Inorganic (external ) expansion

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  • Created by: irena4567
  • Created on: 12-12-15 18:49
Merger
The two businesses reach an agreement to join together and operate as one business.Tends to be of mutual benefit to both business.
1 of 6
Takeover
One business buys another business .Tends to be more hostile as the buying business is the main one benefit .
2 of 6
backward vertical integration
when a firm higher up in the production process joins with a firm lower down in the production process.
3 of 6
forward vertical integration
when a firm lower down in the production process joins with a firm higher up in the production process
4 of 6
horizontal integration
when 2 competitors at the same stage in the production process join together
5 of 6
conglomerate integration (also known as diversification )
when a firm joins with another firm in completely unrelated business.
6 of 6

Other cards in this set

Card 2

Front

Takeover

Back

One business buys another business .Tends to be more hostile as the buying business is the main one benefit .

Card 3

Front

backward vertical integration

Back

Preview of the front of card 3

Card 4

Front

forward vertical integration

Back

Preview of the front of card 4

Card 5

Front

horizontal integration

Back

Preview of the front of card 5
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