Description
Need to Merge!
Step 1: Review the defining characteristics of the three different types of mer gers: horizontal, vertical, and conglomerate.
Step 2: Examine the list of five possible mergers below. Indicate whether each is horizontal, vertical, or conglomerate. Be prepared to defend your answers.
Nike Corporation and Reebok:
and Kodak:
Sealy Mattress Company and Viking Furniture:
State Farm and Geico:
Dow Chemical and Revlon:
Step 3: Develop your own example for each type of merger:
Conglomerate
Horizontal Vertical
Explanation & Answer
Attached. Please let me know if you have any questions or need revisions.
Running Head: BUSINESS
1
Business
Institutional Affiliation
Name
Date
BUSINESS
2
Step 1: Review the defining characteristics of the three different types of mergers: horizontal, vertical,
and conglomerate.
Horizontal- Horizontal merger refers to a type of merger between companies that sell products that are
analogous and are in the same line of markets.
Vertical- Vertical merger is a type of merger between companies that are at diverse production stages
but in the same industry. In other words, the merging companies run along the same supply chain.
Conglomerate- A conglomerate merger is a type of merger between companies in business activities
that are unrelated to each other. In other words, the merging companies are in different industries
(Brueller, Carmeli, & Drori, 2014).
Step 2: Examine the list of five possible mergers below. Indicate whether each is horizontal, vertical,
or conglomerate. Be prepared to defend your answers.
Nike Corporation and Reebok:- this is a horizontal merger example. The reason is that both Nike, as well
as Reebok, sell products that are similar such as athletic wear, sports shoes, and sport garnishes. The
two companies operate in the same indus...