Comparing The Merger Of Dupont Co. And Dow Chemical Companies

There are a lot similarities and differences when comparing the article and the topic. Based on the textbook, it is evident that the merger between DuPont Co and Dow Chemical Co can be classified as a horizontal merger due to the fact that their main goal is attain market power and become influential in the agricultural and chemical marketplace. One of the reasons these two companies decided to merge was because of their motive to fortify their rank in the market. DowDuPont can also be classified as a horizontal integration since both companies were competitors. The separation of the merged company into three consecutive publicly traded companies’ acts as a strategic benefit for them due to the decrease in tax payments focus on increasing revenue

The article is similar to the topic in terms of Human Resources as the concealed costs included; reduction in production yield from the employees, pressure and uneasiness, which could be critical for financial success. The effect this merger has on the employees such as the lack of innovation to work, confidence in both the manager and the company. However, the merger only mentioned plans about cutting costs but failed to discuss plans about the compensation methods for both managers and employees. The article also coincides with this topic because in the textbook a survey is being demonstrated in which there is a lot of speculation and rumours going around in the company as the article explains that many farmers are not excited about this merge due to the escalation in costs and the charges of chemicals. Even the external parties which include the antitrust companies/specialists and the government are interested in protecting the interest of the farmers while ensuring that the market remains competitive and open. The biggest cost will be the loss of jobs as in the article DuPont plans to fire about 10% of its employees as well replace some board members. For a merger to also run smoothly as the textbook indicates, there has to be the unification of both the