Proctor and Gamble

Essay by mysterygirl_dangerUniversity, Bachelor'sB+, May 2008

download word file, 8 pages 0.0

The function of a merger starts with the building of an organization that is committed to the values of achieving every aspect of an operation that deals with supply and demand of goods. The organization has a mission and a goal to accomplish while trying to determine the impact it has in the world of business. The focus must be on the planning phase of management and the associated economy. Management and employees alone can make a change for the better. The determination to produce numbers that are record breaking each quarter is the starting point to taking the organization into the forefront. This serves as testimony for the Proctor and Gamble merger which allows the competition to know what it means to build a relationship on the grounds of trust and integrity.

Pros and Cons of a MergerDuring the merger process Procter and Gamble and Wella needed to examine the various pros and cons that come along with mergers or acquisitions.

Some of the pros that exist when merging with another company are:•Obtaining quality staff or additional skills, knowledge of your industry or other business intelligence.

•Accessing funds or valuable assets for new development. In many cases it is much cheaper to purchase an existing production or distribution facility than to build a new one.

•Diversification of products, services and long-term prospects of your business.

•Reducing costs and overhead through shared marketing budgets, increased purchasing power and lower costs.

•Reducing competition by buying new intellectual property, services or products that may be cheaper than developing them yourself.

•The value of your business will increase.

•It will provide for a larger customer base.

(Business Link, 2007)There are also careful cons to examine before your business decides to be part of a merger or acquisition. Some of the cons...