(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

Production and the Vertical Chain

As a conclusion, each branch works for its best interest, thereby losing overall company profitability.
             Influence costs entail lobbying for resources which may lead to biased information and destructive competition within the firm; internal divisions may lobby each other, raising the cost of production. Using independent firms keeps these issues distinct.
             On the other hand, there are advantages for firms that choose the 'make' strategy over outsourcing. Using the 'make' strategy means that all information with regard to the production of the product is handled in-house with direct responsibility and control over security and privacy of information. This would prove a benefit to firms in sustaining their competitive advantage because information leakage could prove fatal for firms who are unable to respond to their rivals duplicating and improving their technology. .
             Contracting and transactions cost are also reasons why companies choose the 'make' strategy. Transaction cost refers to the cost of organizing and transacting exchanges between partners. It evaluates how trading partners safeguard themselves from the risks associated with exchange relationships. The key characteristics of transaction cost economics are relationship- specific asset and the fundamental transformation concepts of holdup, rent and quasi rent. Relationship-specific investment is a set of assets or investments made specifically for the improvement of efficiency of the given transaction which cannot be redeployed to another transaction without incurring cost or affecting the productivity of the asset. Assets can be relationship-specific for many reasons such as site, physical, human and dedicated assets. Site specificity is the process wherein parties are in a 'cheek-by-jowl' relationship to minimize inventory and transportation costs and assets are highly immobile in a particular place.


Essays Related to Production and the Vertical Chain

1. The Supply Chain Process

Horizontal integration is one tool used by entities along this supply chain to expand market penetration and establish growth. ... Seagate has taken communication to its highest level by creating visibility at every level of its supply chain. ... This visibility has been bred through heavy investments in IT infrastructure, employee, supplier, subcontractor, and customer education, capital expenditures on research and development, and even bucking supply chain trends through vertical integration with subcontractors. ... (Cohen & Roussel, 2005) This investment has created a fully automated produ...

  • Word Count: 821
  • Approx Pages: 3
  • Has Bibliography
  • Grade Level: Undergraduate

2. Supply Chain

The movement toward virtual corporations and supply chains has progressed much more than anticipated. ... Supply Chain Management (SCM) continues to grow in both need and usage. ... Let's begin by looking at the Global Supply Chain. ... Virtually every diagram depicting the current supply chain process is linear (Chorafas: 51). ... Supply Chain Optimization The necessity of trying to optimize the Supply Chain is simply a requisite to the entire management and growth process. ...

  • Word Count: 3751
  • Approx Pages: 15
  • Has Bibliography
  • Grade Level: Undergraduate

3. Value-Chain Analysis and Customer Needs

B Vertical integration " involves taking control of one or more additional stages of the external value chain and making them internal. ... B Strategic alliances with suppliers " involves more closely managing external suppliers as if they were part of the company's internal value chain, but without actually owning them (for example, Toyota's Kaizen system, wherein key suppliers are located very near a factory and receive all kinds of help and training from Toyota to ensure smooth and efficient production). ... This chain has nearly 30 significant elements, starting wi...

  • Word Count: 4100
  • Approx Pages: 16
  • Has Bibliography
  • Grade Level: Undergraduate

4. Case Analysis Of Tyson Foods

Poultry production is a major component of agricultural production throughout the world with poultry serving as a source of high-quality protein for the world population. ... Although poultry producers sell direct to large grocery and restaurant chains such as Winn Dixie and McDonald's, nevertheless they use food wholesalers to reach smaller chains and sole proprietorships. ... Smaller firms tend to have less extensive vertical integration while the larger firms maintain a high degree of vertical integration. ... Highly automated processing facilities have emerged to set new industry...

  • Word Count: 1396
  • Approx Pages: 6
  • Grade Level: Undergraduate

5. Tools Of The Trade

By AT&T and TCI merging, their expansion strategy could be described as either horizontal or vertical. Horizontal integration, which AT&T used, is based on growth via acquisition on one or more similar firms operating at the same stage of the production-marketing chain. ... Vertical integration involves acquiring firms either to supply acquiring firms with inputs- backward integration, or are customers for firm outputs - forward integration....

  • Word Count: 293
  • Approx Pages: 1
  • Grade Level: Undergraduate

6. ERP

ERP is often implemented in companies together with process-oriented organization or Supply Chain Management (SCM). ... IT-systems of this kind allow managers from all departments to look vertically and horizontally across the organization to see what others are accomplishing or not. ... Now, business needs to move that information across a supply chain. ... He can enter ERP systems directly; dynamically control the process of the order implement and production manufacture. ... They are also the information link for an enterprise in the supply chain. ...

  • Word Count: 2315
  • Approx Pages: 9
  • Has Bibliography
  • Grade Level: Undergraduate

7. Marketing - The Zara Store of Melbourne, Australia

They have a narrower vertical scope than Zara. Because Zara owns much production and stores that is advantageous when adapting to demand quickly (Carmen, 2009). GAP and H&M own their stores but outsource production. ... Marketing Issues Zara's prices are very low for European consumers due to its integrated supply chain and onshore production facilities throughout Melbourne. ... Zara's business model is characterized by a highly integrated vertical structure and strict supply chain management. ...

  • Word Count: 1484
  • Approx Pages: 6
  • Has Bibliography
  • Grade Level: Undergraduate

8. Global Wine Industry

There are two systems for naming wine, vertical and appellion. ... Vertical, name based on the type of grape used to produce wine. ... What are the key activities involved in the production and distribution of wine? ... Supplier- Related Value Chains: Makers of wine bottles, label, equipment, and grape's growers. Company Value Chain: preparation of land in order to grow grapes, drying process, extraction of juice, aging, and labeling. ...

  • Word Count: 2004
  • Approx Pages: 8
  • Grade Level: High School

9. Business Policies and Strategies of BP - Questions and Responses

They made shortcuts in safety measures in order to keep the cost of production low. ... This was also put on the back burner to maximize profits and keep production cost low. ... The suppliers force over BP is eliminated because this company practices vertical integration. ... Plus this company has its own chain of retailers across the globe. ... But with a chain of retailers across the globe, this company still brings in major profits....

  • Word Count: 721
  • Approx Pages: 3
  • Has Bibliography
  • Grade Level: High School

Got a writing question? Ask our professional writer!
Submit My Question