Taylor Ambulance Inc. could look to merge with another provider if it wanted to expand outside of the City of Kelsey. Strengths:
Merging with another Emergency Medical Services company would help establish a more broader customer base. It also has an advantage because merging is legally simple and does not cost as much as other forms of acquisition. The reason for this is because in this type of transaction, both companies agree to combine their operations. This type of transaction also allows for the company to gain more market share. Based on their successes with their current customers, the company would have history and a track record to show when they bid on new contracts that they are well established and well run. This would help get additional contracts and grow profits. Weaknesses:
A merger can create a conflict of objectives between the two companies. Sometimes, decisions are more difficult to make and it could cause disruptions in the operational structure. It also could create job losses as both companies have people performing the same job function. Management positions also can merge thus the need for management layoffs and those sometimes can be costly. Although these problems are considered weaknesses, if properly planned and discussed, weaknesses in a merger can be limited.
Once the dust has settled in the merger, the opportunities are endless. If research has been done and it makes sense, the merger will go through and will provide the merged companies with opportunities to grow their profits. The company will combine management strategies and they will be able to compare notes and see what has worked in the past and what has failed. They will be able to map out a 1-5-10 year plan and put the resources in place where needed. This will also help the consumer because with an Emergency Medical Services company, you want a company who is experienced and has all the logistic of life saving services operating at a high...
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