Merging companies

Páginas: 2 (384 palabras) Publicado: 19 de mayo de 2011
Merging or acquiring a company might or might not be a desperate move (some about-to-broke companies merge with another one to be “rescued”), but, nevertheless, in the case of huge successfulcompanies buying/merging with another one, despite of its size, means that their costumers will now be theirs and there will not be competitors jeopardizing the sales. All the companies want to be the onlyone providing their service or selling their product. That might sound great for businessmen and investors, but the truth is that it means poor quality, excessive prices, lack of costumer services… itwould become a monopoly. They would be able to sell their product at any price since we won’t have an alternative. I’m no economy analyst or businessman, I barely know about this subject, but as astudent and costumer that’s how things seem for me (I live surrounded by monopolies, with poor quality and service; but what can we do? I mean, we don’t have another option; we have to deal with it).Although, imagine the pressure for the employees, always competing with some more candidates for their position; having to work flawlessly, low-cost, faster, and keep improving every single day so theydon’t get left behind or out of the game, also known as “being fired”. Besides, working with a whole new company implies some (quite a lot) changes in the working method that the employees were usedto; maybe some new processes, different paperwork, new distribution, etc., all those things that you don’t mind until you have to deal with them.
So, bottom line, merging or acquiring companies can bevery fruitful for the company itself, the investors, actionists and the owner(s) per se, but neither the employees nor costumers would get a glimpse of the bright side of the move.
Yes, probably Ifocused in the worst of the cases that would be a monopoly, but that’s the most probable consequence. As usual, there are always exceptions, where the prime company keeps the other company’s name in...
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