Lesson Plan

• Describe the three forms of external growth: horizontal, vertical and lateral integration.
• Explain the main motives, advantages and disadvantages of each integration type.
• Calculate market‑share and cost‑saving effects of a merger using the given formulas.
• Evaluate which integration strategy best fits a given firm scenario.
• Apply regulatory considerations when assessing horizontal mergers.

• Projector and screen
• PowerPoint slides summarising integration types
• Printed handout with comparative summary table
• Case‑study worksheets (one per group)
• Calculators
• Whiteboard and markers
• Exit‑ticket slips

Begin with a headline about a recent high‑profile merger to capture interest. Ask students what they already know about internal versus external growth and link this to economies of scale. State that by the end of the lesson they will be able to identify, analyse and evaluate the three integration strategies and their economic implications.

1. Do‑now (5'): Quick quiz on internal vs external growth; collect responses.
2. Mini‑lecture (10'): Overview of external growth and the three integration types using slides.
3. Group case‑study activity (15'): Each group works on a horizontal, vertical or lateral merger case, listing motives, advantages and disadvantages.
4. Guided calculation (10'): Using supplied data, students compute market share and cost savings for a horizontal merger.
5. Whole‑class discussion (10'): Groups share findings; teacher highlights regulatory issues and strategic fit.
6. Summary & exit ticket (5'): Students write one key takeaway and one lingering question; collect tickets.

Recap the three integration forms, their motives and the quantitative tools introduced. Collect exit tickets to gauge understanding and clarify any misconceptions. For homework, ask students to locate a recent merger or acquisition, identify its integration type, and write a brief analysis of its likely economic impact.