Final answer:
Magazines that merge into larger chains can do all of the following: extend their reach, lower costs, and increase revenues. Mergers enable magazines to optimize operations, expand their market influence, and improve efficiency, like corporations forming conglomerates for mutual benefits. The correct option is D.
Step-by-step explanation:
Magazines that merge into larger chains are able to extend their reach and attract new customers, lower their development, production, and sales and marketing costs, and generate more revenues. Essentially, the option 'D. All of the above' is correct. This is because, through merging, magazines can take advantage of synergy in various aspects of their business. For example, merging enables them to pool their resources to expand or reduce production, optimizing for market demand, and set prices more strategically due to enhanced market presence.
Additionally, the merged entity may open new factories or sales facilities or close unprofitable ones, which can lead to a more efficient operation overall. They are also better positioned to hire workers or lay them off based on the needs of the larger, combined organization. Furthermore, it offers an opportunity to start selling new products or stop selling existing ones that are not in line with the company's strategic goals after the merger.
In terms of corporate strategy, this can be likened to the benefits that corporations seek when forming associations or conglomerates. These include finding strength in numbers, addressing common issues that affect their industry, and influencing governmental policies that favor their business interests. Similarly, mergers can help companies to grow, become more efficient, acquire new product lines, outperform rivals, and sometimes, even rebrand themselves entirely.