and motion detection. Under Tim Cook, Apple is moving in a more innovative direction, launching multiple new projects, enhancing the company’s platform to enable more people to build business. Apple’s horizontal integration strategy across devices and channels and vertical integration strategy from chip design to software and retail is creating a truly sustainable competitive advantage that is hard to replicate. For that reason alone, its valuation skyrocketed. This is a brilliant example of classic
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1 INTRODUCTION PROTON BEHARD is a Malaysian car manufacturing company that was established by the government in 1983. The objective behind the creation of the car company was to aid the attainment of the country’s goal of becoming an industrialized nation through a fortified car manufacturing industries. The country also had the intention of acquiring improved technology and industrial skills through the new manufacturing field which in turn is believed will fortify the status of Malaysia as an
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American Apparel American Apparel, founded in 1997, began its business strategy differently than most other companies. The founder, Dov Charney, believed in the philosophy of being a vertically integrated company. This means they manufacture, produce and sell their own products. Sales were slowly decreasing over the years because of poor fiscal management. To remain the largest U.S. apparel store they needed to tighten the reins on their financial management. Synopsis of the Case American
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its portfolios in a related field, it will either embark on a vertical or horizontal integration. Quite often an organisation will decide to take over a stage within the value network that is adjacent to their own. They thereby take over the responsibilities that input into the business. This is called backward integration. Others decide to take control of the next stage of their supply chain; this is referred to as forward integration. Furthermore, other organisations may decide to either develop
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into two categories: ¤ Related diversification, including vertical integration (backward and forward), and horizontal diversification. Here, there is some connection between the activities of the businesses. ¤ Unrelated (conglomerate) diversification, where there is no commonality between the different businesses. Looking first at related diversification. Backward integration is where a business takes over a supplier; forward integration
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INTRODUCTION Figure Clothing is family-owned fashion house based in Manchester. Established over thirty years ago, the company currently employs fewer than 15 people. Figure Clothing origins were as a retail wholesaler selling and buying stock. The company transformed itself into a fashion house 4 years ago, with a vision to become a fashion house producing high quality women‟s fashion. The UK fashion industry is a multi-million pound industry with Manchester considered the main hub of UK fashion
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with an average of 92,000 employees, 44,000 shell service stations around the world, over 30 refineries and chemical plants that produce 2% of the world’s oil and 3% of the world’s gas at 3.2 million barrels produced daily (About Shell). Vertical Integration According to their website Royal Dutch Shell’s main mission is to “engage efficiently, responsibly and profitably in oil, oil products, gas, chemicals and other selected businesses and to participate in the search for and development of other
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by-products. I don’t really care for Perdue’s ground turkey and turkey patties, as well as their specialty products such as heart, gizzards and chicken liver. 2. Describe the production process at the chicken processing facility. Perdue Farms is a fully vertical integrated company which allows complete control of every step in the process. This type of hands on control allows for quick changes within the manufacturing process. Perdue’s manufacturing process is broken down into two separate production stages;
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Company uses vertical integration because they want to be in control of all the process undertaken till the distribution to their end users. Being in control of it gives them the assurance that the qualities they want their product to have will be attained. In this way, if there would be dissatisfaction on part of the customer or while on the process, they know they have no other party to blame but could immediately take a look through their value chain and see which part needs reasonable adjustments
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subject has grown in kind. boundary of the firm can be What is often lost in the hype surrounding adjusted. Considers various other means such as conglomeration the concept, however, is that outsourcing is and horizontal and vertical just one way in which the boundary of the integration. Focuses on firm can be adjusted in response to changing outsourcing and its place in this economic pressures. Indeed, any history of bigger picture and discusses the history of outsourcing. Outlines the concept should
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