Vertical and Horizontal Integration

It is the goal of any business to be profitable and sustainable in the short-run and in the long run. To achieve this, many firms come up with a number of methods and strategies that tend to utilize their resources and capabilities in an effective and efficient manner. As a result, such organizations tend to become market leaders and command a large market share in their respective industries.Advertising We will write a custom essay sample on Vertical and Horizontal Integration specifically for you for only $16.05 $11/page Learn More Vertical and horizontal integration are amongst the most used methods in ensuring that companies have a competitive advantage over their rivals. These methods are therefore grand strategies that aim at giving companies the right direction in terms of their running, operations and management. Through their application, companies have the chance to have a competitive advantage over their rivals and command a large market share . Horizontal integration is the process through which firms in the same industry and similar level of production merge to jointly produce goods and services. This joint operation normally tends to reduce production and operating costs. As a result, such firms tend to produce their goods and services at a cheaper price as compared to other individual companies who undertake the whole process of production on their own. To stand on a stronger base, firms that decide to adopt this strategy should be experts in their respective fields. Through horizontal integration, firms are able to exploit the economies of scale to their advantage. This is because they incur costs jointly. Examples of costs that firms are able to incur jointly include transpiration, warehousing, advertising, selling and distributions, purchase of raw materials and labour costs. Such companies will thus produce their goods and services at a cheaper price as compared to their rivals. Due to this fact, they will stand a chance of sell their goods at a lower price as compared to other firms in the market. This will in turn increase their market share. As a result, such companies will have a competitive advantage in their industries. In addition, through merging up, companies that have adopted this strategy will enjoy the privileges of monopoly. The entry of new firms into the market will be difficult due to the high market share that they hold.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In the motor industry, Volkswagen is a company that has benefited greatly from horizontal integration. The company merged with Skoda to manufacture vehicles. Their main target group were the members of the middle and lower classes of the society. Through their expertise, they were able to manufacture cheap and efficient cars that are desirable for individuals of these classes. At the present moment, Volkswagen is in th e process of merging up with Porsche to produce luxurious cars for the individuals of the upper class. Once this is in place, Volkswagen will have a large market share in the motor vehicle industry in Europe by having cars that meet the needs of all individuals in the society. As a result, the company will have a competitive advantage over other companies that target a specific class in the society. Vertical stratification is also another grand strategy that can enable firms to have a competitive advantage and command a large market share. This method is achieved by the acquisition of suppliers or consumers in a market by a firm. This strategy has the following options: Forward integrations Backwards integration Full integration Taper integration In forward integration, a firm acquires a company whose level of production is in a later stage while in backward integration, a firm acquires a company whose level of production is in an earlier stage. In full integration, a firm control s all the activities of manufacturing a product. In taper integration, on the other hand, a firm manufactures goods and services by merging with suppliers of raw materials and distributors of the products. Using the concept of vertical integration brings about a number of benefits within an organization. This concept tends to reduce costs, improve the efficiency of production and improve on the quality and quantity of the product. These facts are essential in ensuring that companies have a competitive advantage over their rivals. Porters Grand Strategies There are several factors that affect the manner in which firms operate within their respective industries and the profitability they enjoy. The attractiveness that a firm has in the industry in which it is operating is a primary factor in the determination of the profitability that the firm will enjoy.Advertising We will write a custom essay sample on Vertical and Horizontal Integration specifically for you for only $16.05 $11/page Learn More The position that a business holds within the industry is an operating in acts as a secondary factor (Quick MBA, 2011). Therefore, a firm may be in a state of earning profits that are below average but due to its strategic positioning it still earns high returns. According to Michael Porter, a firm positioning depends on the manner in which it is utilizing its strengths (Quick MBA, 2011). The strengths of a firm depend on whether a firm wants to cost conscious or differently from its rivals. While a firm is operating on a broad or narrow scale, it can achieve this either through cost leadership, differentiation or focus (Quick MBA, 2011). The following graph shows Porters grand strategy model. Using the cost leadership strategy, a firm will focus on reducing its cost of production. To achieve this, a firm may seek cheaper raw materials, use the most efficient methods of production or reduce its labour costs. As a result therefore, the avera ge cost of production per unit will be reduced. Such a company may sell its goods and services at the average market price or below the market price. Selling the goods at the market price will ensure that the company earns more profits as compared to its rivals. On the other hand, selling the goods below the market price will reduce the revenue of the company but will earn it market share. For this strategy to be successful, a company needs to have a lot of capital, expertise, skills and efficient channels for marketing and distribution of its products (Quick MBA, 2011). IKEA is one of the companies that use this technique. Since its incorporation, the company has been coming up with means of reducing its production costs in order to reduce the prices of its commodities. The strategy has been successful since IKEA has grown to become one of the leading furniture manufacturing and retailing companies in the world. This strategy has its own risks.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Other firms may also decide to lower down the costs of their goods and services. Technological advancements also lead to the formulation of more efficient methods of production that reduce costs and increase the quantity of production. Other firms may also decide to target narrow markets. All these factors will reduce the competitive advantage that a firm had gained as a result of using this strategy. To build on its strengths, a firm may also adopt the differentiation strategy. While using this strategy, a firm will try to have a competitive advantage by producing goods that are different or unique as compared to the ones that are currently in the market. These new version or types of goods should suit the needs and requirements of consumers in a better way as compared to the goods that are currently present in the market. As a result, many customers will prefer the new version of the goods and services that are produced by the firm. This will in turn increase the demand for the go od and consumers they may become loyal to the product and the brand. In addition, they may recommend it to other individuals. This will in turn increase the market share of the firm in the industry. In addition, the company will have a competitive advantage over its rivals. To achieve this, a firm must be innovative and invest on research. It must also have a skilled and innovative team and must use brilliant marketing techniques to reach its target group. Imitations from rivals coupled with changes in consumer tastes and preferences are the main risks to this strategy. A firm that adopts the focus strategy is one that operates within a narrow range of the market. Due to this fact, such firms would like to achieve a mix of differentiation and cost advantage. To achieve this, a firm normally identifies a specific target group in the market and produces goods and services that meet their specific needs. Due to this fact, such firms are able to satisfy the needs of their customers and earn consumer loyalty. It will therefore be difficult for new firms to enter into this market due to the brand loyalty that the target group has for the firm. Firms operating in such markets may also sell their goods at high prices since they do not have close substitutes. However, there are some risks that are involved. These include changes in consumers tastes and preferences and imitations. Other firms may also focus on a section of this target market and supply them with a good that is of a better quality. Reference Quick MBA, n.d, Porter’s Generic Strategies. Available at:Â  http://www.quickmba.com/strategy/generic.shtml This essay on Vertical and Horizontal Integration was written and submitted by user Al1a to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Do Not Judge A Book By Its Cover Essays - Virtue, Knowledge

