Business unit 9

• Vertical integration


  Where a business moves up the supply chain through the sectors
• Forward vertical integration


  • Where a manufacturing business takes over a retail business
• Capital intensive production


  • Workforce has been replaced by machinery, moving from labor towards capital
• 20% increase in output


  15% increase in unit costs (diseconomies of scale)
• Greiner's model of growth


  Leadership is the first stage after the creativity evolution
• Enterprise resource planning (ERP)


  Integrated management of main business processes in real time using software and technology