Intergration

• What is defined when two businesses merge or take over?

  The nature and type of integration
• What determines the type of integration in a merger or takeover?

  The activities of each business and their supply chain position
• What are the main types of integration in business?

  • Backward vertical integration
  • Conglomerate integration
  • Forward vertical integration
  • Horizontal integration
• What is backward vertical integration?

  Acquiring a business earlier in the supply chain
• Which example illustrates backward vertical integration?

  A retailer buys a wholesaler
• What is conglomerate integration?

  Combining firms in unrelated business activities
• What is forward vertical integration?

  Acquiring a business further up in the supply chain
• Which example illustrates forward vertical integration?

  A vehicle manufacturer buys a car parts distributor
• What is horizontal integration?

  Combining businesses in the same industry at the same production stage
• Which scenario exemplifies horizontal integration?

  Businesses in the same industry combine