--%>

Pitfalls when two companies merge

Other than pricing, some pitfalls that consumers might have to deal with when two major companies merge.

E

Expert

Verified

The way the companies treat customers sometimes have cause for consumers to feel the merger was not such a good idea. The customer satisfaction rating after a merger can go way down, with the merging of two companies software changes have to take place, employee’s going into new training and general knowledge of the new company can cause the consumers to take the brunt of the merge.

The customers often walk away from a merger of a company feeling very dissatisfied and when that happens it take years for the company to regain the trust again. Another area of mergers that customers have to take the brunt of the merge is when they take place the new company ends up closing some stores or offices. Which can mean the customers now has to go to another location or may not have the product available to them at all anymore. This is very discouraging for the consumer.

   Related Questions in Finance Basics

  • Q : Question based on consolidated balance

    Normal 0 false false

  • Q : Describe Form 22 Form 22 : It’s a

    Form 22: It’s a department’s request to transfer money to the Architectural Revolving Fund (example, for building enhancements), reviewed by the Department of Finance.

  • Q : Why coefficient of variation is better

    Why is the coefficient of variation frequently a better risk measure while comparing different projects than the standard deviation?Whenever we desire to compare the risk of investments which have different means, we employ the coefficient of va

  • Q : Financial Account & International fund

    Question: The Financial Account captures international fund flows due to i._____. ii. Briefly Explain? Answer: (i)    Purchase and selling of assets (ii)   The Financial Account captures th

  • Q : Capital investment appraisal methods

    The capital investment appraisal methods like NPV, IRR, ARR, PV and Time value of money have become irrelevant post Celtic Tiger. Due to the depth of the recession companies do not have budgets to invest. Explain? At first use this

  • Q : Describe advantages and the

    Describe advantages and the disadvantages of new stock issue? A new stock issue increase funds and decreases the riskiness of the firm. This also tends to send a negative signal to the market as many investors believe a company would just sell

  • Q : Question related to MPC Normal 0 false

    Normal 0 false false

  • Q : What is Cash Flow Statement What is

    What is Cash Flow Statement: It is a statement of cash receipts and disbursements for a particular time period.

  • Q : Aggregate expenditure Normal 0 false

    Normal 0 false false

  • Q : Describe the bird in the hand theory of

    Describe the bird in the hand theory of cash dividends. The bird in the hand dividends theory says that dividends attained now are better than a promise of future dividends. Uncertainty is resolved while a dividend is paid.