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Business strategy
Advantages and disadvantages of business merging.
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[QUOTE="King bell, post: 332212, member: 75687"] 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 [/QUOTE]
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