Economics of Organization and Strategy

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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:

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Module 4 - SLP ECONOMICS OF ORGANIZATION AND STRATEGY 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.

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DoctorDickens
School: Boston College

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Running head: ECONOMICS OF ORGANIZATION AND STRATEGY

Economics of Organization and Strategy
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ECONOMICS OF ORGANIZATION AND STRATEGY

2

If I were to engage in horizontal integration, the direct competitor that I would acquire is the Asics
Company. Reason being, in horizontal integration the business being acquired is the one that
operates at the same level of value chain in a similar or different industry (Stock & Seliger, 2016).
In this regard, since my business operates at prices ranging from 250 to 450 to 600 for the attire
and equipment respectively, this implies that my company operates at the same level of value chain
with Asics Company which operates at prices ranging from 270-320 and 500-550 for attire and
equipment respectively.
Horizontal strategy can increase manpower and create economies of scale over suppliers and
distributers because it is a competitive strategy (Stock & Seliger, 2016). In addition, it enables
businesses to enter new markets and expand their markets because it increases product
differen...

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