Management and Organizational Studies 1023A/B Lecture 9: Mos - Lecture 9 textbook Notes

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Large amount of trading (cid:224) shares are cycling from regular investor into hand of specialists (cid:224) this specialist are called arbs (cid:224) arbs are only interested in selling as long as the price is right (cid:224) arbs buy the shares after announcement (cid:224) they pay a premium and then expected to get a bigger premium when they sell. Economics of scale(cid:224) arise when bigger is indeed better: reducing capacity (cid:224) industry has grown too big and there are too many firms operating in it(cid:224) this situation often called over capacity m&a, spreading fixed cost (cid:224) significant cost in a business are fixed (cid:224) increasing company size, these cost spread over greater volume, and the firm is more efficient, geographic roll up (cid:224) occurs when a national firm is created out a series of regional firm (cid:224) allow common marketing and managerial overhead (cid:224) improvement in the distribution channel.