There have been many changes at Blacks recently in the last few months. Blacks are a fairly new business but have already become on of the UK's leading suppliers of outdoor gear. Since opening they have

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Impact of a major change at Blacks

As I also stated in my introduction there have been many changes at Blacks recently in the last few months. Blacks are a fairly new business but have already become on of the UK’s leading suppliers of outdoor gear. Since opening they have generated high revenue and have been highly profitable every year. Every year Blacks beats the previous year in sales which shows that their market share is also increasing.

As Blacks looked at their financial status at the beginning of the year and looked at their objectives there was suddenly an opportunity in the market.  Competitor called Outdoors, who supply similar products to Blacks for camping was in financial crisis. The only way for Blacks to increase their market share is to close in on competitors.

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Blacks saw their opportunity and starting buying Outdoors’ shares.  Before buying shares though Blacks approached Outdoors and asked if they would be willing to comply with a friendly take over, but they rejected hoping that there financial crisis would be resolved. It soon became obvious that they were in too much debt so Blacks seized their opportunity and bought them out.

A hostile takeover was imposed and there was nothing the firm could do. They tried to resist the takeover bid but could not manage the finances. The board of directors did their best to ensure shareholders ...

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