This 10 page paper looks at a case study of attempted expansion and profit maximisation by way of vertical expansion through acquisition. The case study concerned can be seen as a lesson in the mistakes and risks of this type of expansion. Moving away from core competencies is always a risky proposition, BMD, a lumber yard company attempted forward integration without the necessary changes required. This paper is a demonstration that a perceived synergy is not always real, and considers the other changes needed to make vertical integration a successful and profitable exercise.
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Name of Research Paper File: TS14_TElumver.wps
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