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The Basics | Lines of Business

Friday, April 11, 2008   (0 Comments)
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When corporations merge, executives routinely consolidate functions that are duplicative. These functions include human resources, back-office operations and information technology. In doing so, executives look to consolidate the business processes and IT systems that support the functions. The idea is a company doesn't need two HR systems, two payment systems, two e-mail systems and so on. After all, consolidation is a large part of what makes the merger financially viable -- creating economies of scale that present efficiencies that reduce unit costs.

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