HRM 3430 Lecture Notes - Financial Statement Analysis, Executive Compensation, Strategic Planning

• School: York University
• Department: Human Resources Management
• Course: HRM 3430
• Professor: all

Document Summary

Conglomerate merger the merger of two organizations competing in different markets managers likes to manage larger companies to have more status and power. Acquisition the purchase of an entire company or a controlling interest in a company. Consolidation two or more organizations join and form a new organization. Companies merge for 3 reasons: strategic benefits, financial benefits, needs of the ceo or managing team. Operating synergy the cost reduction achieved by economies of scale produced by a merger or acquisition. Vertical integration the merger or acquisition of two organizations that have a buyer-seller relationship. Horizontal integration the merger or acquisition of rivals. Organizations need to reduce the variability and risk of their cash flow. Organizations often use cash cows the fund star operations. All growth strategies have different tax implications. Developing new products and entering new markets is expensive. Managers may pursue their personal interests at the expense of stockholders. Often the motives of executives can be deemed unconscious.