Mergers & Acquisitions Should a Firm Attempt Term Paper

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Mergers & Acquisitions

Should a firm attempt to have fewer or more suppliers?

It depends on the situation the client is in terms of availability of materials and such as well as the number of vendors out there. A firm should balance between not putting all the proverbial eggs in one basket by using only one or two vendors and using too many and thus making administration and logistics more complicated (eSmallOffice, 2013)(Entrepreneur, 2013).

The "sweet spot" is probably 3 or 4 vendors although it can be more if more are required to reliably get all the materials but less may be needed can provide what is needed on time and in a reliable fashion and at a good cost. In short, there shouldn't be more vendors than needed while at the same time, there shouldn't be too few to protect against problems with vendors (eSmallOffice, 2013)(Entrepreneur, 2013).

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What are the advantages and disadvantages of each approach?

As noted above, using a small number makes for easier administration since the number of accounts and contacts necessary is much better. However, if that small number of vendors are inconsistent and/or incomplete in their service, the problems can outweigh the benefit of the simplicity. Keeping more vendors is better because it diversifies the sources or goods and service and makes it easier to replace shortages and address problems found with other vendors. However, too many vendors causes complexity, requires….....

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