Discussion Board 3 – International Business.
A. Integration can be defined as the process of establishing synchrony within the business operations within an organization for optimum results. Integration can also refer to the merger of two or more units of business of either the same parent company or different entities (Bakker and Helmink, 2000). Integration is however particularly common in large businesses that usually have strong and complex structures within their organizations. Business integration can be attributed to the financial might of large organizations seeking to buy out firms that might prove to be tough competition in the market at the end.
Integration has several advantages to the business entity. The larger business is able to gain economies of scale in that, it is able to reduce its cost of production (Rebstock, Fengel and Paulheim, 2008). This can be attributed to the financial might, such that the business is able to exercise purchasing advantage, as it is able to purchase its raw materials in large quantities and thus save on costs that would have been incurred during purchase of goods in smaller quantities. The new business entity can incorporate new strategies that help it gain a competitive advantage against its competitors such as adopting new technologies in developing new products that are appealing to the consumers. After the integration of the lesser business entity into the larger entity, the business is able to exercise. It might be that there are few or no competitors in the market (Cunha, Cortes and Putnik, 2008). This makes the new large entity a monopoly. Being a monopoly opens new doors to the business, in that the business is able to control or even