Th3.1: Impacts of Demergers Flashcards
Positive impact workers
separate firms may need their own managers and leaders so people could get a promotion
Negative impact workers
the goal of making a firm more efficient may result in job losses
Positive impact businesses
concentrating on a smaller core business may enable it to be more efficient and concentration may lead to more innovation and surviving higher competition
Negative impact businesses
the smaller size of the business could lead to a loss of economies of scale and reduce efficiency
Positive impact consumers
they may gain from innovation and efficiency, leading to a better products and cheaper prices
Negative impact consumers
demerged firms may be less efficient through loss of economies of scale or raise prices/reduce quality or range of goods as they become motivated by profits