GGR252H5 Lecture Notes - Lecture 2: Fast Food Restaurant, La Senza, Organic Growth
Document Summary
Opening new stores; usually takes quite a while but financing can speed things up. Retailers opt to go to the highest order locations (i. e. areas with highest populations or economic activity) then expand to lower ones. Intensify store opening in a particular region and expand outward into neighbouring locations. Goes to big cities and infill surrounding areas. Use contagious diffusion, expand into areas just over the border first (less risky, less costly) Mergers: two or more companies combine to create a brand new company. Acquisitions: purchase of over 50% of shares in one company by another company. Bestbuy future shop, loblaws shoppers, victoria secret la senza. Takeovers: one firm purchases controlling shares, the purchased firm stays in existence. Merger and acquisition is faster in terms of expansion. Post-merger rationalization: eliminating redundancy and increasing efficiency. Newly merged firms will usually have significant geographical overlap in provision of service. Often, closures will occur where there is perceived overlap.
