INTEGRATING THE ORGNIZATION

Integrating the Organization

[Name of the Institute]

Abstract: Business integration requires the alignment of strategies, objectives, processes, systems and the information technology infrastructure and the international coordination of functional make use of information technology. The alignment requires coordination and a set of methods layout to represent different aspects of business to meet certain purposes. The architectures business provides a number of these methods allow the realization of a business model integrated. This integration-through architecture business- provides the base to facilitate the implementation of strategic initiatives. Business integration is a set of services and solutions that enable applications to communicate business processes and disparate and incompatible, thereby facilitating access to information in a consistent and homogeneous. The application of integration techniques can overcome the boundaries between departments, systems, applications or locations, maximizing the ability of the organization in the use of existing resources.

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.

DISCUSSION

Business integration refers to the alignment of strategies, objectives, processes, systems, technology infrastructure and the firms operations with the changing market and the customer needs. Organizations all over the world use different strategies and models of business integration in accordance with the nature of their business and market. Some of the widely implemented strategies include vertical Integration, horizontal integration and conglomerate structures. They have their own set of advantages and drawbacks. Numerous factors must be taken into account by the management when deciding upon the appropriate strategy of integration.

Vertical Integration

Vertical integration is the process of replacing market transactions by internal transactions, resulting in a planned economy in which suppliers enjoys a monopoly and consumers lack alternative choices. Vertical integration is an expression for the portion of value added that is produced within the framework of shared ownership. If a product is sold, its price probably comprises the input costs of materials, components and systems. If the price of buying this input is high, integration is low. But if the major share of sales value is produced internally in one's organization, integration is ...