scholarly journals Impact of Vertical Integration

2021 ◽  
Author(s):  
Erin H. Luke

Vertical integration is a powerful, and complex business strategy that when used under the rightconditions can positively impact an organization. A company’s strategists need to understand whatdimensions of integration to use, and the best time to use it. De Beers is a company with a controversialhistory of being an anti-competitive monopoly. By strategizing into a vertical integrated company Debeers has added value to its company by not only targeting the retail, and industrial market, but also theI.T. industry. Forward and backward integration has helped organizations like De Beers maintain controlover its inputs and outputs. Rather than just buying all diamond mines, and stock piling the material inorder to control the prices, De Beers has embraced change by focusing on new emerging industries.Through vertical strategy and new ownership De Beers is turning its company around in a verycompetitive luxury industry. Organizations should be aware of the costs of vertical integration whenexploring its potential. Bureaucratic costs, and companies becoming too large and inflexible under certainenvironments can become a problem. Vertical integration is a powerful strategy, but it must always beunder scrutiny, and redesigned when the external and internal environment deems change necessary.

2019 ◽  
Vol 10 (2) ◽  
pp. 223-234
Author(s):  
Ghia Ghaida Kanita ◽  
Resa Respati

Abstract.  Dynamic ability is a form of knowledge that can create values for the company both with the results of innovation and transformation from input to output in order to produce sustainable competitive advantage. The purpose of this research is to know about what factors influence dynamic capabilities of a company or organization. In this study, more than that, what affects the dynamic capabilities in industries in Bandung. Creative industry is a collection of information related to information and information. Creative industry is an economic activity that produces added value from the art side. The creative arts industry is already boooming in Indonesia. Therefore, the author wants to learn about the dynamic capabilities that exist in the creative arts industry in Bandung. Things to look for are components such as environmental sensing capabilities, change capabilities and upgrades, technological flexibility capabilities, and organizational flexibility. Putri Pamayang Dance Studio is a dance studio in Bandung. This study uses a research-based design or Design Based Research (DBR). Based on the results of the study, the steps adopted by the Putri Pamayang Dance Studio are related to variation strategies, market testing strategies, development and development, backward integration, horizontal integration.Keywords. dynamic capabilities, sustainable competitive, environmental sensing capabilities, change and renewal capabilities, flexibility technology capabilities, and organizational flexibility.


2019 ◽  
Vol 65 (2) ◽  
pp. 21-29
Author(s):  
Ana Jurić ◽  
Aleksandra Zupanc ◽  
Tjaša Štrukelj

AbstractThe central aim of the article is company governance, i.e., researching governance of a company that does not want to be only financially successful but also direct its governance toward socially responsible governance. The article begins with the definition of “theoretical backgrounds,” in which social responsibility in regard to company governance improvement in quality is explained. The article then focuses on the measurement of the quality of company governance; in the research, the selected tool chosen to evaluate the governance of the chosen company regarding social responsibility, i.e., SEECGAN index, is used. Further, the case study of a Slovenian public limited liability company is used. One of the important research findings is the recognition that the addressed part of the SEECGAN index needs to be innovated and further developed. Additional questions for the completion of the index used presents the added value of the article. This article has two limitations: 1) it focuses only on the tool chosen to evaluate the governance of the chosen company regarding social responsibility; 2) the case study is based on publicly accessible data.


Ciencia Unemi ◽  
2015 ◽  
Vol 8 (16) ◽  
pp. 87
Author(s):  
Guido Asencio Gallardo

