Chapter 8-2 Growth & Expansion

Objectives You will be able to explain how businesses can reinvest their profits to grow and expand You will be able recognize the reasons that cause firms to merge You will be able to identify two different types of mergers

Growth Through Mergers Reasons for merging: grow faster — desire to be a bigger business quickly efficiency —only need one CEO, CFO etc. Good for the company, bad for the worker (lay-offs) need for new product lines ex: phone companies bought cable tv companies to offer internet & phone as one package

Catch up w/ or eliminate rivals ex: --Royal Caribbean and Celebrity Cruise merged to double in size to catch up to Carnival

Types of Mergers 1. Horizontal --2 or more firms that produce the same kind of product --ex. Exxon and Mobil Ford and Volvo Disney and Miramax Bell Atlantic & GTE = Verizon

2. Vertical --firms involved in different steps of manufacturing join together --Ex: sheep farmer textile industry clothing store

Conglomerate A firm that has @ least 4 businesses EX: Pfizer —makes prescription meds (Lipitor and Viagra), chewing gum (Trident, Dentyne), razors (Schick), cough drops (Halls), breath mints (Clorets and Certs) and antacids (Rolaids)

Household Cleaners • Bounty • Febreze • Mr. Clean • Swiffer Procter & Gamble Batteries • Duracell Feminine Care • Always • Tampax Antiperspirants, Deodorants, & Colognes • Old Spice • Secret Baby & Child Care • Charmin • Children’s Pepto • Clearblue Easy • Dreft • Luvs • Pampers • Pampers Kandoo • Pampers UnderJams • Puffs Beauty – Makeup/Skincare • CoverGirl • Max Factor • Braun • Gillette Complete Skincare • Olay Health Care • Align • Braun • Clearblue Easy • Fibersure • Metamucil • Pepto-Bismol • Prilosec OTC • PUR • Vicks Dish Washing • Cascade • Dawn • Ivory • Joy Laundry & Fabric Care • Bounce • Cheer • Downy • Dreft • Era • Febreze • Gain • Ivory • Tide Oral Care • Braun • Crest • Crest Glide • Crest Whitestrips • Fixodent • Gleem • Scope • Oral-B Hair Care/ Color • Aussie • Clairol • Head & Shoulders • Herbal Essences • Infusium 23 • Pantene Body Wash & Soap • Camay • Ivory • Olay • Old Spice • Safeguard • Zest Shaving • Braun • Gillette Fusion • Gillette M3Power • Gillette SatinCare • Gillette Venus Snacks • Pringles

Baby Care Products for the ones you love. JOHNSON’S® JOHNSON’S® BEDTIME™ JOHNSON’S® HEAD-TO-TOE®FRAGRANCE FREE BABY LOTION BABY.com DESITIN® NATUSAN® BABYCENTER®.com PENATEN® PRIM’AGE® Wound Care & Tropicals Care for cuts, scrapes, rashes and itching. BAND-AID® Brand Adhesive Bandages BENGAY® SAVLON® NEOSPORIN® CORTAID® DAKTARIN® COMPEED® TUCKS® Hemorrhoidal Ointment Johnson & Johnson RED CROSS® Brand Oral Health Care Care for your whole mouth. LISTERINE® LISTERINE® WHITENING® REMBRANDT® Skin & Hair Care Care for your skin and hair. BEBE® CLEAN & CLEAR® ROC® VENDOME® NEUTROGENA® JOHNSON’S® skin ID™ ROGAINE® AVEENO® LUBRIDERM® PIZ BUIN® Over-the-Counter Medicines Relief for pain, colds, coughs, allergies and more. TYLENOL® SUDAFED® PEPCID® NICORETTE® MOTRIN® IMODIUM® DOLORMIN® BENADRYL® MYLANTA® ZYRTEC® and ZYRTEC-D®12-HOUR® Vision Care Products for vision care. VISINE® ACUVUE® Brand Contact Lenses Nutritionals Products for a healthier diet. SPLENDA® BENECOL® LACTAID®

Multinationals manufacturing in a # of countries Ex: GM, Ford, Nabisco, Mitsubishi, and Sony

= In India

Chapter Review Assignment You are going to help write review questions for Kahoot. You need to write 6 multiple choice questions with answers A, B, C and D 3 from each section: SP, P or C and Growth Yes, it counts as a grade.