Drug firms in $41bn giant merger

Level 1: Knowledge
1a) Describe the following words or terms

• Merger


• Inorganic Growth


• Organic Growth


• Pharmaceutical Company

Level 2: Application
2a) I own 10,000 shares in Schering Plough. Calculate what I can expect to receive as a result of the merger.
2b) What type of growth strategy does this merger represent? Use your textbook and/or my notes construct a table showing the advantages and disadvantages of such a merger.

Level 3: Analysis
3) Use the information in this article to analyse the statement made by Merck Chairman and CEO Richard Clark, who said "We are creating a strong, global healthcare leader built for sustainable growth and success"

Level 4: Evaluation
4) Should I buy shares in the merged business? Justify your answer!

Note Level 1 – Level 4 are questions based on IB standards where

Level 1: Knowledge
Level 2: Application
Level 3: Analysis
Level 4: Evaluation

Words in bold (define, explain…) have a specific meaning in the IB Diploma Program (DP). The meanings are in Glossary of Command Terms Section of the IBO DP Business and Management Guide available at the OCC and from my website

HBOS: Breaking the bank

This BBC article describes a growth strategy chosen by one of the biggest UK banks. Read the article, and answer the following questions:

Level 1 - Knowledge
1a) Complete the following gap fill - This article describes a planned __________ _______ between Lloyds and HBOS : (horizontal/vertical/backward/forward) (merger/takeover)
1b) Use the information in the article to define the term ‘credit crunch”

Level 2 - Application
2a) Use the information in the article to construct a timeline of the factors that have resulted in the HBOS takeover by Lloyds

Summer 2008 <-------------------------------------------->Oct 2008

2b) Explain briefly how banks like HBOS make money, and my Lehnam brothers collapse caused problems for banks like HBOS
2c) Explain with a suitable diagram what impact this quote “believes big shareholders were getting out fast. “ would have on HBOS share price.

Level 3 - Analysis

3) Analyse the political, social, environmental and technical factors in this article.

Level 4 - Evaluation
4) Discuss the decision of the UK Prime Minister (Gordon Brown) who in being consulted on this situation “personally reassured Lloyds chairman, Victor Blank that competition rules could be bypassed in the national interest”

Note: Level 1 – Level 4 are questions based on IB standards where

• Level 1: Knowledge
• Level 2: Application
• Level 3: Analysis
• Level 4: Evaluation

Words in bold (define, explain…) have a specific meaning in the IB Diploma Program (DP). The meanings are in Glossary of Command Terms Section of the IBO DP Business and Management Guide available at the OCC and from my website

Jerry Yang to quit as Yahoo boss

This article from the BBC covers some of the key ideas that we have just discussed in IB topic Growth and Evolution. Read it and answer the following questions:

Level 1: Knowledge
1) Define the terms Organic growth and inorganic growth

Level 2: Application
2) Explain why a business like Microsoft can benefit from buying a business like Yahoo

Level 3: Analysis
3) Examine the possible reasons why Jerry Yang has decided to step down as Yahoo CEO (hint this article provides some useful background)

Level 4: Evaluation
4) Discuss whether Yahoo should or should not merge with Microsoft

*** There is a huge amount of useful bacground material to look at here

Note: Level 1 – Level 4 are questions based on IB standards where

• Level 1: Knowledge
• Level 2: Application
• Level 3: Analysis
• Level 4: Evaluation

Words in bold (define, explain…) have a specific meaning in the IB Diploma Program (DP). The meanings are in Glossary of Command Terms Section of the IBO DP Business and Management Guide available at the OCC and from

my website

Boom for online fashion firm ASOS

This article from the BBC ties in nicely with the ASOS case study you are doing...did anyone read it I wonder??