answersLogoWhite

0

A merger of a firm with a supplier, known as backward vertical integration, occurs when a company acquires or merges with a supplier to gain better control over its supply chain. This strategy can lead to cost savings, improved efficiency, and enhanced product quality by reducing dependency on external suppliers. By integrating operations, the firm can streamline production processes and potentially increase its competitive advantage in the market.

User Avatar

AnswerBot

3mo ago

What else can I help you with?

Continue Learning about Other Business

How do you call a merger in which one firm buys another which does not want to be taken over?

Hostile take over!


What is the Merger of companies at different stages of production?

The merger of companies at different stages of production is known as a vertical merger. This type of merger occurs when a company combines with another company that operates at a different level of the supply chain, such as a supplier or a distributor. The primary goal of a vertical merger is to increase efficiency, reduce costs, and improve the overall control of the production process by streamlining operations and minimizing supply chain disruptions. By integrating these different stages, companies can enhance their competitive advantage and better respond to market demands.


What is partial vertical integration?

Partial vertical integration is the action in which a firm aquires control in either an upstream supplier or a downstream buyer with a share ratio of less than 100 % in the integrated firm.


A merger unites firms at different stages of related businesses?

A merger that unites firms at different stages of related businesses is known as a vertical merger. This type of merger typically involves a company acquiring another that operates at a different level of the supply chain, such as a manufacturer merging with a supplier or distributor. Vertical mergers can enhance efficiency, reduce costs, and improve supply chain management by streamlining operations and consolidating resources. Additionally, they can provide firms with greater control over the production process and access to new markets.


What is merger reserve?

WHat is a merger reserve?

Related Questions

Joining of one firm with another to form a single firm?

merger


What is the combination of two or more companies into single firm called?

A merger


How do you call a merger in which one firm buys another which does not want to be taken over?

Hostile take over!


What is the meaning of the phrase vertical integration?

Vertical Integration is a firm from business that deals with buying a supplier or a buyer of a firms products. For example if a firm with an oil refinery bought an oilfield, it would be upstream vertical integration - they bought a supplier. If that same firm bought a gas station it would be downstream vertical integration. Buying an unrelated firm is diversification.


How do you find an old IRA account?

Are you looking for a IRA account that you had at a brokerage firm years ago? A lot of firms have merger and changed names. If you know the name of the old firm, then you can call the firm that company became.


Under what conditions will the government approve a merger?

When a company joins with another company or companies to form a single firm.


When was the law firm Dickinson Dees first formed?

The law firm Dickinson Dees was first formed in 1975 by a merger of some other law firms. The law firm is headquartered in Newcastle upon Thames in England.


What are the reasons for different sizes of firm?

Size of market Capital employed Organisation or structure of firm Barriers to entry No. Of employees Market share Rate of integrations it means merger and acquisition


Trade credit may be used to finance a major part of the firm's working capital when?

the firm extends less liberal credit terms than the supplier.


Why do mergers and takeover occur?

Merger or takeover helps an ailing organisation to come out of the impasse. Merger or takeover with an organisation with sound healps helps the ailing firm with adequate capital outflow required for dailing running of business.


What mega-merger transformed the insurance industry in 1998?

In 1998, the $82.5 billion merger of Citicorp, a major commercial bank, and Travelers Group, Inc., an insurance firm, sent ripples through the U.S. insurance industry.


What is the Merger of companies at different stages of production?

The merger of companies at different stages of production is known as a vertical merger. This type of merger occurs when a company combines with another company that operates at a different level of the supply chain, such as a supplier or a distributor. The primary goal of a vertical merger is to increase efficiency, reduce costs, and improve the overall control of the production process by streamlining operations and minimizing supply chain disruptions. By integrating these different stages, companies can enhance their competitive advantage and better respond to market demands.