MHR 849 Chapter Notes - Chapter 12: Takeover, Long-Distance Running, Horizontal Integration
25 Mar 2015
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Chapter 12: merger and acquisition: merger two organization consolidate into a single organization, there is three categories i) Merging of two competitors who combine to increase market power typical are subject to review by regulators who fear monopoly power in the marketplace example: coles books + smithbooks = chapters indigo ii) Buyer and seller merge together to achieve the synergies of controlling all factor affecting a company"s success from production of raw goods to manufacturing to distribution and retail sales. When one company merge with another, but two companies have no competitive or buyer-seller relationship. Mhr 849 hr planning: hostile takeover acquisition of company against the wishes of its management. Urge to merge: 3 reason why organization merge i) Strengthening of competitive position is another strategic rationale can achieved from. Company may want acquire competencies that make their core competency less imitable.
