Executive Summary

This paper discusses the business integration ina wholistic view. The processes of integration and differentiation of organizational forms - is the objective manifestation of the processes of self-organizing systems, features, and their adaptation to the changing conditions of existence of the external world. Based on the general principles of self-organizing systems can be argued that the change in organizational forms will grow at the same time increasing the diversity of ownership and the increasing pace of change and constraints on the part of the environment. The world system as a whole develops and improves, it always produces new organizational structure, communication between them is continuously compounded. However, the global system is becoming more organized as a single entity: the constituent elements of an increasingly interdependent and interrelated. Those companies that fail to fit into this new system, incapable of co-evolution - burn out and leave the battlefield in the global market. Thus, the system dictates the behavior of its subsystems and the requirements for their development. On the example of the constant change of a variety of organizational forms of modern enterprise, we can again see the infinite motion and variability, as implemented by the law of unity and diversity, there are processes of self-organization of complex organizational systems, each of which is incorporated into another, even more complicated.

Competitive external environment and the fight for the world market forced some organizations to consolidate disparate resources, to join together to accomplish goals. The growth of corporate structures, one of the most important trends of modern development economics. National and transnational corporations constitute a framework of world economic system, increase the stability of international cooperation and the possibility of macroeconomic regulation. Table of Contents

Executive Summary1

Introduction3

Research Methodology3

Results4

Vertical Integration4

Benefits4

Drawbacks5

Horizontal Integration5

Benefits6

Drawbacks6

Conglomerate Integration7

Integration with Suppliers7

Principles for improving the relationship7

Conclusion8



Business Integration

Introduction

Integrating the organizations is one of the most powerful organizational tools of management. Its use is being studied in many financial disciplines, ranging from institutional economics, but, nevertheless, the impact of the merger in practice is low. Most of the transactions (according to various estimates from 61% to 70%) did not bring the desired fiscal effect. This is due to a high degree of specificity of each instrument of integration and frequent neglect of the scientific principles of integration in the pursuit of short-term benefits . The Western sources confirm the effectiveness of this tool and suggest that well-designed and carefully planned integration of the transaction in recent years with more than cover the failure of previous "waves" of mergers and acquisitions. In retrospect, the medium-term (from 1993 to 2002). Company, active use of integration tools, have shown extraordinary effectiveness, measured as the return per unit of invested capital, rather than companies, who preferred a strategy of harmonious development. In our country also can be distinguished company surely has taken the path of integration development.

Research Methodology

The technique in which the qualitative and quantitative techniques are used collectively for data collection purpose is called mixed research. Mixed research method is the third most important ...