This week let’s discuss integr
This week let’s discuss integration. 1. Name a company thatpractices horizontal integration and describe the structure. 2.Name a company that practices vertical integration and describe thestructure. 3. In your opinion, which is better to work for? Whichoffers workers the better opportunity to better yourself? 4. If youowned the business, which would you implement? Think again aboutthe workers opportunities. Does their betterment also mean what’sbest for your business? Please number each question and provide onespace between responses.
Answer:
1. HorizontalIntegration: Horizontal integration is the processof a company increasing production of goods or services at the samepart of the supply chain.
For Example: After reaching a certain level of success,Walt Disney has been considering ways to expandand increases profits. Disney started out as an animation studiotargeting children and families, which also represent theircurrently core target audience. However, in the process ofdiversifying and developing their company, disney did a horizontalinto live action films (for example, Pirates of the caribbeanseries). In this manner the company managed to reach new audienceand control a bigger share of the film industry.
2. VerticalIntegration: Vertical integration is a processwhich is undertaken by the company to improve its control over thesupply chain and give a better managed, more efficient and highlycontrolled supply chain. It mainlt involves the parent company aswell as its vendors and customers
There are three types of vertical integration
- Backward vertical integration
- forward vertical integration
- Balance vertical integration
for Example: Apple Inc. is one of the best known companies forperfecting the art of vertical integration. The companymanufactures its custom A-series chips for its iphones and ipads.The company has also integrated forward as much as backward. TheApple retail model, one where the company’s products are almostexclusively sold at company owned location, excluding best buy andother carefully selected retailers, allows the business to controlits distribution and sale to the end consumer.
3 In my opinion, Vertical integration is better, because of itincreases it retails outlets. so that high profits will begenerated through vertical integration whether Forward or Backward.Vertical integration only provides better opportunity to manyworkers, because of company may invite the franchises and outsideretailers, so it will give more for many workers in thecompany.
4. If i owned the any business i would implement the 2nd optionthat is vertical integration, because of if i sell my fame and nameof company by Franchises, so it will give me the much more benefitsthan from horizontal integration.
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