What would be the gains and losses of A Form merging with B Sixth Form? How do firms grow?

Authors Avatar

What would be the gains and losses of A Form merging with B Sixth Form?

How do firms grow?

Many firms in the modern era wish to expand their business/company so that it may produce as much profit as possible. There are two ways in which this can be achieved:

  • Organic Growth (Internal)
  • Takeover/Merger (External)

Organic growth is when the firm attempts to ‘break into there markets’ and expand there possible profitability

Takeover or a merger is the other way in which to expand the firm.

Many people get confused with mergers and takeovers. A takeover is when one of the businesses obtains at least 51% of the shares.  A merger is when two businesses join together to form one larger business. This is done through a voluntary act of their own.

There are four different types of mergers:

  • Vertical – the merger is of the two businesses that are in separate ‘chains of production’.
  • Lateral – the merger of two firms that produce different products but target a similar market. For Example, Cadbury Schweppes.
  • Horizontal – the merger of two businesses in the same position of the ‘chain of production’. For Example, the recent merger of Halifax and Bank of Scotland.
  • Conglomerate – the merger of two firms who sell their products to different target markets.
Join now!

Why merge the two sixth forms?

Before going ahead with the proposal of the two North Leeds schools merging, I must do some research to see whether the proposal is a good idea.

To attain information on gains and losses of a merger, I have done both primary and secondary research.

  • Primary Research     - Interview with Head of AGS (Dr Haynes)
  • Secondary Research - School websites

                                  - Prospectus

                                 - Nuffield BP Business & Economics for GCSE

I will be studying:

  • Mergers
  • ...

This is a preview of the whole essay