The economy today is not stabilized. Even big companies have to confront the ups and downs that come their way. But the only thing that keeps them going is survival. They have to survive in the market and progress swiftly or gradually. One strategy to advancement is that of ‘mergers’ between companies. There are numerous mergers that take place locally but they do not have a great effect on the market especially the consumers. But the mergers that take place at the national or international level have a profound impact on the economies of the concerned countries.
There are different reasons behind a merger of two or more companies. But first of all there exist diverse types of mergers.
a) Horizontal Mergers- where two competing companies conjoin to form a single large company. The companies in horizontal mergers are selling the same product in the same market and so are contenders to each other. Such a merger can have a tremendous influence on the market from creating monopoly to escalating prices of the commodity. This is precisely the reason that The Federal Trade.
b) Commission that is worried about the market and the consumers keeps a hawk’s eye on such mergers and at times detains the companies from merging in the interest of the people.
c) The Vertical Mergers- are the mergers between a supplier and the distributor company of the supplies. This is an anti competitive merger but can be highly beneficial to the company. It is because the distributor will no more have to pay for the manufacturing of the supplies, it gets the product at the base price. So there is good cost saving due to this. Vertical merger also rules out lot of competition from the market.
d) Market Extension Merger is between the companies selling same product but in different markets. This merger enhances the market for the two companies since they now act as one sole company.
e) Product Extension Merger is like the one between an eminent company making motor parts and another that makes their own cars. So, the companies involved here sell different but more or less the same product in the same market. This merger promotes the sale of both the companies significantly.
f) Conglomeration is a merger where the concerned companies have nothing in common to sell.
There are various reasons behind merger of companies. Like
a) Synergy factor prompts the merger of most of the companies. The synergy in business pertains to the cost saving and revenue enhancement. The companies after merger decrease the staff keeping only the skilled labor, work with a single managing director, CEO etc. So there is good outlay saving. Moreover the economy of the sale i.e. the purchasing power of the company booms after merger.
b) To increase the output and rule the market- many mergers are made with the intention to oust the competition and jointly rule the market. This presupposes healthy relations between the competing companies.
c) Mergers also take place when a company is not able to perform well due to some or the other cause like the lack of required investment in the form of capital, tremendous competition etc. In such a situation this company can merge with one its parent company or any other company that has faith in the prior goodwill of the declining company and in its potential to grow and enhance. So companies also merge in order to overcome their internal inconsistencies.
d) Many a mergers besides economically are also politically driven.
e) Acquisitions which imply taking over of one stronger company with the other weaker one are also at times veiled by the name of merger.
However, the directors who plan to merge their companies should actually contemplate over it, keeping in mind all the possible pros and cons. They must seek advice from neutral financial consultants who do are more inclined towards the welfare of the company and not their own. Their own benefit is also hidden in a merger since the wages of the employees increase with the advancement due to merger. So it is recommended to take advice from all those who are the well wishers of the company before taking any concrete step in this direction.
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The USS Anchorage sailed through the ice floes of upper Cook Inlet and docked at the Port of Anchorage on Wednesday morning. The new U.S. Navy amphibious transport dock ship, 684 feet long and about 10 stories high, is moored in its namesake city for its official commissioning ceremony on Saturday.
The public is invited to tour the ship on Thursday and Friday. Here is some of what you can expect to see.
The flight deck, about an acre in size, from which helicopters and vertical-takeoff aircraft operate.
Medical facilities said to equal a small town hospital, with operating rooms, intensive care beds and a dental clinic capable of performing root canals.
The bridge, with a .50-caliber machine gun to remind us that this is a warship.
The pilot house, with a big map of Cook Inlet spread out. In the age of GPS, the Anchorage still has a use for nautical charts.
The Central Control Station controls the ship’s power and other functions, like water desalinization. It’s one of the few duty stations with its own coffee pot, because personnel on watch cannot leave the post.
ATM machines let crew members charge vending machine cards.
An enormous parking and maintenance area runs nearly the length of the hull, holding Humvees, eight-wheeled land assault vehicles and a M777 howitzer. It terminates in a well deck section that can be flooded so hovercraft, boats or amphibious assault vehicles can enter through giant doors on the stern.
From the well deck, it’s a long climb back to the flight deck where visitors disembark. The ship is not handicapped accessible and visitors will need to climb several steep ramps and ladders. They can be tricky to descend.
Most doors are really hatches, with a tall lip at the bottom that must be stepped over. Changes from bright light to dark make it harder to spot potential obstacles, so move carefully.
Do not bring backpacks or large handbags; this is not just a security matter; such items can catch on things or make it difficult to move in tight spaces. You want your hands free to deal with ladders. Though children are welcome, babies are not a good idea.
Do not enter prohibited areas, which are indicated by signs and chains.
Knives, glass containers, toy weapons and liquids in containers larger than 20 ounces are prohibited. Cell phones and cameras are permitted but their use may be restricted in certain areas.
TOUR TIMES
The public may tour the USS Anchorage from 1 to 8 p.m. Thursday and 2 to 8 p.m. Friday. Access for members Rays 3 Longoria Red 2011 All Star Jerseys of the public is only available by shuttle bus from the Northway Mall and Sullivan Arena. Buses leave at approximately 30-minute intervals.
You must take the bus; you cannot drive your private vehicle into the secure area of the port.
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Saturday’s Commissioning Ceremony can be attended only by those already holding one of the 4,000 tickets.
USS ANCHORAGE BY THE NUMBERS
Length: 684 feet
Beam: 105 feet
Displacement: 25,000 long tons
Sustained speed: 22+ knots
Crew: 360 sailors, 3 marines
Troop capacity: 699; 800 in surge mode
Weapons: MK 31 rolling airframe missile launchers
MK 46 30mm guns
MK 26 .50 caliber machine guns
Cost: $1.3 billion
Base: San Diego, Calif.
Reach Mike Dunham at or 257-4332.
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