Do Not Judge A Book By Its Cover Essays - Virtue, Knowledge Do Not Judge a Book by Its Cover We as teenagers are often defined as shallow, naive, and sometimes uncompassionate youngsters. Most of this recognition comes from our common failure to take social risks and possess an open mind. We are all one student body, yet we are so separated in many aspects. Much of the segregation exists because we are unable to look past appearances. What gives designer clothes, thick lensed glasses, or different hairstyles the authority to determine if we are people who are worth knowing? Would you feel hurt if people rejected you because you had a few pimples on your face? Would it be fair? These days, there is too much emphasis on looks. If everyone would take a brief moment to see the shining wit or loving personality in a person instead of his or her body, then the world would unmistakably be a better place. There are many truly great and natural differences among people. ?Nerds? are not ?football players.? Their talents, skills, and capacities are not the same. An unalterable condition in human society is that the lowest cannot be made equal with the highest. Nature is vain. However, these conditions are adapted to benefit both individuals as well as the community. Life requires varied aptitudes, diverse services, and miscellaneous types of people to carry on its affairs as life as a whole. Drawn by our natural tendencies to fall into peer pressure, in our feelings of inadequacy, we constantly seek to form exclusive associations or ?cliques.? Within these groups, we should discourage any exclusion based on the wrong reasons such as appearances, which many people cannot drastically change. It is important to remember that our harmony depends on our effort and ability to accept others in whatever form they come, even if they are different in ethnicity, religion, or appeara! nce. All forms of conformity are self sacrilege. We are in a state of many changes, a chance to try new things, and to discover who we really are. One?s struggle to be their own person inside as well as out is an admirable task that calls for courage. Do not ridicule those who walk down the hall with mismatched socks pulled up to their knees, or those who wear bright, patterned clothing. They are only expressing themselves and sharing their uniqueness. Our inability to individualize people is a weakness that we must not dismiss. The recognition of our rights, individual and collective, include our most basic obligation: respect for our peers. Next time, think about what is in a hairstyle, or what is in make-up. Sadly, they both have too much significance in our superficial expectations. Man is a person endowed by our Creator with gifts of body and mind. We are all created in His image and likeness. We, as imperfect sinners, do not have the right to judge or question His wisdom. Rather we are obliged to regard our bodies as good and honorable. Mankind is not wrong when he regards himself superior to bodily concerns. For by interior qualities, he can overcome the whole sum of mere things. The intellectual nature of the human person needs to be perfected by wisdom, for wisdom gently attracts the minds of mankind in a quest for love of what is true and good. It is important to remember when wisdom and understanding is present, man can pass through visible realities to discover the real person within. Never judge a book by its cover. Appearances can be deceiving. Within the most unattractive people can lie the most caring hearts. They are able to give to uncaring people, like ourselves, the gifts of forgiveness and friendship. Just imagine that each gift is wrapped with unconditional love and delivered with the most genuine smile. Let there be no more victims of discrimination. Ignore the false perceptions of beauty that society has imposed on us. Remember, true beauty lies within. As soon as one realizes that in their heart, everyone may be better known, better loved, and better served.

