Growth of Businesses - Integration

There are several ways in which businesses can join together...


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HORIZONTAL INTEGRATION

Two businesses at the same stage of production

e.g. 2 tablemakers join together

FORWARD VERTICAL INTEGRATION

A business takes over or merges with a businesses at the next stage of production

e.g. table maker joins with a shop

BACKWARD VERTICAL INTEGRATION

A business takes over or merges with a business at the previous stage of production

e.g. a table maker joins with a tree cutter

ACTION

Which type of integration are each of the following examples:

a Lloyds TSB and Halifax bank merge
b A brewer takes over an off license
c A brewer takes over a hop grower


SMART THINKING

D Why might a table maker join with a) another table maker b) a shop c) a tree cutter?

http://tutor2u.net/economics/gcse/revision_notes/firms_integration.htm