BSM 100 Lecture 5: BSM 100 October 4th Notes

• School: Ryerson University
• Department: Business Essentials
• Course: BSM 100
• Professor: Ranjita Singh

Document Summary

Growth opportunities, operational efficiencies, and competitive advantages. If you want to do it fast (timing matters) If managed well profits higher/faster (if managed bad it can be very hard on both companies, so better to do organic growth if possible) Horizontal merger: (bank joining another bank) same line of business. Vertical merger: joining hands with supplier or customer (if it makes business sense, right quality at right time) Diversify risks (if one industry is failing you have the other to make up for it), using brand (managing the business cycles) When less is more (trying to make $ by getting rid of. Something: not matching vision, not matching with skills & resources, can profit from sale, obsolete. Spin-off: sell it to existing shareholders (motorola left the phone business as smartphone business began, and stuck with what they excelled at infrastructure) Setting up the division or part of the business as a separate entity (selling shares to exising shareholders)