Question

How does vertical interrogation and diversification impact a company's organizational structure and activity.

Answer 1

Vertical integration and diversification allows a company to make changes to its value chain to provide the company with options to transform their raw material into finished product. This make the use of change to the organization's structure and functions performed in the sense that it involves making change to how the raw material is processed, how the components are managed in order to create the intermediate goods, making changes to the final assembly in order to improve the manufacturing process and essentially, sales and marketing that needs to be performed after the goods have been produced. There are different levels of changes that need to be made to the organization in order to achieve efficiency with the process and there is also the fact that organizations sometimes fail to realize the real reason for implementation of vertical integration and in such cases, the results are unsatisfactory and might cause a loss in terms of customer satisfaction.

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