Process Of Vertical Integration Research Articles

An AcciMap approach to analyse the Chinese melamine milk scandal

PurposeThe 2008 Chinese melamine milk scandal resulted in six reported fatalities and affected around 300,000 children, of whom 54,000 were hospitalised. Previous studies have used linear approaches to examine the root causes of the melamine milk scandal.Design/methodology/approachIn the present study, we applied a systems approach to the melamine milk scandal to identify the complex systems-level failures across the supply chain leading to the incident and why food fraud incidents such as this occurred in the dairy sector. Additionally, systemic failures associated with food fraud vulnerability factors were considered (i.e. opportunities, motivation and control measures).Findings48 contributory factors of influence were identified and grouped across six sociotechnical levels across the Chinese dairy system, from government to equipment and surroundings. Lack of vertical integration (processes and communication) contributed to the failure. When viewed from a broader perspective, the melamine milk scandal can be linked to a series of human errors and organisational issues associated with government bodies, the dairy supply chain, individual organisations and management decisions and individual actions of staff or processes.Practical implicationsThis approach is of value to policymakers and the industry as it supports public health investigations of food fraud incidents and proactive food safety management.Originality/valueTo the best of our knowledge, this is the first study to analyse a food safety or fraud incident using the AcciMap approach and the food fraud vulnerability assessment (FFVA) technique. AcciMap analysis is applied to both unintentional and intentional aspects of the incident.

Yayıncılığın Yöndeşme ve Entegrasyon Üzerinden Reklam Bağlamında İncelenmesi

Breakthroughs in new communication technologies were influenced parties of convergence differently over time. In this study, new ideas created by these relevant technological developments were described through the user and publisher's side of view. The literature review was used to explore the main technical outputs for both traditional and new media environments. The study is important to understand the main effects of horizontal and vertical integration processes on the structures that use publishing activities involved in new online environments. Therefore, this study was aimed to review the possible connections that emerged through the effects of convergence and structures of integrations. The findings obtained from the literature review have shown that horizontal integration in the context of convergence has critical importance for online publishing media organizations. Another important finding is that notions such as banner blindness problem, freemium product or frequency capping, were emerged through convergence that enabled different interactions between user and publishing mechanism.

THE IMPORTANCE OF THE IMPLEMENTATION OF VERTICAL INTEGRATION PROCESSES IN THE DEVELOPMENT OF INNOVATIVE ACTIVITIES IN INDUSTRIAL ENTERPRISES

This article discusses the importance of the introduction of vertical integration processes in the development of innovative activities in industrial enterprises and the strengthening of the economic potential of the management system in the effective implementation of innovative activities in enterprises of the real sector of the economy.

THEORETICAL AND METHODOLOGICAL FUNDAMENTALS OF STATE ANTITRUST POLICY ANALYSIS

The article develops and deepens the theoretical and methodological principles of study of the state antitrust policy. Particular attention is paid to the definition clarity of antitrust policy in the context of its main objectives and goals, as well as to the determining the place of antitrust measures in the system of state competition policy. The main determinants of the firm's monopoly power, as well as the factors of its stability over time through the prism of the height of strategic and non-strategic barriers to market entry are described. The expediency of determining the dominant position and size of the firm by the size of its market share is substantiated. The economic preconditions of monopolization processes in an industrial market are singled out and analyzed. In particular the basic conditions of its functioning (the peculiarities of demand, dynamics and structure of production costs and technology), the law of returns to scale, avoidance of double marginalization in the process of vertical integration as the indicators for deepening and selection of antitrust policy tools. Emphasis is placed on the need for a thorough analysis of market volatility, as well as the means to achieve and maintain the monopoly power of the firm in the decision-making process of the relevant state regulatory authorities. The mechanisms of antitrust regulation in innovative and highly specialized types of markets, in particular the information technology market and the pharmaceutical industry, have been critically assessed. The paper also suggests the main directions for improving the antitrust policy of the state in the context of differentiated antitrust instruments application in different types of monopolized markets depending on the sources and stability of monopoly power, economic feasibility of its accumulation, the level of actual and potential monopolization, horizontal and vertical integration processes, influence on innovation. incentives to increase the competitiveness and growth of both market leaders and outsiders. Key words: antitrust policy, competition policy, industrial market, monopolized market, dominant firm, market concentration, market power, dominant position, market share.

