For example, Company A, specializing in manufacturing radios, merges with Company B, which specializes in manufacturing watches, to form Company C.Company C now has access to a large customer base to which it can market its products to (e.g., Company A's product to Company B's customers, and vice versa). This is especially true in the case of a conglomerate merger when there are likely to be more significant differences between the firms underlying principles and operational methods because they operate in different industries. There are many opponents to conglomerate mergers who believe that they bring less efficiency to the marketplace. It aids in lowering production costs per unit and achieving economies of scale. At the present time, conglomerate mergers are quite rare. Thus, the new company can gain a monopoly and increase the prices of its products or services. Mergers may result in better planning and utilization of financial resources. List of Excel Shortcuts An agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time is called a ______________. It helps reduce the production cost per unit and helps achieve economies of scale. [CDATA[ A merger results in reduced competition and a larger market share. There are many reasons for conglomerate mergers, such as increased market share, synergy, and cross-selling opportunities. A merger between different business organizations has several advantages and disadvantages. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); //