Maicro Essay Example | Topics and Well Written Essays - 1000 words

Maicro - Essay Example The interview was taken with the aid of an interview guide and it has been analyzed qualitatively. The decision taken by the person, who would be referred to as economist was a decision to merge his small printing business with a cyber cafe. There were two major factors that influenced the decision for a merger. In the first place, the economist had the realization that most people who use the internet cafe also patronize printing and other secretarial services such as scanning, photocopying, lamination and binding; all of which he offered in his firm. He therefore wanted to extend these services to the users of the internet cafe. To him, joining the internet cafe was a way to increase the number of services he offered. The other reason that influenced the decision was the fact that the economist realized that the size of his business was small and needed to expand. However, he wanted this to happen within a very short time. According to Joel (2011) â€Å"The main purpose of many me rgers is to produce a synergistic effect in a much shorter time than would be possible through a gradual growth, if it would otherwise be possible at all.† This is to say that the decision for merger ensures an outright growth of a company from a single state to a double state. This growth is sudden rather than gradual. What is more, merger was less cost involving compared to decision to start a new internet cafe from the scratch. Whiles deciding to merge his company, there were three prime expectations of the economist. In the first place, he had an expectation of reviving his company, which was declining in growth. According to him, this was partly because there had been the establishment of several printing businesses in the area where he operated from. The opening of the new printing firms caused serious competition. He explained that there became several options for customers and that though he continued to serve his customers well, some of the customers wanted to make go od use of the new businesses with reasons such as avoiding delays at his end because he had to serve many people when there were other firms that were empty. Again, he had a realization that most of the people who entered his firm came with an expectation to have internet service so that they could print from the internet. Such people who did not find the internet service in place went to other places where they could have both internet and printing services. It was therefore his expectation that with the merger, his firm would grow because all the people who came to his firm and left because there was no internet service would now do business with him. As a follow up to his first expectation, he felt that expanding his business would increase the number of customers he had. This was because he would have his regular customers and the customers of the internet cafe all on his side. Again, he would have an increase in the number of customers he served because the firm would now be in position to offer wide range of services. Naturally, by serving many customers at a time, he was sure his profit would increase. Lastly, the decision was taken in order to have a supporting partner to aid with the managerial and financial affairs of the company. According to the economist, his firm was a sole proprietorship company and that having access