Management and the Organization Essay Example | Topics and Well Written Essays - 1500 words - 2

Management and the Organization - Essay ExampleThis paper also involves the discussion about the advantages that tumid integration wreaks for the personal line of credit.In order to under gestate the concept of vertical integration, let us first examine the contrary concept of horizontal integration. The term horizontal integration implies an system of rules which is consolidated or merged with some other (or other) businesses with similar activities and operations. An good example of horizontal integration is the merger of two small schools. Both the organization has almost similar operations, aims, and methods. The merger of such organizations may bring economies of scale, reduced overhead expenses and so on. On the other hand, vertical integration is the concept which describes the coordination or linkage of different units or stages of the merchandise summons (Heshmat 2001, p.101). An example of such integration may be the consolidation or coordination of suppliers, manuf acturers, and distributors in order to avoid the time overlap. This kind of coordination helps in maintaining the overall lifecycle and production process of a product. It helps in identifying the true worth, life, and cost of a product. Such coordination skillfully manages the production process without any delays in getting raw material from the supplier, unneeded delays in production or unavailability of the product when the distributor or seller needs it. Hence, companies integrate vertically in order to make their business more accurate in terms of availability, quality, and costs. Vertically integrated organizations are more reliable in terms of quality as, for instance in production businesses, the integration of suppliers, manufacturers, and distributors help in maintaining the quality standards using the same quality of material every time in the production process.In conclusion, we can say that the organization may choose between the structures of the organization dependin g on a number of factors. These factors include but are not limited to the size, resources, and nature of the business. Some businesses get hitched with vertical integration approach owing to the benefits this approach may bring. However, the decision of opting for vertical, horizontal or some other approach depends on the advantages it brings and the ability to stand the disadvantages associated with it. Managers moldiness think critically and weigh between the positive and negative outcomes of choosing any approach in the first place applying it practically. The short term and long term benefits and loses must be accounted for before adopting any approach. A vertical integration approach is helpful in reducing costs but is difficult to manage. Hence, there is a need to carefully consider each aspect of businesss operations which are affected by vertical integration approach before adopting it.