Corporate MergersCorporate Mergers

Mergers

The joining together of two or more companies to form a single company.

Horizontal Merger

two companies that both make the same product and join together.

Ex: Sprint and Nextel

Reasons for horizontal mergers:1. Increase customer base2. Shared technology3. Cut costs

Antitrust laws

Sometimes the government will stop horizontal mergers because it might create a monopoly.

Sherman Antitrust Act (1890) the first law that banned mergers and monopolies that limit trade across states. It gave the government the power to stop cartels and monopolies.

Vertical Merger

a joining of two or more firms that are involved in different stage of producing the same good or service .

Ex: A furniture manufacturer buys a lumber mill

Vertical mergers cut costs.

Conglomerate

a combination merging two or more totally unrelated businesses

Conglomerates are made to increase profits.

Name the Conglomerate

This company produces:

1. Grand pianos

2. Jet skis

3. Stereo equipment

4. Motorcycles

YAMAHAYAMAHA

Name the Conglomerate

This company produces:

1. Swimming pool plaster

2. Air filters

3. Staplers

4. Post It notes

3M3M

Name the Conglomerate

This company produces:

1. Men’s razors

2. Laundry detergent

3. Batteries

4. Diapers

Proctor & GambleProctor & Gamble

Vocabulary words

Zoning Laws: law in a city that designates separate areas for residency and for business

Multinational corporations (MNCs) : a large corporation that produces and sells its goods and services throughout the world.

Cooperative: business organization owned and operated by a group of individuals for their shared benefit. ex: an apartment complex., health care service, agricultural co-op

What do you look for in a job?

1. working conditions

2. wage

3. intrinsic rewards

4. location

5. skills

6. market trends

Why do Alaskan crab fishermen do what they do?

What a person wants in a job:

wage

intrinsic rewards

working conditions

location

skills

market trends

What a crab fisherman wants in a job:

1.

2.

3.

4.

5.

6.