Consider Gold-Bernstein's Integration roadmap (p. 18). Construct two business examples, one that clearly calls for a strategic integration effort and the other that calls for tactical integration efforts. What are some of the factors that you believe should influence a firm to take a strategic or tactical approach to integration?
- Consider the following firms and industries. Which are most likely to need to implement an integration strategy? Would the firm pursue a strategic or tactical approach? Given your general knowledge of business, what are some of the business drivers that are most likely in play in these businesses? What are some of the Key Performance Indicators that you think would apply to these cases?
- XYZ, Inc. is a medium sized firm in the health care industry. They sell medical supplies (such as wheel chairs, diabetic supplies and the like) to a broad cross section of the population in Southeast Michigan. Most clients have insurance (either private or government provided). The firm is concerned with obtaining maximum reimbursement for the products and services it provides.
- ABC, Inc. is a mortgage broker. Their job is to connect potential home buyers with loan sources. Many of their loans go through a small number of lending sources, although the firm is constantly looking for new loan sources. ABC's key concern is quick processing of new loans.
- Thomas' Auto Parts is a tier 3 supplier in the auto sector. The firm supplies parts under contract to tier 2 suppliers. Typically, Thomas'has 5 or 6 contracts at a time and these contracts typically run for three to five years. Thomas' key concerns lie in on-time delivery, product cost and quality.
- Global Pharmacy Inc. is a major developer and marketer of prescription drugs (both generic and non-generic). The firm operates world wide. Their key concern is how they conduct business with their large number of drug wholesalers - in terms of fulfillment of orders and maintaining proper inventory level.