Degree Of Internal Transfers

The degree of integration is the proportion of the resources transferred internally, and fully integrated firms transfer almost 100 percent of particular services or material in-house. In Figure 8-2 firms A and B are "fully integrated"; firm C is "taper integrated".

Form Of Ownership Arrangement

Figure 8-2 does not illustrate different forms of ownership. But the form of integrated ownership indicates the proportion of a firm's equity invested in a vertically linked venture, and in some environments contracts, franchises, joint ventures, or other forms of quasi-integration can be good alternatives to wholly-owned ventures.


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Corporate-level Strategy
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