The discussion answer(s) must be a minimum of 125 words of substance with any references cited in APA format. No copying and pasting of work previously done for someone else.

Business Growth Strategy – Horizontal and Vertical Integration

Mergers and acquisitions are ways in which firms can generate growth measured by expectations of higher profits and linked to higher profits is expected higher stock values. Growth in profits in mergers and acquisitions arise through gains: in economies of scale; gains in economies of scope; and, sometimes by gains in both economies of scale and scope.


What is the difference between an economy of scale and an economy of scope?


Identify a recent merger/acquisition and use it to explain: was the merger/acquisition predominately about gaining economies of scale or economies scope?

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