CONGLOMERATE
Conglomerate integration occasionally also comes up in form of merger, acquisition or takeover. It involves the coming together of two or more companies in different industries, i.e. the business not related with each other or sometimes not within same industry. The integration defers to that of horizontally (producing the same or competing products) nor vertically (standing towards each other in the relationship of supplier and buyer or potential supplier and buyer) but possibly combining all types. Companies that involve in conglomerate integration engaged in different line of business which in some occasion not related to each other and expands beyond two or more industries. While some of these companies takes name like - & …show more content…
Additionally, in a bid to decrease their own packaging cost while providing a valuable product to the Nigerian market as a whole, FMN takes 70% stake in BAGCO, one of the largest suppliers of industrial sacks to many industrial and agro- allied companies in Nigeria. It is noteworthy, that FMN runs profitably, a series of support or auxiliary businesses such as Golden Transport, which operates more than 500 trucks and the Apapa Bulk Terminal, which handles over 3 million metric tons (MT) of bulk cargo per annum. Such businesses, in addition to being viable and profitable in their own right, give FMN a tremendous competitive advantage in terms of agility, efficiency, and service delivery. In addition to all these ventures, Flour Mills of Nigeria’s interest in becoming the nation’s dominant food business company is furthered by entities operating in agriculture, livestock feed and pasta manufacturing. THIS IS THE STORY OF JACK OF ALL TRADE MASTER OF …show more content…
The benefits of backward integration may include:-
i. Grantee of timely supply of raw material: Being able to produce its needed raw materials, the company will be able to have uninterrupted raw materials supply. This will eliminate possible interruption in the production cycle and minimize possible variances when comparing production cost with budgeted. Ability to substantially control the supply of its raw material through backward integration will enable a company itself or through its subsidiaries produce quantity raw materials needed for production without or with tolerable delay is an advantage of backward integration. ii. Reduction in the cost of production. Production of raw material by itself or through subsidiaries will help a company in reducing it cost of production through reduction in cost of materials used. This will eliminate suppliers profit on supply of raw materials thereby saving part of expected fund outflow from the
Conglomerate integration occasionally also comes up in form of merger, acquisition or takeover. It involves the coming together of two or more companies in different industries, i.e. the business not related with each other or sometimes not within same industry. The integration defers to that of horizontally (producing the same or competing products) nor vertically (standing towards each other in the relationship of supplier and buyer or potential supplier and buyer) but possibly combining all types. Companies that involve in conglomerate integration engaged in different line of business which in some occasion not related to each other and expands beyond two or more industries. While some of these companies takes name like - & …show more content…
Additionally, in a bid to decrease their own packaging cost while providing a valuable product to the Nigerian market as a whole, FMN takes 70% stake in BAGCO, one of the largest suppliers of industrial sacks to many industrial and agro- allied companies in Nigeria. It is noteworthy, that FMN runs profitably, a series of support or auxiliary businesses such as Golden Transport, which operates more than 500 trucks and the Apapa Bulk Terminal, which handles over 3 million metric tons (MT) of bulk cargo per annum. Such businesses, in addition to being viable and profitable in their own right, give FMN a tremendous competitive advantage in terms of agility, efficiency, and service delivery. In addition to all these ventures, Flour Mills of Nigeria’s interest in becoming the nation’s dominant food business company is furthered by entities operating in agriculture, livestock feed and pasta manufacturing. THIS IS THE STORY OF JACK OF ALL TRADE MASTER OF …show more content…
The benefits of backward integration may include:-
i. Grantee of timely supply of raw material: Being able to produce its needed raw materials, the company will be able to have uninterrupted raw materials supply. This will eliminate possible interruption in the production cycle and minimize possible variances when comparing production cost with budgeted. Ability to substantially control the supply of its raw material through backward integration will enable a company itself or through its subsidiaries produce quantity raw materials needed for production without or with tolerable delay is an advantage of backward integration. ii. Reduction in the cost of production. Production of raw material by itself or through subsidiaries will help a company in reducing it cost of production through reduction in cost of materials used. This will eliminate suppliers profit on supply of raw materials thereby saving part of expected fund outflow from the