3.1.3 Flashcards
1
Q
What are 3 reasons for demergers?
A
Reducing diseconomies of scale
Cultural differences
Remove loss making departments
2
Q
Impact of demergers on Workers?
A
Some may lose their jobs, however smaller workforce provides promotion opportunities.
3
Q
Impact of demergers on Consumers?
A
If successful they will have better quality products and customer service.
4
Q
Impact of demergers on firms?
A
More profit if remove unsuccessful divisions
