Mgec40 Notes Essay

- Used business strategy called vertical integration, which a company would control every stage of industrial process, from mining the raw material to transporting to product.

The manufacturing definition is defined as the user measured processing speed of a machine expressed as total output in a unit period under normal operating conditions (Throughput, 2010). The World English dictionary defines throughput as the quantity of raw material on information processed or communicated in a

Vertical integration is a concept in which a company develops or acquires production units for outputs which are

Vertical integration is when one firm joins with another at a different stage of the same production process. Forward Vertical is when the other firm is at a later stage and Backward Vertical is when the other firm is at an earlier stage. Vertical integration as a whole allows for a firm to control key stages of the production process; guarantees access to a market; and gains control of supplies. Companies such as Zara and American Apparel are vertically integrated, especially at key stages of

First, there is economic infrastructure which is described as the basic facilities and services which directly benefit the process of production and distribution

Vertical integration- a company controlled all parts of production from raw mats to the finished goods

Mass production used machines to help performed tasks that someone who would have the specific skills could at a quicker pace. This helped since now factory owners can hire non skilled workers to do a skilled workers job which in result caused more products to be made.

Vertical integration is a business growth strategy for economics of scale. It is typified by one firm engaged in different parts of production example; growing raw materials, manufacturing, transporting, marketing, and/or retailing to expand business in existing market for the firm. It can function in two directions both forward integration and backward integration.

Starting of reading this article, I was completely lost and wanted to quit. Vertical integration seemed too big of a concept to wrap my head around and the article had so many stats and figures I was going crazy. After dissecting the article parts by part and figuring out what vertical integration meant, the research started to make sense. To start off what the research talks about lets define vertical integrated. According to Adelman, it states that “a firm is vertically integrated whenever it ‘transmits from one of its departments to another good or service which could, without major adaptation, be sold in the market.’”. Ultimately a company is vertically integrated when “firms integrates activities in the value chain to produce its own inputs and/or takes care of its own

new products that made people's’ lives easier. Electricity was on the rise, and Edison was able to capitalize on it. Edison’s direct current systems were the only kind available, he raked in millions

A company creates or acquires production units for outputs which are either competitive or complementary.

The scientific approach required several major principles in its application to management: 1st – develops a science for each operation to replace opinion and rule-of-thumb. 2nd

Backward integration is a type of vertical integration in which a company takes control over its suppliers. It is a form of acquisition of the intermediary players involved in supplying the raw materials used in the production process of the firm. Raw materials, intermediate manufacturing and assembly are controlled by the firm whereas distribution to the end customer is done by a third party company. In this way, company increases production efficiency and gains a competitive advantage by lowering its production cost.

Scientific Management is a system that was originated from Fredrick W. Taylor (1911), which composite analysis of worker’s individual workflow and their labour productivity. The main purpose of this theory is to maximize efficiency within organisations to speed up the process of work in the minimum amount of time and cost incurred by the organisation (Ross 2010). Taylor believed that the most efficient way that work could be done was only when workers knew what they were doing and not merely working hard. (Mindtools)

d. a price that includes both the cost of the product plus transportation to the buyer