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.
2.
3.
4.
5.
6.
working conditions
wage
intrinsic rewards
location
skills
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.