Key Terms
Integration - Business integration is a strategy whose goal is to synchronize information technology (IT) and business cultures and objectives and align technology with business strategy and goals. Business integration reflects how IT is being absorbed as a function of business.
Merger - A merger is an agreement that unites two existing companies into one new company. There are several types of mergers and also several reasons why companies complete mergers. Mergers and acquisitions are commonly done to expand a company's reach, expand into new segments, or gain market share.
Takeover - In business, a takeover is the purchase of one company (the target) by another (the acquirer, or bidder). In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.
Vertical Integration - In microeconomics and management, vertical integration is an arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need.
Horizontal Integration - Horizontal integration is the process of a company increasing production of goods or services at the same part of the supply chain. A company may do this via internal expansion, acquisition or merger. The process can lead to monopoly if a company captures the vast majority of the market for that product or service.
Conglomerate Integration - conglomerate integration. A process whereby a business acquires a substantial number of other unrelated businesses in order to form a large and highly diversified corporation.