El concepto de Responsabilidad Social Empresarial (RSE) refleja hoy en día el resurgimiento de valores en la sociedad, además manifiesta la necesidad que tienen las empresas de involucrarse en la sociedad civil a través de sus iniciativas, no tan sólo como generadoras de proyectos aislados que las conecten con su entorno, sino integrándolas como parte de su estrategia empresarial. En este ensayo se presenta la herramienta Balance Social (BS), un tema que tiene sus orígenes en la RSE, modelo adoptado en Chile en el año 1975, desde la primera experiencia registrada en la Asociación Chilena de Seguridad (ACHS). La herramienta toma en cuenta los aspectos sociales que contempla una entidad hacia adentro, los denominados agentes internos, es decir los trabajadores en sus distintos niveles de la organización. Se darán a conocer modelos de Balance Social, por medio de análisis de su diseño e influencia a tomar en consideración y el tipo de empresa en que se aplique. El aporte de este ensayo, es dejar manifiesto que el Balance Social transformaría los tradicionales indicadores sociales que presentan algunas entidades en insumos reales, y a su vez serviría como una herramienta práctica para representar la RSE de una empresa. AbstractThe concept of Corporate Social Responsibility (CSR) today reflects the resurgence of values in society, also expressed the need for companies to engage in civil society through initiatives, not just as isolated projects that generate connection them to their environment but integrating them as part of their business strategy. In this test the Social Balance (BS) tool, an issue that has its origins in the CSR model adopted in Chile in 1975, since the first recorded experience in the Chilean Safety Association (ACHS) presented. The tool takes into account the social aspects covered entity inward-called insiders, i.e., workers at different levels of the organization. They will be released models of Social Balance, through design analysis and influence to consider and type of business in which it applied. The contribution of this paper is to leave clear that the Social Balance transforms traditional social indicators that have some real input entities, and in turn serve as a practical tool to represent a company CSR.


Author(s):  
Radoslav Škapa

Proper return policy provides an additional value for customers and therefore it can be a beneficial instrument in business strategy of a company. However, its efficiency is harmed due to the return fraud that increases the total cost for reprocessing of returned products. The article contributes to the discussion of factors that stimulate and discourage the return fraud in the retail by suggesting a model, which is proposed on the basis of the theory of planned behavior. Path analysis was conducted with the data of 207 respondents to test the validity of the model.


2021 ◽  
Vol 6 (1) ◽  
pp. 395
Author(s):  
Rorim Panday ◽  
Dovina Navanti

The fashion industry that is gamis in Indonesia is growing rapidly because the majority of the population is Moslem. Elzatta is a company that does business on Moslem clothing, one of its products is the gamis. The company is experiencing problems with stockpiling in warehouses, because of models that were not sold, as well as outdated models. With the accumulation of products in warehouses in 2017 and 2018, many products will be damaged. For this reason, the company runs a buy one get one business strategy and sells products at low prices. As a result, the company suffered a substantial loss. For this reason, it is necessary to evaluate the inventory management that has been carried out using the EOQ model. For 2019, it is necessary to plan the number of products to be sold and apply the EOQ model. The results of evaluations in 2017 and 2018, by using EOQ the company could save 64.78% for 2017 and 63.40% for 2018. Whereas for 2019, after forecasting the number of sales using the seasonal model, sales projections are similar to the number of sales in the previous years, so that the number of products needed for a single order is 1364 pcs.


2003 ◽  
Vol 3 (1) ◽  
Author(s):  
M. G. Matlhape

Two phenomena are having a profound effect on management and industry in the 21st century. The first one is the increasing rate and depth of competition locally, regionally, and globally, and the consequent increase in focus on achieving competitiveness by companies. The second phenomenon is the increasing appreciation of the importance of employees in assisting the company to gain a competitive advantage over its competitors. Employee Assistance Programmes have been used as part of the business strategy to enhance employee functioning, loyalty, and performance in organisations around the world for a good part of the 20th century. In South Africa this service did not gain much momentum until the 1980. Despite the growth of EAP in South Africa, however, in most cases it still remains on the periphery of real business activities and is often regarded as a "nice to have" rather than as a business imperative. The location of EAP within a company is very important in determining its impact within the organisation. Because of EAPs capacity to impact on both individual employees and the organisation as its primary client, it has potential to make a great impact in organisations' business processes, where these interface with individual output and wellbeing. A service-profit-chain model was introduced as a link between employee satisfaction and company profitability. This article gives an in-depth focus on EAP and the important role it can play in achieving employee satisfaction.


