What are some advantages and disadvantages of horizontal integration?
Horizontal integration is when a business such as a bakery buys another bakery to increase their capacity (the number of loaves of bread they can supply to customers) Advantages of horizontal integrationQuick way for a business to expand without having to start a new factory from scratchCan lead to economies of scaleDisadvantage of horizontal integrationThe business can get too big too quickly causing problems with management of resourcesThis can lead to problems with communication and co-ordination as the newly bough business tries to fall in line with the existing companyMay have too many staff - may have doubles of staff e.g. sales managers so may lead to redundancyMay have sold machinery that needs replacingStaff may not adapt well to the change of management
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