What is the difference between horizontal and vertical integration quizlet?

Vertical integration occurs when a company owns all parts of the industrial process. Horizontal integration occurs when a company grows by buying its competitors.

What is the difference between vertical and horizontal growth?

As a brief definition of them, vertical growth means focusing on one area and growth within the same industry while horizontal growth means that expanding the business in different areas.

What is vertical integration example?

Vertical integration occurs when the chocolate manufacturer (e.g. Mondelez) purchases a cocoa bean processor that is buying its beans from. As a result, the manufacturer can pay exactly the marginal cost – rather than profiting the processor. In turn, consumers may see lower prices in a competitive market place.

What is the difference between vertical and horizontal organization?

Most business organizations are set up either vertically or horizontally. A vertical, or centralized, business structure, for example, make decisions that flow from top to bottom. In contrast, in a horizontal, or decentralized structure, decisions are made at various levels.

What is the difference between horizontal and vertical analysis?

Given these descriptions, the main difference between vertical analysis and horizontal analysis is that vertical analysis is focused on the relationships between the numbers in a single reporting period, while horizontal analysis spans multiple reporting periods.

What is horizontal integration example?

Horizontal integration is where a business joins with another at the same stage of the supply chain. In other words, two businesses that are similar, become one company. For instance, a merger between Nike and Adidas would be an example of horizontal integration.

What is an example of vertical integration?

For instance, chocolate manufacturing has many stages of the supply chain. Two of which are the processing of the cocoa beans, and another to manufacture the final chocolate bar. Vertical integration occurs when the chocolate manufacturer (e.g. Mondelez) purchases a cocoa bean processor that is buying its beans from.

What is vertical merger example?

A vertical merger joins two companies that may not compete with each other, but exist in the same supply chain. An automobile company joining with a parts supplier would be an example of a vertical merger.

What is the difference between horizontal and vertical communication?

Horizontal: Communication established with people on the same hierarchical level within the company (or project) Vertical: Communication established with people who belong to a different hierarchical level.