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Expansion and Merger

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RUNNING HEAD: EXPANSION AND MERGER

Expansion and Merger ECO 550 – Managerial Economics and Globalization Xiaodong Wu Ph.D., Instructor August 26, 2012

Expansion and Merger
The essence of retail marketing is developing merchandise and services that satisfy specific needs of customers, and supplying them at prices that will yield profits.
Competition in the today's business marketplace often demands that organizations merge with each other to remain competitive and increase revenue, profits and market share. Others may be looking to consolidate their operations to achieve economies of scale and standardization of processes. Mergers and acquisitions occur when a company buys, sells, or combines with another company within the same country or across borders (Luthans & Doh, 2009).
Government regulation is constantly present in our lives. This paper is a continuation from assignment two and will look at how government regulations affect expansion and merger in the retail industry. “Mergers can be competitive strategies, or they can be attempts to create firms large enough to exercise market power” (Michaels, 2011). Successful mergers are a combination of four critical components: culture, business practices, technology, and time. Bringing these elements together requires careful planning and coordination. The longer it takes the more costly it will be, and the potential for failure will be greatly increased.
Explain why government regulation is needed, citing the major reasons for government involvement in a market economy.

Government regulation is needed in the retail industry to make sure that the public’s interests are…...

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