1. What are the likely advantages and disadvantages that firms in these kinds of mergers can expect?
In recent years, mergers have become very common as they offer distinct advantages to the firms involved. Economies of scale are the major advantage realized from mergers. Another advantage missing from the comment is that after mergers, companies gain access to a wide range of resources such as capital, market, patents, trademarks and copyrights. Staff layoffs is really a disadvantage to the staff and not to the companies because companies reduce costs when they layoff excess staff. Some disadvantages of mergers to the company include added compliance laws due to entering a new jurisdiction and the cost of funding the merger or acquisition.
2. What are the advantages and disadvantages to for individual at firms working at firms that merge with international partners?
Loss of job security and layoffs are the major disadvantages of merges to the individual staff of the companies involved. The workers that remain after the merger and layoffs have better career growth opportunities, and improved working conditions which is advantageous to them. Exposure to new ways of doing business is an advantage, but this might require international travel during which the employee is likely to get culture shock in the new market.
3. What basic HR issues, besides those mentioned in the case, must be addressed as a result of these mergers?
HR issues during mergers usually result from the differences in work culture among the companies involved. The issue of hiring, training and firing the staff is critical as the involved companies usually have different procedures for addressing these issues. Partiality is also an important HR issue whereby the senior managers favor staff from their “previous” company during layoffs after a merger occurs.
