1. Suppose a firm uses sugar in a product that you purchase. The firm vertically integrates by purchasing sugar farms that produce the sugar organically and in a way that makes it also sustainable for the environment. How would that influence your demand for that product? What other purpose than profitability might cause the firm to make this decision to vertically integrate in this way? 200 words min Vertical Integration in business

  1. Imagine a firm using sugar in the product they sell. Vertical integration is achieved by the firm purchasing sugar farms that grow sugar organically. This ensures that the sugar can be produced in a sustainable manner for the environment. This would impact your desire for the product. Is there any other reason than profit that might drive a company to decide to integrate vertically? 200 words min

    2. Discuss a specific skill that was taught in the course. Then, describe how this can help you in real-world situations. 200 words

    3. Instructions
    The final report you will be writing for Ruby Red Movie Theater is your assignment. You should address any concerns raised during the six preceding units.

    Detail the results of each study area. The economic theory you used to analyze the theater and make suggestions for improvement should inform your recommendations. It is essential that the theater has a complete understanding of its industry and the potential for profit.

    As needed, revise information from past assignments. Then combine everything to form a comprehensive and cohesive report. This means that your final report must be an original, updated version of what you did in previous assignments. You should not copy and paste past assignments in one piece of paper. Make sure you incorporate all suggestions made by your instructor in previous assignments.

    Unit VII will have new information. It will concentrate on information from this unit. This section will discuss why companies exist and the reasons for vertical integration. It also discusses how to apply this information to the Ruby Red Movie Theatre.

 

 

Vertical integration in the business

 

 

Answer

Vertical integration is when a company tries to increase its presence in the supply or manufacturing chain. To become more dependent upon other aspects of the manufacturing or supply chain, a company participates in vertical Integration (Ishida et al. 2020). In the example, sugar is incorporated into products that are sold by a company. A company purchases sugar farms from organic producers to vertically integrate. The goal is to build or acquire its own sugar supply and not outsource them. Vertical integration can result in lower transport costs and quicker turnaround times. It may also make logistics easier. Vertical integration allows the business to have direct control over all raw materials throughout manufacturing, which could result in higher quality products (Orsdemir, et al. 2019, 2019). Cont…

 

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