Q:

What is an example of horizontal integration?

A:

Quick Answer

An example of horizontal integration is the purchase of Kmart by Sears. Horizontal integration occurs when two companies at the same level in the supply chain merge.

Continue Reading
What is an example of horizontal integration?
Credit: Fanatic Studio Collection Mix: Subjects Getty Images

Full Answer

Horizontal integration offers a range of benefits including increased marketing power and a reduction of costs through economies of scale. As a company expands, it is able to achieve economies of scale by having a greater revenue base to spread its overhead costs.

Vertical integration is when a company purchases a company that is in a different level of the supply chain. Kmart purchasing one of the brands it sells is an example of vertical integration.

Learn more about Managing a Business

Related Questions

  • Q:

    What is the difference between CRM and e-CRM?

    A:

    Whereas customer relationship management is the set of principles, practices and guidelines that an organization follows when interacting with its customers, electronic customer relationship management is the integration of Internet channels into the overall CRM strategy. The goal of e-CRM is to provide consistent customer service across all online channels.

    Full Answer >
    Filed Under:
  • Q:

    What is an example of a balanced scorecard?

    A:

    An example of a balanced scorecard, which is a strategic development tool to measure expectations and performance in a business, include a mission and vision statement along with a strategy map, performance measures and targets and initiatives. Detailed balanced scorecard examples are found online from websites, such as Balanced Scorecard, and include examples from government agencies, nonprofit organizations and commercial companies. Balanced scorecards (BSC) vary in format and details according to the company's objectives.

    Full Answer >
    Filed Under:
  • Q:

    What is an example of a business continuity plan?

    A:

    An example of a business continuity plan is one that includes a study of business impact, project implementation, strategy creation, and examination of risk and methods of working with the necessary public authorities in the event of a business disaster. Business continuity plans can differ with large, medium and small businesses and can be created with the help of templates, consultants and checklists.

    Full Answer >
    Filed Under:
  • Q:

    What is an example of a utilitarian organization?

    A:

    An example of a utilitarian organization would be a business where a person works for income, as stated by Pearson Sociology. These organizations provide money in exchange for membership and fulfilling the requirements of that membership, such as performing labor for a job.

    Full Answer >
    Filed Under:

Explore