1. Company LOGO Chapter 3, section 2 Business Growth and Expansion Pages 64-67

2. Mergers Activity A.Every student should have an INDEX CARD. Each index card names a company. B.Find other students with whom to merge your company. C.As a GROUP, answer the questions below and turn them in for credit (include name): 1.What companies were part of the merger? 2.Why would your companies choose to merge? 3.Explain whether your merger is a horizontal or vertical merger.

3. HOW AND WHY BUSINESSES MERGE Reasons for Merging Efficiency Eliminate Competition IDENTITY Gain/Lose

4. BUSINESS COMBINATIONS 1. Horizontal Merger 2. Vertical Merger 3. Conglomerate 4. Multinational

5. HORIZONTAL MERGER Example 1 Nike and Adidas Example 1 Nike and Adidas Example 2 Sprint and Nextel Example 2 Sprint and Nextel 2 or more companies in the same business come together

6. VERTICAL MERGER Example 1 Ford Truck Co. buys a tire company and an engine parts supplier Example 1 Ford Truck Co. buys a tire company and an engine parts supplier Example 2 Coca-Cola buys A sugar farm And a trucking Company to deliver its soda Example 2 Coca-Cola buys A sugar farm And a trucking Company to deliver its soda Firms involved in different steps of the manufacturing process come together

7. CONGLOMERATE Example 1 Honda Cars, motors, boats, power products Example 1 Honda Cars, motors, boats, power products Example 2 Yamaha Musical instruments, motor cycles, home theater, vehicles Example 2 Yamaha Musical instruments, motor cycles, home theater, vehicles FIRM THAT HAS AT LEAST 4 DIFFERENT BUSINESSES MAKING UNRELATED PRODUCTS, NONE OF WHICH IS RESPONSIBLE FOR A MAJORITY OF ITS PROFITS

8. MULTINATIONAL Definition: corporation with operations in more than one country, moving goods and services around the world Definition: corporation with operations in more than one country, moving goods and services around the world Strengths: Spread technology; generating new jobs; provide tax money to host country Strengths: Spread technology; generating new jobs; provide tax money to host country Weaknesses: unfair influence on politics of the host country; Exploitation of low wage workers; exporting scarce natural resources (like oil); interfering with development of local businesses Weaknesses: unfair influence on politics of the host country; Exploitation of low wage workers; exporting scarce natural resources (like oil); interfering with development of local businesses

9. MERGERS 1.Pizza Hut, Domino’s & Vocelli Pizza (H) 2.Pepsi & Coke (H) 3.Herr’s Chips & Lay’s Chip’s & Snyder’s Pretzels (H) 4.Cricket & Verizon & AT&T (H) 5.HGTV & Food Network & Travel Channel (H) 6.Traveler Mag & Bargain Vacations Mag (H) 7.ExxonMobil & Shell Oil & Imperial Oil (H) 8.General Motors & Goodyear & Guardian Glass (V) 9.Bob’s Farm & Judy’s Grocery & Boo’s Restaurant 10.Crombie’s Coffee Beans & Moo Moo Dairy Farm & Sweet Cookies Bakery & Coconuts Coffee and Ice Cream Parlor V)