OverView:
You are on the executive board of an information technology firm that provides trafficking software to the trucking industry. One of the firm
Solution
BENEFITS OF MERGER OR ACQUISITION:
1. It is helpful in obtaining quality staff and additional skills in the organisation.
2. increases funds and addtional assets.
3. Cost management becomes more effective. Dues to shared marketing budget there is an reduction in cost and overheads.
3. helpful in value generation.
4. reduces the competetion.
5. more wider customer base.
6. corganisation enjoys economies of scale.
demerits:
1. there can be diseconomies of scale. a frim can lose the lose the control and can struggle in motivation their employees.
2. there are less choices for customer become of reduction in competetion lvel.
3. few workers or employees may lose theri jobs
MERITS OF INTERNAL EXAPNSION:
1. more control in the organisation. there is no fear of loss of control.
2. high motivation to employees as company will give them chances for growth with the growth of organisation.
3. enjoyment of economies of scale.
demerits:
1. more costly.
2. limited resources.
3. high traning cost.
on the basis of above discussion it is clear that merger is more advantageous for the company as this is less costly and increases the resurces of organisation. it also provide benefits of specialisation. there are no training costs because the employees of the organisation with which we are merging our organisation are already trained and specialised.
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OverView- You are on the executive board of an information technology.docx
1. OverView:
You are on the executive board of an information technology firm that provides trafficking
software to the trucking industry. One of the firm
Solution
BENEFITS OF MERGER OR ACQUISITION:
1. It is helpful in obtaining quality staff and additional skills in the organisation.
2. increases funds and addtional assets.
3. Cost management becomes more effective. Dues to shared marketing budget there is an
reduction in cost and overheads.
3. helpful in value generation.
4. reduces the competetion.
5. more wider customer base.
6. corganisation enjoys economies of scale.
demerits:
1. there can be diseconomies of scale. a frim can lose the lose the control and can struggle in
motivation their employees.
2. there are less choices for customer become of reduction in competetion lvel.
3. few workers or employees may lose theri jobs
MERITS OF INTERNAL EXAPNSION:
1. more control in the organisation. there is no fear of loss of control.
2. 2. high motivation to employees as company will give them chances for growth with the growth
of organisation.
3. enjoyment of economies of scale.
demerits:
1. more costly.
2. limited resources.
3. high traning cost.
on the basis of above discussion it is clear that merger is more advantageous for the company as
this is less costly and increases the resurces of organisation. it also provide benefits of
specialisation. there are no training costs because the employees of the organisation with which
we are merging our organisation are already trained and specialised.