2018 ◽  
Vol 8 (1) ◽  
pp. 62-70
Author(s):  
Zuhardi Perdana Putra ◽  
Reswita Reswita Reswita ◽  
Irnad Irnad Irnad

ABSTRACTAgroindustry is an agriculture based industry that has an important role in economic growth in Indonesia. One of the agricultural subsector is horticultural crops, namely onion. The need for onion consumption in Indonesia has always increased. In the Bengkulu city there is a company engaged in the industry of fried onions are "UD. Safari Bawang Goreng". This research is done with consideration of the company has long standing, big enough company, and produce about 336 kg/day. Fried onions are processed products that are processed from the main source of raw material is onion. The processed onion comes from Brebes Java. To know the process can be done by the method of observation, and participation. Processed red onion products produce added value that can be analyzed by Hayami method. The process of onion processing into fried onions consists of several stages, namely the provision of raw materials, onion gaebage, sorting, slicing onion, affixing onion with flour, frying, pressing, packaging. The process of onion treatment into fried onions is called value added. The added value obtained in this study amounted to Rp 9549.65 / Kg BB.Keywords: Fried Onion, Hayami Method, Added Value.


2018 ◽  
Vol 6 (1) ◽  
pp. 52-62
Author(s):  
Nofrizal Nofrizal ◽  
Prama Widayat

This research aims to formulate and select BMT Al- Ittihad Rumbai strategy to face the changing of business environment both from internal environment such as organization resources, finance, member and external  business such as competitor, economy, politics and others. This research method used Analysis of EFAS, IFAS, IE Matrix, SWOT-8K Matrix, SPACE Matrix and TWOS Matrix. our hope from this research it can assist BMT Al-Ittihad in formulating and selecting strategies for the sustainability of BMT Al-Ittihad in the future. The sample in this research is manager and leader of BMT Al-Ittihad Rumbai Pekanbaru. The result of this research shows that the position of BMT Al-Ittihad using IE Matrix, SWOT-8K Matrix and SPACE Matrix is in growth position, stabilization and aggressive. The choice of strategy after using TWOS Matrix is market penetration, market development, vertical integration, horizontal integration, and stabilization  


2021 ◽  
Vol 12 (2) ◽  
pp. 104-112
Author(s):  
Annita Mahmudah

Trading company is a company that purely only sells products whoseproducts have been provided by suppliers or manufacturers with the aimof creating added value. Trading company financial reports must bereported annually. The company has the goal of increasing profits,therefore company leaders try to manage earnings. To achieve this,researchers conducted mini research on good corporate government andearning management. The result of this research is that GCG (GoodCorporate Governance) does not have a significant effect on earningmanagement


2021 ◽  
Vol 8 (2) ◽  
Author(s):  
Siwi Nur Khotimah ◽  
Rita Indah Mustikowati ◽  
Ati Retna Sari

This study aims to examine and explain the effect of company size and leverage on firm value with profitability as a moderating variable in Real Estate and Property companies listed on the Indonesia Stock Exchange in the period 2016-2018. This type of research is explanatory research, testing classical assumptions, and analyzed using a moderated regression analysis, and using the t test. The number of samples is 32 companies, and the sampling method used is purposive sampling. This research variable consists of company size and leverage as an independent variable, company value as the dependent variable, and profitability as a moderating variable. The analysis showed that partially company size and leverage had no significant effect on firm value, profitability had a negative effect on firm value and profitability weakened the effect of company size on firm value and profitability strengthened the effect of leverage on firm value. In this study, it can provide implications for a company to consider factors of company size, leverage, and profitability, and can also be used as a reference by other companies in business strategy, understand aspects of the industry they are involved in, and pay more attention to the development of the environment that can affect the company's business so that it can increase the value of the company.


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