The Case Study of Club Med Essay Example | Topics and Well Written Essays - 1000 words

The Case Study of Club Med - Essay Example This cultural concept was picked up during the initial inception of Club Mediterranee whereby both Blitz and Trigano opted to create a vacation camp under the sun that could provide a relaxing experience to guests after the Second World War. Secondly, before the year 2000 it could be argued that the business was largely managed through a paternal approach of which Gilbert Trigano was cited saying that Gerard Blitz and her wife Claudine Blitz were the tutelary parents of the club. Moreover, Philippe Bourguignon who spearheaded major reforms before 2000 in the company, and enabled it to start generating massive profits was disowned by the company’s staffs because of his autocratic management style as they preferred Trigano’s paternalism approach. In regards to the force of competition, it can well be stated that before the year 2000 Club Med had managed to create a monopoly within a unsaturated market niche, which had low level of competition and to a greater extent it co uld be argued that Club Med was the among the first pioneers in the village-camp vacation resorts. According to Magretta (2011), the low threat of competition provided Club Med within an opportunity to expand faster and even diversify to other related businesses. Before the year 2000, Club Med faced low threats of competition since the village –camp vacation resorts had not yet gained wide fame and most players in the hospitality industry only focused on providing customers with high quality experience within high-class tourism facilities. In the studies by Saloner et al. (2001), the low threat of new entrants could further be attributed to the limited knowledge that potential competitors had about the operations of village camp vacation resort and the high amount of capital that was required since constructing a village required a huge pieces of land situated at strategic locations. Before the year 2000, the threat of substitutes was very eminent since there were many excell ent hotels and resorts that had been established. Moreover, substitutes presented a major competition more so for the high-end clients who preferred high-end hotels and luxurious resorts instead of the village-camps where tourist resided in camps. In regards to the buyers’ power, it was stated that because of the availability of numerous substitutes buyers wielded a lot of bargaining power and hence why Club Med offered it services at an affordable range. As for suppliers bargaining power, Magretta (2011) stated that a business organization would be able to wield more power against the suppliers if for instance the business organization buys supplies in large volumes, the switching cost of firms in the industry is low, and there is presence of substitute inputs. As for Club Med before 2000, it is correct to state that it had a stronger bargaining power because of the fact that it had a wide branch network and therefore, it bought its supplies in bulk, which means it was capab le of negotiating for better prices. Reasons for Club Med’s success between 1950s and 1990s In the writings by McLimore (1996), he attributed the success of any venture to the leadership of the venture. In regards to the case study of Club Med its success between 1950s and 1990s can largely be attributed to the exceptional leadership by Gerard Blitz and Gilbert Trigano, who

Government of the Peoples Republic of China Essay

Government of the Peoples Republic of China - Essay Example An assessment of how majority of the stakeholders (the Chinese living in the countryside) benefit from the economic growth of the PROC is essential to qualify the success of being a world power of the developing country. Therefore, a grasp of the policies is important for policies are statements on how the Chinese leadership grapples issues. Moreover, the timeline of this research is beginning from the crucial years of 1978-1979, the time when Maoist China became Dengist. The establishment of the PROC in 1949 heralded a victory for the proletariat's struggle. Many in this working class are farmers who were mostly concentrated in rural China. Hence, it is understandable that development of the agriculture sector and the rural areas remains a priority in a largely agricultural country. In the early years of the People's Republic, in which Mao Zedong was the leader, the principle of collective agriculture was the primary basis in settling policy incongruity. "Ideological imperatives ensured that under Mao, the underlying policy dilemma was resolved through the establishment of a collective agriculture" (Ash 2001, p. 91). Utilizing agriculture to gain surplus was an important element to industrialize, indeed, "the e"the essential developmental role of agriculture is to generate a surplus, albeit one that assumes various forms. A basic imperative is to produce a real surplus: of food, especially for industrial workers and their urban dependants; of raw materials for light industry; and of exports in order to earn foreign exchange" (Ash 2001, p. 77). Labour development was the most evident result and was parallel to agricultural and rural development in Maoist China. "In general, the process of agricultural collectivization was instrumental in providing an institutional framework that went some way toward maximizing rural employment opportunities, albeit at the expense of waste, inefficiency, and the concealment of large numbers of surplus farm laborers"(Ash 2001, p. 78). Mao's death in 1976 provided an avenue for the moderates led by Deng Xiaoping. Modernization of agriculture remained one of the four top agendas, though Deng opted to achieve this by gradually employing an open system. "The ultimate thrust of agricultural policy since 1978 has been to transform China's farm sector from a supply-orientated to a market-responsive, demand-oriented system" (Ash 2001, p. 83). Furthermore, some capitalist aspects were injected to policies in developing agriculture and rural sector under the brand of "Socialism with Chinese characteristics." "In ancillary farming activities (research, irrigation, crop spraying, processing) there does exist considerable potential to realize scale economies and secure the benefits of cooperation. Typically, capitalist agriculture is characterized by the use of small manpower units devoted to the main farm tasks, combined with a significant degree of cooperation in such activities. Farm policy in China during the post-Mao period has increasingly sought to provide institutions that would preserve these valuable aspects of

JSBMHA and HIPPA case study Essay Example for Free

JSBMHA and HIPPA case study Essay There are many faults in this scenario that I read about with Jim and Betty. First of all, when you are dealing with people who are in a â€Å"counseling or any type of therapeutic† setting, you have to be able to handle this situation with privacy and always try to treat your client with respect and never discuss them outside of the clinical setting. The HIPAA laws are to protect the patient’s rights so that they cannot be given just out to anybody. The only people that can have access to the medical files would be someone that is involved in the care of or needs to have access to them for anyone that is billing, or the insurance company that is paying for the services that the client is receiving. What areas of the JSBMHA did HIPAA compliance impact, When Jim and Betty were working for that company, they had unfortunately talked about specific clients and some relatives of the clients had heard the conversation and also their relatives names. They had immediately gone to the company and talked with their supervisor so he could deal with the employees that had broken the privacy laws. JSBMHA, is an certified agency that works with clients that have psychological, mental, and addictions for drugs. THE clients need to be able to feel safe, knowing that their conversations are not talked about elsewhere, unless it is related to their recovery. What Jim and Betty did at the cafeteria is inexcusable. You never know who is going to be listening in on your conversation when you are in a public place. If the wrong people hear what is being said, you never know what the ramifications could be. If a woman is at a domestic violence shelter and you are talking about what she went through with her ex-boyfriend , not knowing the whole time that the ex is in the booth right behind you. Right there you have just put that women in a dangerous position. Without thinking you have just put that woman’s life in jeopardy. 3 I believe that because of their actions that JSBMHA should suspend both of them for at LEAST two weeks without pay. I believe with that type of punishment, maybe both of them will really think about what they did and why it was inappropriate. Maybe they should even write a paper on how their actions were wrong and also be able to see how they’re gossiping put that woman in jeopardy. They need to really understand how their actions can affect other people. ‘

Data Warehousing :: essays research papers

The company implementing the Data warehouse is Sears Roebuck & Co. Sears is in the retailing business selling ever thing from under garments to washing machines. The main reason why the company is implementing the DW is because it wants to maximize the use of its information in its credit data warehouse. The prior application processed steps sequentially one processor at a time thus not using the multiprocessor capabilities of its machine to process the huge quantity of data. Mining of data was too slow and could only be performed once a year, which produced inaccurate data for the Marketing department. Due to the meticulous process, other units of the company were barred from the data warehouse, which also cause dilemmas. Sears went to a consultant to solve the problem. The package chosen was the Torrent Systems Orchestrate Package. The reason for choosing this package is because the package fit the needs of the company to a match. It allows the company to convert its application from sequential to parallel by partitioning the data across the processors and running multiple, parallel instances of the application. The benefits from implementing the Orchestrate package is, the new program would examine account attributes like purchasing behavior and payment history, causing more lucrative targeted marketing campaigns and boosting sales and card balances. It will allow the job to be done at a fraction of the time of the prior system. In addition the new system increased the number of credit card accounts from 16 million to 22 million. Overall, from doing this case study I have learned that data mining and data warehouse’s are very important to all organizations especially very large organizations. DW’s help to further organize and use the data of the company to its fullest, which allows companies to operate more smoothly and efficiently. I gained a greater knowledge of DW’s and how they work and are used by organizations.

African american case study Essay

David Brown is a 35-year-old African American residing in Brooklyn, New York. He is tall, lean, and professional-looking. He has short curly hair and neatly shaved face. He has been a successful bank manager for five years and his colleagues look up to him with much respect and admiration. But whatever he has now are the fruits of his hardwork and perseverance. David was born on the 25th of February 1972. During this time, racial discrimination was still prolific and their family experienced hard times. They live in the â€Å"ghetto† where drugs, gang wars, and poverty were rampant. Growing up in such an environment was never easy for David and he found it hard to trust his peers because he did not want to get involved in their vices. His mother had to stay at home to attend to his other siblings while his father had two jobs to support their family’s needs. Considering their situation, David was inspired to study hard and he wanted to give his family a better life. After graduating from highschool, he was determined to pursue college and was fortunate enough to be accepted in a known university to study Banking and Finance. College was the biggest challenge for him because first of all, his father had to support him and he had to work as a grocery clerk in a convenient store at night to make ends meet. Due to the color of his skin, David faced discrimination issues. His classmates regarded him as inferior and some even ridiculed him and his peers who were also African Americans. Whenever he felt down and mocked, he would play basketball because this was his outlet in releasing tension and built-up emotions. However, he did not lose his focus and he graduated with flying colors. It took him a while to land on a job since some of the employers were discriminating. After several months, he got a job offer from a banking company as a clerk. He was very happy because he was starting to fulfill his dreams of helping his family. He worked hard and loved this noble profession and eventually, his efforts were seen by his superiors. His determination and dedication made him climb the corporate ladder. Many got insecure and envious when he was promoted to his present managerial position. Some even doubted his leadership skills and capabilities in performing his duties but, David proved them wrong. In time, he was able to win their support and respect.   David is currently at the prime of his life – he is successful and has given his family a better life. He does not have any intimate relationships because he prioritizes his family and work. Considering Erikson’s psychosocial theory of development, David has gone through young adulthood and it appears that his lack of initiative to form intimate relationships lead to isolation. However, he could only be delayed in establishing intimate relationships with the opposite sex because of prioritization of other more important things. As of now, he is in his middle adulthood and it is most likely that he is experiencing psychological stagnation since he is not showing productivity in helping the next generation achieve their goals. Taking Freud’s theory of psychosexual development into consideration, David appears to be fixated in the latency stage because of his self-fulfilling goals and the direction of his energy towards productive activities like work. Though he knows how to socialize, most of his friends are males and he exhibits lack of interest in engaging in close relationships with women (Santrock, 2002). At this point, he should have been married like most people of his age and rearing a family of his own; but as mentioned earlier, David may only be delayed in fulfilling such human functions. References: Santrock, J.W. (2002). Life-Span Development (8th ed.) New York: McGraw-Hill