State the types of integration, Financial Management

Assignment Help:

State the Types of integration

Types of integration

Horizontal

Target company has same operations, and is in the same industry as predator company. Greater economies of scale can be achieved. For example integration of two firms in exactly the same industry and at same stage of production, like Mars taking over or merging with Cadbury.

Backwards

vertical

Predator moves back down its supply chain, so consequently purchases its suppliers - to increase quality and have control of goods. For example a firm integrating backwards within the supply chain within its industry, with a supplier involved in a different stage of production, like Mars integrating with a coco plantation or a coco wholesaler.

Forward

vertical

Predator moves forward and purchases its customers (for example brewery buying a pub chain) - ensures control of pricing, market place etc. for example a firm integrating forwards within the supply chain within its industry, towards or closer to customer involved in a different stage of production, like Mars integrating with Thornton's retail shops.

Conglomerate

or lateral

integration

Predator wants companies in various industries, thus reducing risk by diversification. For example integrating two organisations which are involved in different products and markets, like Mars integrating with Next clothing stores.


Related Discussions:- State the types of integration

Treasury bills or t-bills, Treasury bills are the bills, the governme...

Treasury bills are the bills, the government issues with maturity period of one year or less than one year. Treasury bills are usually issued as discount securiti

Financial crisis , a)  Tonddu plc is expected to report record earnings of ...

a)  Tonddu plc is expected to report record earnings of £120m next year.  It has grown rapidly over the last few years, the growth has been achieved by maintaining a high level of

What are the main elements of capital budgeting decisions, What are the mai...

What are the main elements of capital budgeting decisions There are three elements of capital budgeting decisions (i) long-term assets and their composition (ii) business

Which ratios would a banker be most interested, Which ratios would a banker...

Which ratios would a banker be most interested in when considering whether to approve an application for a short-term business loan? Explain. Bankers and other lenders use liq

Explain the various types of l/c, Question 1 Describe briefly the various ...

Question 1 Describe briefly the various terms of payment available to an exporter and importer. Explain any one method in detail Question 2 A documentary letter of credit is

Advantages of budgetary control, ADVANTAGES OF BUDGETARY CONTROL 1. Pr...

ADVANTAGES OF BUDGETARY CONTROL 1. Profits are maximizes. 2. It makes easy the controlling of activities. 3. Effective co-ordination is made achievable. 4. Executive

Balance sheets, Balance Sheets   Peony Ltd. ...

Balance Sheets   Peony Ltd. Aster Ltd. Assets:     Cash $     62,500 $

State the concept of overtrading, State the concept of Overtrading Over...

State the concept of Overtrading Overtrading can result in insolvency which means companies have severe cash flow problems. This means that a thriving company, which may look v

Financial control, Internal capital rationing is used by firms for exercisi...

Internal capital rationing is used by firms for exercising financial control. How does a firm achieve this?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd