Professional Documents
Culture Documents
Bui Lan Anh Ly Uyen Van Do Viet Thang Le Tuan Dung Ho Thi Yen Vy Nguyen Thi Hai Yen
Bui Lan Anh Ly Uyen Van Do Viet Thang Le Tuan Dung Ho Thi Yen Vy Nguyen Thi Hai Yen
Bui Lan Anh Ly Uyen Van Do Viet Thang Le Tuan Dung Ho Thi Yen Vy Nguyen Thi Hai Yen
I.
Organizational architecture
1. Definition
Organizational structure
Control systems and incentives
Processes, organizational culture, and people
II.
Vertical integration is a strategy used by a company to gain control over its suppliers or
distributors in order to increase the firms power in the marketplace, reduce transaction
costs and secure supplies or distribution channels. There are 2 sorts of vertical
integration: Backward integration and Forward integration
Forward integration is a strategy where a
firm gains ownership or increased control
over its previous customers (distributors or
retailers).
Backward integration is a strategy where a
firm gains ownership or increased control
over its previous suppliers.
For example: The company has to decide if
it only manufactures its products or would
engage in retailing and after-sales services
as well. Two issues have to be considered
before integration: Cost and scope of the
firm.
Horizontal Integration
It is a type of integration strategies pursued by
a company in order to strengthen its position in
the industry.
A corporate that implements this type of
strategy usually mergers or acquires another
company that is in the same production stage.
For example, Disney merging with Pixar
(movie production)