development‚ market development and diversification. ● Distinguish between different diversification strategies (related and conglomerate diversification) and evaluate diversification drivers. ● Assess the relative benefits of vertical integration and outsourcing. ● Analyse the ways in which a corporate parent can add or destroy value for its portfolio of business units. ● Analyse
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Johnson & Johnson: Planning Vertical Integration Team Synergy April 4‚ 2011 In a competitive market to which Johnson and Johnson operates‚ the smallest of errors can lead to consequences which can cut revenue. When large mistakes occur‚ millions of dollars are lost‚ and even worse‚ there is a loss of customer confidence. Johnson and Johnson has had numerous recalls in their consumer healthcare division recently‚ which rocked the organization’s once sound image‚ and diminished its profits. These
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Disney’s competitive strategy 1) Vertical integration 2) Strategic alliances 3) Corporate diversification 4) Creative content 5) International strategy Sometimes it’s not worth it to vertically integrate because then you hold all of the risk if an investment goes wrong. My first example of Disney’s strategy is actually the antithesis of vertical integration- outsourcing. The Year: 1991 The Goal: Produce of 3D films to reduce risk in case of failure in the industry The
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During the nineteenth companies grew in size and scope‚ absorbing transactions that had previously taken place across markets but by the end of the 90’s large industrial companies reduced their product scope focusing just on their core businesses and outsourcing the rest. Vertical integration is a corporate strategy which the company seeks to acquire control over own inputs or on their output or both. Expansion of activities downstream is referred to as forward integration‚ and expansion upstream
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A vertical integration involves the purchase of suppliers and “expanding the firm’s range of activities backward into sources of supply and/or forward towards end users.” Vertical integration defines when any company purchases or begins a company that it buys from or sells to and completes the business into personal. “Forward integration means it is integrating businesses toward the end customer; backward integration means it is integrating in the direction away from the customer. Backward vertical
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Vertical Integration vs Outsourcing of Zara Written by Mohd Rahman October 04‚ 2014 “The original business idea was very simple. Link customer demand to manufacturing‚ and link manufacturing to distribution. That is the idea we still live by” -- Jose Maria Castellano Rios‚ Inditex CEO. 1 Introduction to Zara Zara is an icon in the fashion world and largest international fashion designing and manufacturing company. Zara is the flagship chain store of Inditex Group owned by Spanish
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Virtual Private Networks Abstract With the increasing popularity of the Internet‚ new technologies have introduced to provide secure access to the resources from remote clients. Virtual Private Networks are becoming the most universal method for remote access. They enable service provider to take advantage of the power of Internet by providing a private tunnel through the public cloud to realize cost savings and productivity enhancements from remote access applications
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------------------------------------------------- A virtual company can be described as an organisation where the employees are geographically dispersed‚ work from home and use ICT to operate most aspects of the business. ------------------------------------------------- ------------------------------------------------- Discuss how emerging ICT technologies could be used to operate a virtual company. ------------------------------------------------- Include in your discussion the social and
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VPN Defined: So what is a good definition of Virtual Private Networking? Simply defined‚ a VPN is a “virtual” network that is kept private by “tunneling” private data through the underlying infrastructure of a public Internet. VPN technology provides a way of using public network infrastructures‚ such as the Internet‚ to provide private‚ secure access to applications and company resources to employees in remote or home offices‚ to business partners‚ and even to customers. A VPN is one or more
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Keiretsu and Chaebols Keiretsu - a group of closely related Japanese companies‚ often with interlocking ownership. Traditionally‚ there have been both horizontal and vertical keiretsu. Horizontal keiretsu center on a main bank and their companies span various industries. Vertical keiretsu center on a major manufacturer‚ like Toyota‚ and include its various suppliers and wholesalers. The keiretsu encourage its members to award contracts to sister companies and cooperate with each other for the
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