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Domino Grace Is a Financial Services Firm

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Domino Grace is a financial services firm. Currently, it offers competitive salaries and very generous benefit packages. The cost of those packages is very high, but the company believes that these benefits have helped it attract and keep top talent. Domino Grace is completing a merger with Kryptos, Inc. Salaries at Kryptos are slightly below industry averages, and the benefit packages it offers are considerably worse than those offered by Domino Grace. Domino Grace believes that the merger would be in the best interest of the company, but employees at Domino Grace are resisting this change in part because they are worried that they will lose their outstanding benefits after a merger is complete. The CEO of Domino Grace believes that the best way to overcome the employees' resistance to change is through education and communication. The Kryptos CEO believes that it will be necessary to force the employees to accept the changes.
Which of the following, if true, would undermine the Kryptos CEO's argument?
A few years ago, Kryptos merged with another company.
Concern over a possible reduction of benefits is only one of many reasons why Domino Grace employees might object to the merger.
Attempting to overcome change through hiding the truth about the effects of the change can undermine management's credibility.
Customers have strong connections to their Domino Grace brokers but little loyalty to Domino Grace as a company.
Employees at Domino Grace who have counterparts performing similar work at Kryptos tend to be paid more than their Kryptos counterparts.

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Customers have strong connecti...

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