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The Integration of Firms

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					The Integration of Firms
Expansion of firms
Firms may expand by
 internal growth
 combining with other firms --- integration
Horizontal Integration
   firms producing the same product or at the
    same stage of production combine together
Horizontal Integration
   firms producing the same product or at the
    same stage of production combine together
Horizontal Integration
   firms producing the same product or at the
    same stage of production combine together
Horizontal Integration
   firms producing the same product or at the
    same stage of production combine together
Horizontal Integration
   firms producing the same product or at the
    same stage of production combine together
Horizontal Integration
   firms producing the same product or at the
    same stage of production combine together
Vertical Integration
   firms operating at
    different stages of
    production for a
    certain good
    combine to form a
    larger firm
Vertical Integration
   firms operating at
    different stages of
    production for a
    certain good
    combine to form a
    larger firm
Vertical Integration
   firms operating at
    different stages of
    production for a
    certain good
    combine to form a
    larger firm
Vertical Integration
   firms operating at
    different stages of
    production for a
    certain good
    combine to form a
    larger firm
Vertical Integration
   firms operating at
    different stages of
    production for a
    certain good
    combine to form a
    larger firm
Lateral Integration
   firms producing related, but not competitive
    products combine to form a single firm
Lateral Integration
   firms producing related, but not competitive
    products combine to form a single firm
Lateral Integration
   firms producing related, but not competitive
    products combine to form a single firm
Lateral Integration
   firms producing related, but not competitive
    products combine to form a single firm
Lateral Integration
   firms producing related, but not competitive
    products combine to form a single firm
Conglomerate Integration
   Firms in entirely
    different lines of
    production combine
    together
Conglomerate Integration
   Firms in entirely
    different lines of
    production combine
    together
Conglomerate Integration
   Firms in entirely
    different lines of
    production combine
    together
Conglomerate Integration
   Firms in entirely
    different lines of
    production combine
    together
Conglomerate Integration
   Firms in entirely
    different lines of
    production combine
    together
Conglomerate Integration
   Firms in entirely
    different lines of
    production combine
    together
Why do firms combine?
 Can you suggest some motives for
 integration of firms?
Motives for integration
   To enjoy economies of          Horizontal
    scale                           integration
   To have more flexibility
                                   Vertical
    in the use of resources
                                    integration
   To build up brand name
   To ensure supply of
                                   Lateral
    materials or market outlets     integration
   To diversify risks             Conglomerate
   To expand market share          integration
Motives for integration
   To enjoy economies of          Horizontal
    scale                           integration
   To have more flexibility
                                   Vertical
    in the use of resources
                                    integration
   To build up brand name
   To ensure supply of
                                   Lateral
    materials or market outlets     integration
   To diversify risks             Conglomerate
   To expand market share          integration
Motives for integration
   To enjoy economies of          Horizontal
    scale                           integration
   To have more flexibility
                                   Vertical
    in the use of resources
                                    integration
   To build up brand name
   To ensure supply of
                                   Lateral
    materials or market outlets     integration
   To diversify risks             Conglomerate
   To expand market share          integration
Motives for integration
   To enjoy economies of          Horizontal
    scale                           integration
   To have more flexibility
                                   Vertical
    in the use of resources
                                    integration
   To build up brand name
   To ensure supply of
                                   Lateral
    materials or market outlets     integration
   To diversify risks             Conglomerate
   To expand market share          integration
Motives for integration
   To enjoy economies of          Horizontal
    scale                           integration
   To have more flexibility
                                   Vertical
    in the use of resources
                                    integration
   To build up brand name
   To ensure supply of
                                   Lateral
    materials or market outlets     integration
   To diversify risks             Conglomerate
   To expand market share          integration
         Humanities Unit
Curriculum Development Institute

				
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posted:9/27/2012
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