Consolidating and centralizing functions
This in turn gives the merged company more negotiating power to get better deals with suppliers.
A business consolidation leads to the elimination of duplicate assets, which equals financial savings.
ABC Training Company provides professional training and has two major training programs: Leadership and Team Building.
Should each program or the central office execute the content creation (selecting their own publishers, printers, and designers and having control over the process)?Table 1 outlines the four permutations of centralizing and decentralizing the two parts of the content development.What is the right choice for each function in your organization?This type of organizational consolidation increases the size of a company's market, which in turn can lead to higher sales and profits.An increase in market size also provides an opportunity to expand a company's business line, which can lead to increased sales and profits as well.