同济大学经济与管理学院.ppt

同济大学经济与管理学院 俞秀宝 Forward integration Gain control over sales (distributors and retailers) Backward integration Gain control over suppliers Or extends a firm’s range of activities backward into sources of suppliers /or forward toward end users. * Vertical Integration - definition 第九十四页，共一百五十六页。 同济大学经济与管理学院 俞秀宝 Vertical integration - Go for it in a big way and become heavily integrated to maximise benefits - or outsource most non-core, non mission-critical activities so you have minimum expenditure, maximum flexibility (and/or consider strategic alliances) - do not be half hearted between these extremes 第九十五页，共一百五十六页。 同济大学经济与管理学院 俞秀宝 Pros and cons of vertical integration For Against Cost savings Requires different skills Improved quality Increases dependency on Protect resources industry Increase profits Increases capital req’ts Improve access to Raises exit barriers customers Creates balance problems Reduces flexibility 第九十六页，共一百五十六页。 同济大学经济与管理学院 俞秀宝 * Outsourcing De-integration and outsourcing involves withdrawing from certain stages/ Activities in the value chain system and relying on outside vendors to Supply the needed products, support services, or functional activities. Facts: Companies have begun outsourcing activities formerly performed In-house and concentrated their attentions more on a narrower portion Of the value chain. 第九十七页，共一百五十六页。 同济大学经济与管理学院 俞秀宝 When go outsourcing -an activity be performed better or more cheaply by outside specialists -the activity is not crucial to the firm’s ability to achieve SCA -Reduces company’s risk exposure to changing technology -improve org. flexibility, cut cycle time, decision making and coordination cost -allows a company to concentrate on its core business and do what it does best 第九十八页，共一百五十六页。 同济大学经济与管理学院 俞秀宝 Labor cost in China Labor cost in textile industry (2002) Nation cost/h (US$) compared with US (%) Japan 20.7 185 US 13 100 Taiwan 5.9 4