Examine the pros and cons of vertical integration in terms of overall strategy.

Examine the pros and cons of vertical integration in terms of overall strategy.

Write a 2 page paper addressing the following elements in your paper:

• Examine the pros and cons of vertical integration in terms of overall strategy.

Include a title page and 3-5 references (not Wikipedia). Please adhere to the Publication Manual of the American Psychological Association (APA), (6th ed. 2nd printing) when writing and submitting assignments and papers.

Solution Preview

Pros and Cons of Vertical Integration in terms of Overall Strategy

There are several expansion strategies that can be adopted by an organization that wishes to expand its operations. Two of the major strategies include vertical integration and horizontal integration (Auerbach, 2016). Horizontal integration is where a firm acquires firms that are not within the same production sector or industry. Vertical integration is where a firm occupies others in the industry that are at different levels of the production chain. In such a merger or acquisition, the aim of the business that is expanding is to increase the efficiency while at the same time reducing the production costs that are associated with its operations. Through such an integration, the firm aims at creating sustainability and improving the profitability of the institution.

(620 words)