LeHoaiPhuong_EMS2 - 06071140 What problems two company may...

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06071140 What problems two company may encounter in merger? There are many reasons which make many companies merge. Ambition of expanding of big corporation takes over small companies to become larger. Some small companies want to enlarger but it has not enough capital .Thus it will find bigger partner to merger. Besides, there are some branches which want to save product cost by combining product units together. Moreover, some companies must merge because of the difficulties that other companies are completing with them. So merger is the trend of many corporations. This makes some companies develop stably but many others failed because they must face problems which merger brings. Some big problems which the corporation need to solve when they merge is management, cultures and business strategies. Firstly, they will see some difficulties about management. Two companies may not give common ideas about their term. They will complete about functions, who will take control…and have different structure company. After the deal, both of them need to change their structure which they have fixed a long time. This is necessary to have a good structure system. Thus it causes some argument. New system can keep main sections and get the sack some unnecessary sections. This causes employees of both companies unsatisfied. So protests may be raised against measure.
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This note was uploaded on 07/30/2011 for the course FIN 202 taught by Professor Hung during the Spring '11 term at Keuka.

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LeHoaiPhuong_EMS2 - 06071140 What problems two company may...

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