Write a 3 to 5 page paper (750 to 1200 words, not including the cover page and reference page) in APA format in response to the prompts below
Please use this APA Sample provided in Unit 1 to complete your assignment. This assignment will also assess the Institutional Learning Outcome of Critical Thinking. Visit the LIRN and find peer reviewed journal articles that support your positions in the responses.
Write your paper in an essay format.
a. Substitute the example firm from the Chapter 6 Problem Set 6.12 on page 184 with the company you selected in Unit 1, and explain why you would or why you would not recommend vertical integration.
b. Examine the corporate Web site for your selected company and explain how you would characterize their corporate strategy. Are they following a strategy of limited diversification, related diversification, or unrelated diversification? [From Chapter 7, Problem Set 7.6 on page 214].
This is the Problem Set mentioned above:
Problem: 6-12. In each of the following situations, would you recommend vertical integration or no vertical integration? Explain.
- Firm A needs a new and unique technology for its product line. No substitute technologies are available. Should Firm A make this technology or buy it?
- Firm I has been selling its products through a distributor for some time. It has become the market share leader. Unfortunately, this distributor has not been able to keep up with the evolving technology and customers are complaining. No alternative distributors are available. Should Firm I keep its current distributor, or should it begin distribution on its own?
- Firm Alpha has manufactured its own products for years. Recently, however, one of these products has become more and more like a commodity. Several firms are now able to manufacture this product at the same price and quality as Firm Alpha. However, they do not have Firm Alpha’s brand name in the marketplace. Should Firm Alpha continue to manufacture this product, or should it outsource it to one of these other firms?
- Firm I is convinced that a certain class of technologies holds real economic potential. However, it does not know, for sure, which particular version of this technology is going to dominate the market. There are eight competing versions of this technology currently, but ultimately only one will dominate the market. Should Firm I invest in all eight of these technologies itself? Should it invest in just one of these technologies? Should it partner with other firms that are investing in these different technologies?
- 7-6. Visit the corporate Web sites for the following firms. How would you characterize the corporate strategies of these companies? Are they following a strategy of limited diversification, related diversification, or unrelated diversification?
- General Motors
- Entertainment Arts
- Berkshire Hathaway
Solution PreviewVertical integration is the merger of firms at different production or distribution stages in the similar industries. Companies are said to have undertaken forward integration when they acquire their distribution chains. On the other hand, they are said to have done backward integration when…