Part 1-  APA Format-  (This is only for 2 students)  100 Words each- replying to the students assignment. Use direct questions.  When responding to each other with this DQ, please go beyond giving

Background

Economics of Organization and Strategy

Required Reading

To start off this module, take a look at the following video for a relatively comprehensive overview of several concepts from this module.  This video is a little longer than previous videos you’ve watched for this class, but covers very useful information such as vertical and horizontal integration strategies as well as conglomerate (diversification) strategy:

Holden, P. (2011). Business integration - vertical, horizontal and conglomerate. St. Lawrence College. https://www.youtube.com/watch?v=gG9xNElFzRk

Now delve a little deeper into this subject with the following chapter that will reinforce what you’ve learned in the video plus some important additional concepts such as transaction costs:

Stengel, D. (2012).  Economics of Organization. Managerial Economics Principles.  Flat World Education http://saylordotorg.github.io/text_principles-of-managerial-economics/s05-economics-of-organization.html

Now read the following chapter for more detail on the concepts of vertical integration and horizontal integration.  Also covered in this chapter is diversification strategy, also known as conglomerate strategy.  Pay attention to the discussion of related versus unrelated diversification:

Ketchon, D. & Short, J. (2012). Chapter 8: Selecting corporate-level strategies.  Strategic Management: Evaluation and Execution. Flat World Education. https://saylordotorg.github.io/text_mastering-strategic-management/s12-selecting-corporate-level-stra.html

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