Business Organizations Ch. 8. Corporate Mergers Horizontal mergers combine two or more firms competing in the same market with the same good or service.

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Presentation transcript:

Business Organizations Ch. 8

Corporate Mergers Horizontal mergers combine two or more firms competing in the same market with the same good or service. Examples -

Vertical mergers combine two or more firms involved in different stages of producing the same good or service Examples -

A conglomerate is a business combination merging more than three businesses that make unrelated products. Examples -

MNCs Multinational corporations (MNCs) are large corporations headquartered in one country that have subsidiaries throughout the world. Advantages – Disadvantages-

Business Franchises Advantages of Business Franchises Management training and support Standardized quality National advertising programs Financial assistance Centralized buying power

Disadvantages of Business Franchises High franchising fees and royalties Strict operating standards Purchasing restrictions Limited product line

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