Corporate 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 base 2.Shared technology 3.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

YAMAHA

Name the Conglomerate This company produces: 1.Swimming pool plaster 2.Air filters 3.Staplers 4.Post It notes

3M

Name the Conglomerate This company produces: 1.Men’s razors 2.Laundry detergent 3.Batteries 4.Diapers

Proctor & 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: