Friday, November 13, 2009

Fullers case study

Task 3:

Economies of Scale would be the best reason for the acquisition because through the acquisition the company can expand its product sales and make more of the product than they were producing before the aquistion. When a firm acquires another firm it is gaining a larger scale of operations, such as more labor and more equipment. In Fullers case, buying Gales has helped expand production and gain a larger margin of profit for the company.

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