resources, workforce and intellectuality into the production of goods and services which in one way or the other boost productivity as well as growth and development between the two businesses. In as much as business merging can be an effective intention but yet it can be necessary to consider the ops and downs so as to wage the possibility for business merging to be a successful idea if thought about. One of the major disadvantage of business measure is that it always lead to disagreement, disagreement here could come as a result of one individual making decision which every members of the two businesses merging together most obey.

In theory and in practice this shouldn't be the case, because there must be what is known as check and balances of ideas and decision especially on the management sector of the business organization. To be more specific what I am trying to say is that, as the manager tries to make a decision they must also be another individual possibly a director who checkments the decision of the manager and possibly gives room for adjustment to such the decision, so as to favor the interest every member of the business organization.

 

[King bell]

Business merging is a process of combining two or more companies to form a new one, which comes along with its own advantages and disadvantages. The benefits include economies of scale, increasing market share, synergy, access to new markets, complementary resources, diversification , talent pool improvement and financial strength. Cultural differences can result to conflicts, communication problems or lower employee morale. Potential challenges of integration may be complicated and time consuming as well as regulatory hurdles and antitrust concerns raised. It involves huge costs to merge and resistance by employees can lead to poor productivity and staff turnover. Loss of identity affects brand loyalty as well as customer relationships. On the other hand, reducing innovation while operations overlap can also be difficult.

In order for organizations to make the right decisions regarding the issue at hand it is important that they carryout in depth due diligence do evaluation of potential synergies involve themselves in coming up with a comprehensive integration plan

 

[btaliat]

Though, it may be looked at from two angles. Merging of businesses is not really a bad idea, in fact, it is seen as a way of strengthening the companies involved. Most times, when a business is about to be declared insolvent, companies may come to the rescue of each other by merging.

However, the issues of domination always occur. One company will want to be lording over the other. This is always the bone of contention when there is a merging of two or more countries. And if not properly resolved may collapse the companies further more.