Got a tricky question? Receive an answer from students like you! Try us!

GE and the Honeywell. Argument For And Against The Commission Decision. - Essay Example

Only on StudentShare
Finance & Accounting
Pages 12 (3012 words)


The Commission opined that the merging of the EG and Honeywell would enable the entity to partake in more coercive forms of bundling, which would effectively deprive the consumers of choice. …

Extract of sample
GE and the Honeywell. Argument For And Against The Commission Decision.

According to Pfanz (2001), the categories of bundling might have included pure and mixed. Indeed, as the paper progresses it would be simpler to deduce the category. The Commission suggested that the bundling technique would have many pleasant effects on the merged GE and Honeywell’s competitors in the markets for aerospace equipment and jet engines. This is because the rivals’ market shares would be eroded by their incapability to compete with the joined entity package deals, which in turn would lower the profitability of their rivals leading to their exit (Schlossberg & American Bar Association. Section of Antitrust Law 2008, p. 17).
The Commission thought that the ability of the company to employ bundling would enable the combined corporate to offer complimentary goods at a reduced price compared to when the products are sold separately. The Commission suggested that bundling would lower the revenues for the GE’s and Honey well’s Competitors in the market. The reduction of revenues would be advantageous to the companies since it would reduce their competitors’ ability to invest. Moreover, it would augment the companies’ capabilities of competing effectively. According to the Commission’s view, the prices could rise in future, and this would cause harm to their rivals and customers in the market. ...
Download paper
Not exactly what you need?

Related Essays

Hedging against a Weak Dollar
This paper aims to discuss financial hedging against a weak dollar. A. Euro/US dollar Rate of Euro/Dollar over the last five-year period For the five-year period ranging from 2007 to the end of 2011, the US dollar has experienced numerous fluctuations. The highest value of the Euro in comparison to the dollar was 1.5991, during the 2008 global economic crisis, when American multinationals were…
8 pages (2008 words)
Evaluation of Bouwsma's Argument
(4) We are not deceived about the world around us (A-). If we closely analyze the argument above as Bouwsma put it, we will notice in the major premise (1) that A is either B or B-. He then proceeds to prove in the minor premises (2) and (3) that B = A- and that B- = A-, and so he concludes that A- is true, thus implying that A in the major premise is not true. What Bouwsma is trying to say here…
3 pages (753 words)
Financial Decision Making
The price earnings ratio measures the relationship between stock dividend payout and a stock’s market price in order to compare a stock’s performance against any other stock. One can also use earnings per share in order to determine how a company compares to another in terms of current dividend paid. This two key investment ratios can only be used with company’s that are publicly traded and…
3 pages (753 words)
Managerial Decision Making
I have also been asked to perform a self evaluation of the decisions made and to evaluate them myself as to whether I think they were a success or failure for the organization. My supervisor has asked me to email him this evaluation as part of my own yearly evaluation which will be used to decide my yearly bonus, so I have decided to make it as professional as possible. Discussion In posting my…
5 pages (1255 words)
management accounting & decision making
As at September 30, 20X0 Property, Plant and Equipment 1,840,000 Less: Depreciation (133,167) Net Book Value 1,706,833 Inventory 9,000 Receivables 144,585 Cash 172,700 Total Assets 2,033,118 Owner's Capital 2,000,000 Profit for the year (92) Creditors 12,960 Overhead cost payable 20,250 Total capital and liabilities 2,033,118 The above statement presents the cash budget, income statement and the…
8 pages (2008 words)
Accounting and Decision Making
It is prudent to treat such income as accrued or deferred income as it has not been received and should not be treated as sales income (Nikolai et al 2009). The accounting standards require that revenue should be recognized when earned and received. Invoices raised on a long term contract for a customer show an ending balance of 219,750. The company is confident that the amount will be fully…
6 pages (1506 words)
Accounting For Decision Making
To do this, we had to conduct research on the two companies’ performance over the years and analyzed the data using financial ratios and statistical graphs. From our findings we found out that fantastic holdings has good gross profit margins but has higher expenses rates which reduces the net profit margin (Whiteside 2007). It was also evident that fantastic holdings has good profits in…
9 pages (2259 words)