Virtual Organization Essay

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