1. Chapter 8-2 Growth & Expansion

2. 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

3. 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

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

5. 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

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

7. 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)

9. 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

10. 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®

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

12. =
In India

19. 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.