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What is the meaning of Design in the Integrated firm?
Integration is the process of combining various aspects together into a single comprehensive system. When we talk about the integrated firm, it can mean different things. Sometimes the integration may be a new coordination arrangement among all departments, procedures, and systems in an organization. Sometimes integrated firm is a resultant of two or more firms combining as a result of merger. And sometimes amalgamations also lead to the creation of integrated firm.
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The various designs in the integrated firm
There can be an economic design model based on horizontal integration and the other based on vertical integration. Horizontal integration is adopted to increase the production of goods or to render more and more services to the customers. A company can adopt policies like mergers, amalgamations, acquisitions, expansion,etc. for it.
Vertical integration is the step where the organization is expanding its activities on the vertical level in the path of production. Examples can be like owning the supply resources, handling the distributorship all by itself, etc.Sometimes it is also known as a move where the company plans to completely take charge of its own supply chain. This strategy is very helpful in reducing turnaround time, reducing various associated costs, reduction in transportation expenditure, etc.
A point to consider
Based on the specific requirements a firm may decide either to opt for vertical integration or for horizontal integration or for both the design models at the same time. If you are having any confusion on this topic, then it’s the right time that you should opt for design in the integrated firm assignment help.
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