1. A merger maybe defined as a combination of two or more companies to form one entity. This decision is usually mutual in both firms. In a merger, assets, employees and programs are combined to form either a new organization representing the best of the two companies or one of the companies posing as the surviving entity.
2. Glencore and Xstrata will have a great combining power. This is because Glencore operates in 40 countries from Australia to Argentina and Xstrata on the other hand is active in more than 20 countries globally. So this merger will result to a total number of 130000 employees with increased revenue of $200bn which would eventually create the world’s biggest exporter of coal for power plants and the largest producer of zinc.
3. The new changes would affect the structure, behavior and processes of the organization by the formation of a new executive body because there should be one organizational structure comprising of the different portfolios. Also, the employees will be eventually increased as the two companies merge together. Moreover, the culture of the newly formed organization will change as the two companies both had separate organizational culture. Lastly, they would also have the combining power of involving in commodities trading and mining and this will obviously the profitability and production level of the organization.
4. With an estimated number of 130000 employees, the new management can fit in their employees in order to give that competitive advantage by creating a large scale of employment by selecting the most qualified and experienced employees of the two companies. There will be a vast number of trained personnel in the newly formed merger and thus the management would be tasked to take up the best when
