Business Expansion achieved by means of merging with or taking over another business, from either the same or a different industry
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Merger
An agreement by shareholders and managers of two businesses to bring both firms together under a common board of directors with shareholders in both businesses owning shares in the newly merged business
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Takeover
When a company buys more than 50% of the shares of another company and becomes the controlling owner of it - often referred to as 'acquisition'.
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Synergy
Literally means that 'the whole greater than the sum of part', so in integration it is often assumed that the new, larger business will be more successful than the two, formerly separate businesses were.
Integration with firms in the same industry and at same stage of production
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Vertical forward integration
Integration with a business in the same industry but at a customer of the existing business
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Vertical backward integration
Integration with a business in the same industry but a supplier of the existing business
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Conglomerate integration
Integration with a business in different industry
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Two forms of external growth that do not involve complete integration or changes in ownership
Joint ventures and strategic alliances
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Joint Ventures
Two or more businesses agree to work closely together on a particular project and create a separate business division to do so.
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Strategic alliance
Agreements between firms in which each agree to commit resources to achieve an agreed set of objectives
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Other cards in this set
Card 2
Front
An agreement by shareholders and managers of two businesses to bring both firms together under a common board of directors with shareholders in both businesses owning shares in the newly merged business
Back
Merger
Card 3
Front
When a company buys more than 50% of the shares of another company and becomes the controlling owner of it - often referred to as 'acquisition'.
Back
Card 4
Front
Literally means that 'the whole greater than the sum of part', so in integration it is often assumed that the new, larger business will be more successful than the two, formerly separate businesses were.
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