State any four benefits accruing as a result of SmithKline Beecham merging with Glaxowellcome

  • Higher production leading to low cost of goods per unit thus higher profits
  • Large market due to lower prices and no competition
  • Reduced competition increases sales
  • Advantages of specialisation
  • Better management as a result of combined pool of specialist / specialised labour
  • Cheap purchases of raw materials as a result of bulk buying at a discount
  • Will be able to attract external finance easily for expansion
  • Control of prices due to information of cartel

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