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Landon Industries Is Considering a Merger with Lake Industries

Question 5

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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.If the following facts were known,which one would strengthen the Lake CEO's argument?


A) Mergers in this industry are more common than mergers in most other industries.
B) If the two organizations have similar cultures,mergers are easier to do.
C) At Lake,the accounting,operations,and human resource departments are able to serve a much larger organization.
D) Using coercion and threats to overcome resistance to change should be used only after other options have been tried.
E) Lake gives its employees the opportunity to serve for a year or more in its overseas offices.

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