(BQ) Part 2 book "Strategic management and competitive advantage" has contents: Vertical integration, corporate diversification, organizing to implement corporate diversification, strategic alliances, mergers and acquisitions, international strategies. | Find more at 62 15/09/14 7:41 PM Find more at Pa r t 3 181 Corporate Strategies 17/09/14 6:53 PM Find more at C ha pter 6 Learning Objec tives Vertical Integration After reading this chapter, you should be able to: 1. Define vertical integration, forward vertical integration, and backward vertical integration. 4. Discuss how vertical integration can create value by enabling a firm to retain its flexibility. 2. Discuss how vertical integration can create value by reducing the threat of opportunism. 5. Describe conditions under which vertical integration may be rare and costly to imitate. 3. Discuss how vertical integration can create value by enabling a firm to exploit its valuable, rare, and costlyto-imitate resources and capabilities. 6. Describe how the functional organization structure, management controls, and compensation policies are used to implement vertical integration. MyManagementLab® Improve Your Grade! Over 10 million students improved their results using the Pearson MyLabs. Visit for simulations, tutorials, and end-of-chapter problems. Outsourcing R esearch First it w as simple manufac turing—toys, dog f ood, and the like —that was outsourced to Asia. This was OK because even though manufacturing could be outsourced to China and India, the real value driver of the Western economy—services—could never be outsourced. Or at least that was what we thought. And then fir ms star ted outsourcing call c enters and tax pr eparation and tr avel planning and a host of other services to India and the Philippines. Anything that could be done on a phone or online, it seemed , could be done cheaper in A sia. Sometimes, the qualit y of the ser vice was compromised, but with tr aining and additional t echnological development, maybe even these problems c ould be addr essed. A nd this w as OK .
