b) Impacts

b) impact of demergers on businesses, workers, and consumers

on firms

• restructuring management

  • higher costs

• management distraction

  • less focus on market opportunities

• smaller firm

  • less market power

on workers

• streamlined focus

  • less task complications

• smaller workforce

  • career progression

• eliminating underperformance

  • layoffs

• higher production costs

  • lower salaries

on consumers

• greater efficiency

  • lower prices

• streamlined focus

  • higher quality goods/services

• restructuring management

  • reduced product availability/customer support

• smaller firm

  • less product variety