Merger
An agreement to unite two or more existing companies into a new company
what is merger
AT&T merged with this company?
Bell South
Two or more firms that are involved in different stages of producing the same good join together
What is a Vertical Merger
When two or more firms with the same good or service competing in the same market join together
Horizontal Merger
Three or more unrelated companies merge.
conglomerate
Who controls a Merger?
head of the company that buys the other
American Online Mergered with this Company?
Time Warner
Vertical mergers goal?
increase efficiency and production
Horizontal mergers want to
Increase revenue
two types of conglomerate mergers
pure conglomerate merger and mixed conglomerate mergers
Skills needed to run a merger
Very good management skills - mergers can become to big to manage
Good office culture
Good organizational structure
Exxon Merged with this company?
Mobil
Vertical mergers help reduce?
costs of supplies needed in the production process
Increase revenue by?
merging and being able to offer a wider variety of products.
These mergers can diversify?
businesses
Potential Longevity
very successful in the long run
Vodafone merged with?
Mannesmann
Example of a vertical merger that sells clothes
Target
What does a Horizontal merger reduce?
Competition
diversity in products made and sold
Who recieves profit?
Both Companies that merge
Pfizer merged with?
Warner-Lambert
Online Auction site
Ebay
What is an example?
Delta and NorthWest Airline
What is an example?