Question

1. What is the difference between reverse integration and vertical integration?

2. Visit the website of an organization dealing with sport for persons with disabilities. Summarize what you learn.

3. Provide a brief overview of the Special Olympics (state and local Special Olympics program). What is the role of a professional working in the Special Olympics?

Answer 1

Reverse integration is defined as a merger integration (horizondal integration), where the buyer adapts to the target. Adaptations can happen in e.g. organizational structure, processes, leadership or culture.

vertical integration :- In microeconomics and management, vertical integration is an arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need.

Differences between reverse integration and vertical integration

The following are the major differences between horizontal and vertical integration:

1. Horizontal Integration occurs between two firms whose product and production level are same. Vertical Integration is an integration of two firms that operates in different stages of the manufacturing process.
2. Horizontal Integration aims at increasing the size of business and scale of production, whereas Vertical Integration focuses on strengthening and smoothening its production-distribution process.
3. The greatest advantage of horizontal integration is that it eliminates competition between firms, which ultimately extends the market share of the company. Conversely, Vertical Integration results in lowering the cost of production and wastage.
4. Horizontal Integration only brings synergy, but not self-sufficiency while Vertical Integration helps the company gain synergy with self-sufficiency.
5. Horizontal Integration helps to acquire control over the market, but Vertical Integration is a strategy used for gaining control over the whole industry.