Factors which make it difficult/hinder for firms to Merge
- Fear of complexity in management in form of bureaucracy
- Fear of losing independence enjoyed by individual firms
- Differences in aims and objectives of individual firms
- Government policy which may be aimed at discouraging merging of firms
- Fear of losing employment due to merging for example the managers
- Fear of paying high taxes by one single big firm
- Fear of losing personal contact with the clients of the firm.
- Fear of under taking high risks associated with large scale operation
- Fear of not achieving the optimum level of production due to a large scale of production
- Fear of diseconomies of large scale. For example marketing and technical diseconomies of scale
- Market potential may favor competition which forces firms to remain independent.
CATEGORIES Economics
TAGS Dr. Bbosa Science
