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Economies of scale:- arise when increase in the volume of production leads to a reduction in the cost of production per unit. Economies of scale may also arise from other indivisibilities such as production facilities, management functions and management resources and systems.
Operating economies:- arise because, a combination of two or more firms may result in cost reduction due to operating economies. For example, a combined firm may eliminate duplicate channels of distribution, or create a centralized training center, or introduce an integrated planning and control system.
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Was the merger between Kmart and Sears vertical or horizontal?
Horizontal.
What are the three types of business mergers?
Three types of mergers are: * Horizontal Merger * Vertical Merger * Conglormarate Merger
How do conglomerates and vertical mergers differ frim horizontal mergers?
Conglomerate is a merger between firms that are involved in totally unrelated business activities. A vertical merger is a merger between firms that exist in the same supply chain, while a horizontal merger is a merger between firms in the same industry.
How do horizontal merger vertical merger and conglomerates differ?
A horizontal merger combines two firms in the same market. A vertical merger combines two firms involved in different stages. A conglomerate combines two firms that produce unrelated goods or services. Pretty much they all combine two firms or more but in different ways.
Real world examples of Sole Proprietorship Partnership Corporation Vertical Merger and Horizontal merger?
aditya birla group tata industries etc.
What is the difference between horizontal merger and a vertical merger?
Horizontal Merger A horizontal merger is a merger between two competitors. Suppose, for example, that tomorrow Nokia were to buy Sony ericsson. This would be a horizontal merger. Vertical Merger A vertical merger occurs when a supplier buys a reseller, or vice versa. The key point is that the two companies have a buyer-seller relationship. Suppose that a food retailer purchased a company that manufactures food. This would be a vertical merger. Or, suppose that a pharmaceutical company acquired a drugstore chain. Vertical mergers are more likely to be approved by regulatory authorities. Consumers can benefit from the increased efficiencies that result from supply chain integration--- often in the form of lower prices and/or better service. Conglomerate Merger A conglomerate merger is a union of two companies that a.) are not competitors, and b.) not part of the same supply chain. If Oracle were to purchase a fast food chain, this would be a conglomerate merger. Software has no relationship to fast food; fast food has no connection to software (other than providing sustenance for programmers who work long hours.)
What are the reasons for a merger?
operation and or financial synergy increase in or protection of market share unused tax shields meeting regulatory requirments backdoor listing
Advantages of merger with some examples?
example of advantegs of marger
Several office companies decide to combine into one large company. what is this called?
horizontal merger
When two giant automakers Ford and Jaguar merged to form a single corporation which type of merger was it?
This was considered a horizontal merger when ford and jaguar merged to form a single corporation.
What are Advantages and disadvantages of conglomerate merger?
disadvantages- unlikely economic benefits will be generated for the target or the bidder advantages- diversification
Several office supply companies decide to combine into one large company. What is this called?
horizontal merger
