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Landon Industries Is Considering a Merger with Lake Industries

Question 22

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Landon Industries is considering a merger with Lake Industries.Landon offers its employees competitive salaries and generous benefit packages,but salaries at Lake are below the industry average,and Lake's benefit packages is much lower than Landon's.Not surprisingly,the employees at Landon are concerned that a merger with Lake would cause their benefits to decline.The CEO of Landon thinks that the best way to overcome the employees' resistance to the merger is through education and communication,but the CEO of Lake wants to force all employees in the newly merged companies to accept the changes.Which of the following facts would MOST weaken the Landon CEO's argument?


A) Lake's strong financial situation means outstanding long-term stability for the merged companies.
B) Both companies use several different tools to communicate their respective corporate cultures.
C) Lake's offer includes paying a higher price to Landon shareholders if the merged companies adopt Lake's benefits policy.
D) Landon divisions are departmentalized on the basis of customers served.
E) Lake has promised that it will adopt Landon's policies for attracting and retaining talent.

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