--%>

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 : Define Expenditure Expenditure : The

    Expenditure: The expenditures reported on a department’s annual financial reports and “past year” budget documents comprises of amounts paid and accruals (comprising encumbrances and payables) for obligations made for the fiscal year

  • Q : Why do assets equal the sum of total

    Why do overall assets equal the sum of total liabilities and equity?  Describe.            Assets = Liabilities + EquityAssets are the items of value business owns. Liabilities ar

  • Q : Describe the financial leverage effect

    Describe the financial leverage effect and what causes it? Explain the potential benefits and negative consequences of high financial leverage? Financial leverage is the additional volatility of overall income caused through the presence of fix

  • Q : What is Indirect Costs Indirect Costs :

    Indirect Costs: The costs which by their nature can’t be readily related with a particular organization unit or program. Similar to general administrative expenses, indirect costs are dispersed to the organizational unit(s) or programs that bene

  • Q : Explain Merit Salary Adjustment Merit

    Merit Salary Adjustment (MSA): The cost factor resultant from the periodic raise in salaries paid to the personnel occupying authorized positions. The personnel usually receive a salary raise of 5 percent per year up to the upper sala

  • Q : Seasonal variations and secular trends

    Normal 0 false false

  • Q : Slope of the budget line and the

    Consider someone won $15 on a Lotto Canada ticket at the local 7-Eleven & decided to spend all the winnings on bags of peanuts and candy bars. The cost of candy bars is estimated as $.75 and the cost of peanuts is $1.50. Plot the data in this table as a budget li

  • Q : Question based on imposesing tax Given

    Given equations describe market for widgets                         Demand: P = 10 - Q Supply: P = Q - 4

    Q : Technological improvement of production

    Normal 0 false false

  • Q : Describe accumulated depreciation

    Describe accumulated depreciation?Depreciation is the allocation of an asset's primary cost over time. Accumulated depreciation is the sum of all the depreciation cost that has been identified to date.