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
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BUSINESS CONSOLIDATION
Chapter 8, Section 3 (Part 2)
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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.
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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.
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Conglomerate: Proctor & Gamble
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FRANCHISES, CO-OPS AND NON-PROFIT ORGANIZATIONS
Chapter 8, Section 4
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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.
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FRANCHISES
AdvantagesTraining in running a business Proven, recognizable products
National/regional advertising by franchiser
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FRANCHISES
Disadvantages Risk own money Sharing of profit with franchiser
Limited control – ex. only offer franchiser’s products
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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.
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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.
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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.
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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.