Why Merge? Label page 24.

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Presentation transcript:

Why Merge? Label page 24

Why merge? Businesses decide to merge for several reasons. They include: 1. to go faster 2. to become more efficient 3. to acquire/deliver a better product 4. eliminate rival 5. change image

Two types… Horizontal Merger—combo of 2 or more firms producing the same kind of product EX. + + Vertical Merger—combo of firms that are involved in different steps of the production process EX. +

Conglomerate When a business grows so large it maybe called a conglomerate. A conglomerate is a combo of 4 or more businesses, each making unrelated products & none responsible for majority of its sales.

Multinational EX: Honda, Nike, Samsung, Coca-cola A multinational is a corporation that has manufacturing & service operations in different countries. MULTI= many NATIONal= nations

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