Virtual Organization Essay

* * * By acquiring another company in the same industry first and merging with another * * organization a board of directors may succeed in higher earnings, giving their intensity of * * Industry experience and acquaintance however some possible disadvantages flourish. Company * * should examine all the aspects of this probable approach and acquisitions as well as the * * following disadvantages: Short- term financial consequences will be the most important because * * because the company if the company decided to proceed with an acquisition strategic reasons to * * firm up their competitive location not to essentially to amplify the short- term profits which may * * cause a turn down or decline in stock prices. The monopolistic tendency merger will draw the

* attention of regulators increasing the legal fees. Customer impact will be another important * * factor and disadvantage if the company acquires other business within the same industry can * * raised their prices given the reduce competition, customer can complaint about the cost * * incremetns and start seeking for more affordable products in the market place and will be guide * * customers choices and also weaker groundwork for upcoming earnings and profitability. * * Other advantage is integration, regardless of the excellent way of two companies handling * * the same industry, companies may have different corporate cultures and can take several months * * of effort to integrate basically diverse society as a result can impact the bottom line in layoffs or * * departures. * * * * * * * * * * * * References * Titman, S, Keown, A. J. & Martin, J. D. (2011). Financial Management Principles and * * Application (11th ed). Upper Saddle River, NJ: Pearson/ Prentice

References: * Titman, S, Keown, A. J. & Martin, J. D. (2011). Financial Management Principles and * * Application (11th ed). Upper Saddle River, NJ: Pearson/ Prentice Hall.