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Mergers are better than acquisitions

Introduction.

Business acquisitions result in total control of the company’s resources in mergers companies put

their resources together for a mutual benefit it could be to win a competitive advantage, to

expand the scope of operations and reduce the costs such as taxation. Mergers have numerous

benefits compared to acquisitions

Acquisitions cause labor redundancy

Acquisitions can cause duplication of employee functions. It can cause additional expenditures to

the company for instance in the payroll when two employees perform a similar duty. Such cost

can be avoided in merging of business because it allows the managers to combine and select the

best talent that can enable it to maximize on the strengths to win a competitive advantage.

Acquisitions reduce motivation at work decreasing productivity and these can lead to loss-

making in the long run (Kozlov, A.V., and D.V. Tupikova). Mergers can reduce redundancy as it

allows both the companies to implement a strategy that will be of benefit to the companies

involved.

Acquisitions result in Conflicting objectives

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In circumstances where the corporation acquired has different goals, the resistance of agreement

may undermine the efforts of the two companies. For instance, if one company goal is to expand

the operations and the other business target is to reduce costs the two conflicting objectives may

cause resistance among the stakeholders involved. In such circumstances, the benefits may be

minimal rendering the whole procedure unprofitable. Mergers facilitate expansion and growth

(Kozlov, A.V., and D.V. Tupikova). Through joining the resources together, the business gets

adequate resources that can allow the company to venture into new markets.

conclusion

Mergers allow the company to deal with international competition. Through pooling of financial

and human resources, the company can implement strategies that will enable it to compete

favorably in the market. The resources facilitate research and development causing the growth of

the business.

Business need to invest more in digital marketing and social media

The environment companies operate in is dynamic. Changes take place on a daily basis it is

essential to implement on marketing strategies that will enable the business to gain a competitive

advantage. Digital marketing plays a vital role in the success of modern business.

Reduced cost.

Digital marketing is the cheapest means of selling the products or brands in the market in

comparison to other advertising forms such as television. The cost to advertise on media is

extremely high, and it may not be able to reach a broad audience. Digital marketing allows the

individual to arrive at a large market and therefore increasing the demand for the products. Sites

such as Facebook and Pinterest allow people to post items free of charge and the number of users
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on the sites is many compared to those keen to watch television (Faisal, Abu). The business is

also able to get feedback and complaints, particularly when the customers need improvement.

Measurable results

In other forms of marketing, for instance, the use of billboards and flyers it is impossible to

determine the number of people who got the message. In digital market, it is easier to conduct

surveys that allow the business to draw a conclusion about the products. Digital media also

facilitate a two-way communication an advantage that most of the other advertisement medium

do not have (Faisal, Abu). TV commercials, for instance, the time coverage is short, and the

receiver may misunderstand the message, and they may not be able to make an informed choice.

conclusion

Digital marketing is the trend for the modern business that wants to grow and increase the market

share globally. It reduces the marketing costs allowing the final product to be cheaper and these

will increase sells and generate more revenue in the long run.
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Work Cited

Faisal, Abu. "Marketing Strategies In Online/Digital Marketing." Account And Financial

Management Journal, 2016, Research And Analysis Journals,
doi:10.18535/afmj/v1i8.01.
Kozlov, A.V., and D.V. Tupikova. "The Efficiency Factors Of Mergers And Aquisitions: A
Study Of Russian Practices." St. Petersburg State Polytechnical University Journal.
Economics, vol 233, no. 6, 2016, pp. 112-122. Saint Petersburg State Polytechnical
University, doi:10.5862/je.233.12.