Question

Identify and briefly explain what is meant by each of the following terms:

a. horizontal scope
b. vertical scope
c. scope of the firm

Answer 1

a. Horizontal scope— The horizontal scope refers to the range of products and services which is being offered by the organisation. The horizontal scope is considered one of the important dimension of the firm which strategically designs the product range and the competitive advantage of the organisation.

b. Vertical scope: Vertical integration or vertical scope is considered that strategy in which organisation maintains good relation with its suppliers and different departments of the organistaion in the vertical manner. The company tries to gain competitive advantage by investing time in the value chain. The current competencies, advantages and abilities the firm is attaining because of the value chain if the organisation by the vertical integration if various department should be maintained and sustained.

c. Scope : Scope of the firm could deifned as the number if various industrial, segments, economical activities and the products line an organsiation is engaged with at a partcular point of time. What valuable aspects of the market the organisation is being attached to and what operations in the organisation running to take over the estimated and engaged opportunities.