Vertical Mergers
Mergers and Joint VenturesSharod L. Edwards, Derrick Hubbard, Oriel Frederick, Michael Thompson, Charles Barker, and Valerie Carpenter
ECO/365October 27, 2014Daniel PuenteMergers and Joint VenturesWhile companies are faced with many challenges one of the most challenging are when companies merge. There are several different types of mergers which these companies must consider horizontal, vertical, and conglomeration. A horizontal merger occurs when two companies from the same industry consolidate their assets and eliminate competition allow them to reach potential higher gain within market. Vertical mergers occur when two or more companies operating at different levels are producing goods or services for a particular industry. The goal …show more content…
First off here is what a vertical merger means, it is when two companies in the same industry and channel decide to join forces and become one company (www.brighthub.com, 2014). Now here is an example in case you don’t understand let’s take Coke they make a liquid drink and they buy the bottles from another manufactory and they realize it would better that they create a vertical merger with the bottling company and brings that company in house now and they become one company. Coke has now created a vertical …show more content…
The United States government normally permits conglomerate mergers. “One example of a conglomerate merger was the merger between the Walt Disney Company and the American Broadcasting Company,” according to http://www.mbda.gov/node/1409. The Miller Brewing Company and Phillip Morris is another example of a conglomerate merger. Joint ventures sometimes involve a temporary merging of two competing firms that produce similar products and generate revenue in the same manner. However, according to http://www.hg.org/joint-ventures-law.html, “Although often proposed for a limited purpose, joint ventures can also have an indefinite duration.” Joint venture involves the sharing of rewards and risks. An example of a joint venture is General Motors Company and the Isuzu organization. Sony Ericsson, Dow Corning, and Owens Corning are other joint ventures famous
ECO/365October 27, 2014Daniel PuenteMergers and Joint VenturesWhile companies are faced with many challenges one of the most challenging are when companies merge. There are several different types of mergers which these companies must consider horizontal, vertical, and conglomeration. A horizontal merger occurs when two companies from the same industry consolidate their assets and eliminate competition allow them to reach potential higher gain within market. Vertical mergers occur when two or more companies operating at different levels are producing goods or services for a particular industry. The goal …show more content…
First off here is what a vertical merger means, it is when two companies in the same industry and channel decide to join forces and become one company (www.brighthub.com, 2014). Now here is an example in case you don’t understand let’s take Coke they make a liquid drink and they buy the bottles from another manufactory and they realize it would better that they create a vertical merger with the bottling company and brings that company in house now and they become one company. Coke has now created a vertical …show more content…
The United States government normally permits conglomerate mergers. “One example of a conglomerate merger was the merger between the Walt Disney Company and the American Broadcasting Company,” according to http://www.mbda.gov/node/1409. The Miller Brewing Company and Phillip Morris is another example of a conglomerate merger. Joint ventures sometimes involve a temporary merging of two competing firms that produce similar products and generate revenue in the same manner. However, according to http://www.hg.org/joint-ventures-law.html, “Although often proposed for a limited purpose, joint ventures can also have an indefinite duration.” Joint venture involves the sharing of rewards and risks. An example of a joint venture is General Motors Company and the Isuzu organization. Sony Ericsson, Dow Corning, and Owens Corning are other joint ventures famous