Lack of Cross-Sector and Cross-Level Policy Coherence and Consistency Limits Urban Green Infrastructure Implementation in Malawi

The quality, quantity and accessibility of urban greenspaces and green infrastructure offer multiple benefits for city dwellers, the environment and urban sustainability. Green infrastructure provides a wide range of environmental, social, cultural, climate change adaptation, and mitigation benefits. However, for green infrastructure to do so, it needs to be integrated into national policy and city-planning strategies in ways that recognize its value and importance. Consequently, consistency and coherence between policy sectors and levels is essential. The more prominent urban green infrastructure is in national level policy, the easier it will be to ensure coherence and consistency between sectors and levels, as well as avoid national and local initiatives hindering each other's effectiveness. Integrating urban green infrastructure into planning processes should be a priority for all cities, but even more so for those in sub-Saharan Africa, which are undergoing rapid expansion. Here we focus on Malawi, one of the most rapidly urbanizing countries in sub-Saharan Africa. We collated and reviewed national-level and city-level policies and strategies, ranging from housing to transport to biodiversity, in order to determine, based on vertical and horizontal integration processes, whether urban greenspaces and green infrastructure have been incorporated into planning and management priorities. We found little evidence that urban greenspaces and green infrastructure are incorporated into national-level decision-making processes. In contrast, promoting and enhancing urban greenspace and green infrastructure was a priority in planning and strategy documents produced by the Lilongwe and Mzuzu City Councils. Better institutional coordination and policy coherence across national level sectors that affect urban greenspaces and green infrastructure is required if their multiple benefits are to be realized.

Happily Ever After?: Vertical and Horizontal Mergers in the US Media Industry

This article provides an economic analysis of recent vertical and horizontal mergers in the US industry for audio-visual media content, including the AT&T–Time Warner and the Disney– Fox mergers. Using a theory-driven approach, we examine economic effects of these types of mergers on market competition, focusing on digital media content distribution. In doing so, we address three research questions: (1) Is the current development of the industry with its recent merger activity concerning? (2) Would vertical or horizontal integration be more preferable for overall welfare and competition in this industry? (3) What are implications for antitrust policy? We conclude from our analysis that in the already highly horizontally concentrated US market for audio-visual content the process of further vertical integration creates concerns from a competition policy perspective. Moreover, even though horizontal concentration on some of the market stages may be anticompetitive as well, vertical integration is likely to be more harmful. As a consequence, we recommend a stricter approach to vertical merger control in this industry, as well as a more active abuse control against already vertically integrated media companies. competition policy, antitrust, industrial economics, digitization, media economics, institutional economics, industrial organization, mergers, vertical integration, horizontal integration

Capacity Management of Vertically Integrated Development of Intersectoral Co-Operation

In the conditions of a prolonged financial and economic crisis, limited volumes and forms of state support for agricultural production, maintaining structural imbalance and inequality of intersectoral exchange, the development of vertical integration processes is a priority in improving the competitiveness of the Russian agro-industrial complex. Vertically integrated corporations (VIC) have the potential to ensure the proportional development of the areas of territorial agribusiness, innovative modernization of production assets of agricultural producers, agro-processing structures. The article reveals the transformational potential of vertically integrated corporations (VIC) in improving intersectoral interaction in the agri-food complex (AIC) of Russia. Specific features of the development of integration processes in the agricultural sector of modern Russia are disclosed. The corporate mechanisms for the creation and functioning of vertically integrated structures in the territorial agricultural sector are systematized. The functional content and potential of the VIC in the structural modernization of the agro-industrial complex of Russia, in the development of the inter-branch exchange management system in the agro-industrial complex are disclosed.

Happily Ever After? – Vertical and Horizontal Mergers in the U.S. Media Industry

This paper provides an economic analysis of recent vertical and horizontal mergers in the U.S. industry for audiovisual media content, including the AT&T-Time Warner and the Disney-Fox mergers. Using a theory-driven approach, we examine economic effects of these types of mergers on market competition, focusing on digital media content distribution. In doing so, we address three research questions: (i) Is the current development of analyzing industry with its recent merger activity concerning? (ii) Would vertical or horizontal integration be more preferable for overall welfare and competition in this industry? (iii) What are implications for antitrust policy? We conclude from our analysis that in the already highly horizontally concentrated U.S. market for audiovisual content the process of further vertical integration creates concerns from a competition policy perspective. Moreover, even though horizontal concentration on some of the market stages may be anticompetitive as well, vertical integration is likely to be more harmful. As a consequence, we recommend a stricter approach to vertical merger control in this industry, as well as a more active abuse control against already vertically-integrated media companies.

