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goji.go goji.go
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11 years ago
A corporation that owns a chain of pastry shops on the west coast has seen a decrease in revenue in recent months due to an increase in the price of flour. The company is considering merging with another company in order to combine resources and save on costs. Which type of merger would be most beneficial for the corporation and why?
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Diesel

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bbb
wrote...
#1
11 years ago
The corporation would benefit most from a vertical merger. This is when two companies, one a buyer and the other a supplier, merge to form a single company. This type of merger cuts down on costs for the buyer company since it now gets its supplies from within its own company and not from an outside supplier. As a result, production costs will be lowered. In this instance, the pastry company could look to merge with a flour producer in order to combine resources and lower its costs.
bio_man,  tlcartier
goji.go Author
wrote...
#2
11 years ago
Thanks for helping me with my business review homework.
Diesel
bbb
wrote...
#3
10 years ago
You're very welcome, but pls mark as solved.
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