HBM- Ways to achieve growth

A merger is...

• A method of Internal growth

• A friendly deal where two businesses join together

• A forced and sometimes hostile deal where one firm buys a share of the other business

A take-over is...

• A method of Internal growth

• A friendly deal where two businesses join together

• A forced and sometimes hostile deal where one firm buys a share of the other business

A merger is when...

• 2 businesses who trade in the same market join together

• 2 businesses of approximately the same size join together

• 2 businesses providing the same service join together

A 'franchiser' is...

• A person who invests large amounts of capital into growing a business

• A person who sells a business to someone else

• A person who pays a percentage of profit each year to own a business under someone else's name

• A person who starts a business and provides a good/service supplied by another business

A 'multinational' is...

• An organisation that is funded by Government grants

• An organisation that operates in more than one country

• An organisation that has more than one store in one country

• An organisation that expands within the same country

2 advantages of being a multinational organisation are...

• Legal restrictions can be avoided in other countries compared to the home country

• The culture might vary from one country to another and the organisation will need to consider this

• Language barriers may make trading more difficult and expensive

• Expanding abroad means the organisation will become bigger, increasing sales

What type of integration is this an example of - TSB agreeing to join forces with RBS

• Takeover

• Merger

• Backward Vertical Integration

• Forward Vertical Integration

What is another name for a takeover?

• Acquisition

• Divestment

• Merger

• Backward vertical integration

What word describes a takeover where the smaller company is not happy with what is happening?

• Hostile

• Aggressive

• Strategic

• Market drive

What type of growth was this an example of - Google bought YouTube

• Takeover

• Merger

• Diversification

• Backward vertical integration