Homework Case Study Example | Topics and Well Written Essays - 750 words - 1

Homework - Case Study ExampleAn example of backward plumb integration is when a company producing sugar buys the can farm from which they have been acquiring their primary raw product. In the short term it will solve render problems since it can guarantee itself a constant supply of sugarcane should in that location be a cane shortage, the sugar producer is protected from having to compete with others for the hold in cane.On the other hand, it takes control of the cane producing process and safeguards against substandard or poor quality products. reluctant integration is a particularly beneficial strategy under the following circumstances when the supplies serving the unfluctuating are not reliable. On the other hand, when the suppliers in the industry are few but there are many purchasers, and its an industry that keeps rapidly expanding and is characterized with unstable prices of inputs. However, before committing to this line of business the buyer firm must ensure it has s ufficient capabilities and resources to manage the new business. The oil industry presents several examples of vertical integration with firms such as BP, while it retrospectively used to outsource for exploration and focus on production, it gradually evolved its production functions and today it handles both functions and this has resulted in considerable success and profitability.Social corporate accountability is the factor that marks the line between a caring and responsible corporate and a vulturous and exploitative one (Porter & Kramer, 2006). While admitting that the primary objective of any business is to make profit, this should not be achieved at the expense of the lives and livelihoods of communities and staff members. If this were the fictitious character, then business ethics would be redundant, in the above case study, the firms is faced with a serious dilemma, on one hand there is a predator smell on capitalizing on the firms weakness which in part stem from its t endency to