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.
To start off this module, take a look at the following video for a relatively comprehensive overview of several concepts from this module. This

video is a little longer than previous videos you’ve watched for this class, but covers very useful information such as vertical and horizontal

integration strategies as well as conglomerate (diversification) strategy:
Holden, P. (2011). Business integration – vertical, horizontal and conglomerate. St. Lawrence College. https://www.youtube.com/watch?v=gG9xNElFzRk

Now delve a little deeper into this subject with the following chapter that will reinforce what you’ve learned in the video plus some important

additional concepts such as transaction costs:
Flat World Education http://saylordotorg.github.io/text_principles-of-managerial-economics/s05-economics-of-organization.html

https://saylordotorg.github.io/text_mastering-strategic-management/s12-selecting-corporate-level-stra.html

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