Horizontal And Vertical Merger Analysis

Collaborations is the key to all things, one it comes down to it there is no way that business and labor can achieve their goals without this important element. Business goals are defined as goals that a business expects to accomplish during a period of time. Business tend to set goals that are within their reach. If business were to set their goals and expectations to high, this would cause their workers to feel discouraged thus resulting in low output performance. There are many aspects that business need to consider in order to reach there goals, for instance, hiring the right amount of workers, should they merge with other companies, and should they increase advertising are some things that are kept in mind. In the end, business and labor

In order to achieve this, business must think about how many workers they should hire. By doing so, they are making sure that they are not spending all their money on their workers. Another aspect that business consider is whether or not they should take part in mergers. Mergers include, horizontal and vertical mergers. Horizontal mergers, deal with merging with another company that produces the same good and at the same process as you. This is a great for business, that are trying to save money by letting go of their worker. On the other hand, vertical mergers deal with merging with another company that produces the same product as you but at a different process. This is great for business that are trying to save money on manufacturing and paying for less labor. Not only do mergers, allow business to better achieve their goal by hiring less labor it also allows them to save money on advertising. There are many aspects business must take in consideration in order to produce the most money

Both businesses and labor have the same goal, which is to make the most money possible. This goal is unachievable without collaboration, since their goals are similar they convey a problem for both parties. In order for one to benefit the other must lose money. The only way to prevent this is by setting the worker's wage to the equilibrium wage, which is where supply of workers and demand for the amount of workers businesses want to hire meet on the graph. If business were to set the workers pay higher than the equilibrium wage they would be the ones losing money, and vise versa if they gave their workers less than the equilibrium wage. To quote Ralph Ransom: “Before the reward there must be labor. You plant before you harvest. You sow in tears before you reap