Business Combination

Unification or several business units which

are similar or different in nature, in order to
serve a common purpose of all the units.
It may be simple or complex.
 Cause of combination
• Facing Competition.
• Growth of joint stock company.
• Promoting economic growth.
• Self defense of the individual units.
• Desire for prestige and power.
• To obtain economies of scale.
• To combat depression and recession.
• Research and development
• Finance Pool
• Cost reduction
• Profiteering motive
• Government policy
 Advantages

• It provides economies of large scaleproduction and

operation
• Risk of overstocking is minimised and distributed
among the units
• Profitability enhance due to joining of hands
• It closed down the inefficient unit.
• It promotes foreign trade and helps t build up
foreign currency
• It maximize the value of share
 Disadvantages
• It promotes higher price for goods and
services due to absense of competition
• It provides opportunity t practice unfair means
by the combined unit.
• Its difficult to manage a huge size combined
unit
• It encourages imperialism , bureaucracy and
monopoly
 Different types of combination
• Vertical
• Horizontal
• Compulsory
• Voluntary
• Lateral
• Territorial
• Circular
• Diagonal
 Different forms of Combination
• Simple combination
• Complex Combination
Simple association:-
a) Trade Unions
b) Trade associations
c) Chamber of commerce
d) Informal agreements
Federation- When several units combine together , but
retain there individual identity, then it is known as federation
Consolidation-It is a technique adopted by the combining
units to be operated by unified management.
• The Associated Chambers of Commerce and Industry of India
(ASSOCHAM) is the umbrella body of chambers of commerce in
India.Established in 1920, it currently has a membership of over
100,000 companies across the country. The organisation represents
the interests of trade and commerce in India, and interacting with the
Government of Indiaon policy issues, and liaisoning with their
international counterparts to promote trade between India and other
nations.
• The Associated Chambers of Commerce and Industry of India
(ASSOCHAM), India's premier apex chamber covers a membership of
over 2 lakh companies and professionals across the country. It was
established in 1920 by promoter chambers, representing all regions
of India
• ASSOCHAM initiated its endeavor of value creation for Indian industry
in 1920. Having in its fold more than 300 Chambers and Trade
Associations, and serving more than 2 lakh members from all over
India. It has witnessed upswings as well as upheavals of Indian
Economy, and contributed significantly by playing a catalytic role in
shaping up the Trade, Commerce and Industrial environment of the
country.
• Today, ASSOCHAM has emerged as the fountainhead of Knowledge for
Indian industry, which is all set to redefine the dynamics of growth and
development in the technology driven cyber age of 'Knowledge Based
Economy'.
• ASSOCHAM derives its strength from its Promoter Chambers and other
Industry/Regional Chambers/Associations spread all over the country.
 Vision
• Empower Indian enterprise by inculcating
knowledge that will be the catalyst of growth
in the barrierless technology driven global
market and help them upscale, align and
emerge as formidable player in respective
business segments
 Mission
• As a representative organ of Corporate India,
ASSOCHAM articulates the genuine, legitimate
needs and interests of its members. Its
mission is to impact the policy and legislative
environment so as to foster balanced
economic, industrial and social development.
believe education, IT, Health, Corporate Social
responsibility and environment to be the
critical success factors.
• The Confederation of Indian Industry (CII) is a
non-government, not-for-profit, industry-led and
industry-managed organisation, seeking to play a
proactive role in India’s development process. The
organisation works to create and sustain an
environment conducive to the growth of industry
in India , partnering industry and government
alike through advisory and consultative processes.
The confederation is headquartered in New Delhi
 Function
• CII aims to usher change by working closely with government on policy
issues, enhancing efficiency, competitiveness and expanding business
opportunities for industry through a range of specialised services and
global linkages. It also provides a platform for sectoral consensus building
and networking. Major emphasis is laid on projecting a positive image of
business, assisting industry identify and execute corporate citizenship
programmes. CII undertakes research, interacts with key government
officials and disseminates information through publications, seminars and
events.
• With 64 offices in India, 9 overseas in Australia, Austria, China, France,
Germany, Japan, Singapore ,UK,USA. and institutional partnerships with
223 counterpart organisations in 100 countries, CII aims to serve as a
reference point for Indian industry and the international business
community.
• CII was established in 1895. The initial partners were five
engineering firms, all members of the Bengal Chamber Of
Commerce and Industry. In the beginning, the name of the
organization was Engineering and Iron Trades Association (EITA).
EITA was set up with a goal to pressurize the British government to
place government orders for iron and steel and engineering goods
with companies based in India (the practice then was to place
government orders with firms based in UK). The name was
subsequently changed to Indian Engineering Association (IEA),
Engineering Association of India (EAI), Association of Indian
Engineering Industry (AIEI), Confederation of Engineering Industry
(CEI) and finally to Confederation of Indian Industry (CII) in 1992.
 FICCI
• The Federation of Indian Chambers of
Commerce and Industry (FICCI) is an
association of business organizations in India,
headquartered in the national capital New
Delhi. FICCI is one of the main organizations to
fund and support many governmental and non-
governmental educational institutes. It was
founded by GD Birla and Purushottam Takkur in
1927, on the advice of Mahatma Gandhi.