ECONOMICS OF ORGANIZATION AND INDUSTRY

Economics of Organization and Industry

For this final SLP, imagine that your business has become successful and you are now considering expanding the scope of your company. Carefully review all of the required background materials, and then write a three-page paper answering the following questions. Make sure to cite at least one of the required readings for each of your answers:

1. If you were to engage in horizontal integration, which of your direct competitors would you decide to acquire? Overall, do you think horizontal integration is the best long-run plan for your business if it is successful?
2. Do you think your business should vertically integrate over time? Should you engage in backwards vertical integration, forward vertical integration, both, neither? Explain your reasoning.
3. How about diversification/conglomerate strategy? Any advantage to diversifying your business? Discuss unrelated diversification and related diversification and whether or not these strategies might be good for your business. Explain your reasoning.

SLP Assignment Expectations

• Answer the assignment questions directly.
• Stay focused on the precise assignment questions. Do not go off on tangents or devote a lot of space to summarizing general background materials.
• Make sure to use reliable and credible sources as your references. Articles published in established newspapers or business journals/magazines are preferred. If you find articles on the Internet, make sure they are from a credible source.
• Reference your sources of information with both a bibliography and in-text citations. See the Student Guide to Writing a High-Quality Academic Paper, including pages 11- 14 on in-text citations. Another resource is the “Writing Style Guide,” which is found under “My Resources” in the TLC Portal.

Answer preview

Integration influences the way various operations are run. It changes the market structure. Horizontal integration occurs between companies at the same point. If all the bike shop conducted a smooth integration a monopoly business would be established and an oligopoly if only a few competitors remain after integration. Vertical integration, on the other hand, involves gaining control over a production or distribution line to reduce market uncertainties and costs. ..