mergers consolothertypesbusinesses.8.3.4
DESCRIPTION
This is the PPT presentation for both Chapter 8, Sections 3 and 4. There are several videos in this presentation which may or may not accompany it.TRANSCRIPT
BUSINESS CONSOLIDATION
Chapter 8, Section 3 (Part 2)
BUSINESS CONSOLIDATION
Terms to know: A horizontal merger describes the
combining of companies that offer the same or similar products or services.
A vertical merger describes the combining of companies involved in different steps of production or marketing of a product or service.
BUSINESS CONSOLIDATION
Terms to know A conglomerate results from the merger of
companies that produce unrelated goods or services.
A multinational corporation is a large corporation with branches in several countries.
Conglomerate: Proctor & Gamble
FRANCHISES, CO-OPS AND NON-PROFIT ORGANIZATIONS
Chapter 8, Section 4
FRANCHISES
Made up of semi-independent businesses that offer the same products or services.
Each franchisee pays a fee to the parent company in return for the right to sell the company’s products or services in a particular area.
Most common in the fast food industry.
FRANCHISES
AdvantagesTraining in running a business Proven, recognizable products
National/regional advertising by franchiser
FRANCHISES
Disadvantages Risk own money Sharing of profit with franchiser
Limited control – ex. only offer franchiser’s products
Top Ten Franchises in 2013
1) Hampton Hotels
2) Subway
3) Jiffy Lube Int'l. Inc.
4) 7-Eleven Inc.
5) Supercuts
6) Anytime Fitness
7) Servpro
8) Denny's Inc.
9) McDonald's
10) Pizza Hut Inc.
COOPERATIVES
Operated for the shared benefit of the owners, who may also be the customers or employees.
3 Types:
Consumer co-ops: requires membership payments, but saves members money by purchasing goods in large volumes at a discount prices.
COOPERATIVES
Service co-ops: offer a service, ex. credit unions
Producer co-ops: Producers or workers join together to more efficiently process or market their goods; most common among farmers.
NONPROFIT ORGANIZATIONS
Institutions that act like businesses, but their purpose is to benefit society, not to make a profit.
Many are not required to pay taxes because they do not generate profits and serve society.
Raise most of their money from donations, grants, or membership fees.