Significant Role of Orography in Shaping the Northern Hadley Circulation and Its Poleward Expansion During Boreal Summer

AbstractThe southward circulation embedded within the conventional northward circulation of the Northern Hemisphere (NH) Hadley circulation (HC) is defined as a minor circulation. Motivated by the vital influence of this minor circulation, we investigate whether the minor circulation in the NH HC is a robust feature during boreal summer (June to September). Our results show that although the uncorrected NH HC includes the minor circulation, the corrected NH HC is characterized as one single northward circulation regardless of the reanalysis data set and method used. This finding implies that the minor circulation concept is introduced by not considering orography (i.e., surface pressure). After correction, the significance and degree of the poleward expansion of the NH HC during boreal summer are obviously reduced. We also note that regional biases in the meridional wind can result in considerable biases throughout the entire NH HC via the process of vertical integration.

A bridge over troubled water: A Structural Political Economy of vertical integration

This article proposes a new interpretation of the logical process of vertical integration, exploring its socio-political dimension. The first step is to show that models of industrial interdependencies (in the Leontief and Sraffa formulations) and vertically integrated models (in the Pasinetti formulation) imply profoundly different views on production, distribution, and socio-political conflicts. The next step is to focus on the process of vertical integration in itself—on its being a ‘bridge’ between such different views. Because analytically equivalent representations of economic structures have such different socio-political implications, economic structures cannot be seen as univocally determining economic interests or conflicts in society. This result opens up a new field for structural analysis: studying how the formation of interests in society is influenced, but not determined, by economic structures. The article suggests a route to address the socio-political dimension of economic structures, which is largely left on the background by structural economic analysis.

Izazovi vertikalne integracije učesnika lanaca snabdevanja prehrambenim i organskim proizvodima nacionalnog porekla

This research is focused on the possibility of applying the process of vertical cooperation and/or integration of members of the supply chain of products with domestic origin in the AP Vojvodina market so that create and preserve the long-term competitive advantage. The primary task is to research the current state of the AP Vojvodina food and organic products market through the analysis of individual productivity and profitability assessment of the participants in the supply chain: trade enterprises, producers (processors) of food and organic products, and agricultural enterprises. The results showed that the financial indicators of productivity and profitability are statistically significantly related to the type of business activity, and that the application of an adequate model of vertical cooperation and integration of the observed groups of participants can increase the income of all participants and, consequently, increase their productivity and profitability. Special attention is paid to the legislation of vertical integration in accordance with the legislation of the Republic of Serbia and the EU.

Why Terminate? Exploring the End of Interlocal Contracts for Police Service in California Cities

With the recent growth in interlocal contracts for municipal service delivery, insufficient attention has been given to city governments that choose to terminate interlocal contracts. The termination of interlocal contracts deserves scrutiny because theory points to multiple possible explanations for service change. This research examines the termination of interlocal contracts for police service delivery by California cities between 2001 and 2010. Public documents from the nine cities that terminated interlocal contracts are analyzed to assess rationale for termination. The stated reasons for termination include problems related to community responsiveness, the contract relationship, local control, service cost, service levels, and staffing. Grounded theory is advanced through analysis of the nine cities. The research refines our understanding of how cities weigh the costs and benefits of in-house production versus production through interlocal contract. While contract failure is evident in some cities, termination may also be explained as a process of vertical integration and service expansion. The research refines theories about local government service delivery and informs the practice of interlocal contract management.

Rabbit meat sector value chain

<p>The aim of this research was to study the cuniculture industry in Spain, according to the Food Value Chain model, and analyse what its main operators are. Four components were identified in the rabbit meat production chain: input suppliers, producers, abattoirs and cutting plants and distribution. Distribution can follow 2 paths, the traditional channel and the modern or large-scale distribution channel. Rabbit feed, which represents the main input for producers, is a minority product, especially when compared to feeds formulated for other livestock species, as its manufacture calls for specialist companies. Rabbit production is linked to the rural environment and constitutes a significant economic option, not only for farms but also for the industry around it, such as feed producers and distributors, technicians, slaughterhouses or leather processors, among others. Rabbit farms are generally independent and not usually integrated, as found in other types of livestock. Slaughterhouses currently represent one of the main axes of the rabbit meat production chain and are either focused on traditional or large-scale distribution. The main strategic changes are apparent in slaughterhouses focused on large-scale distribution by seeking cooperative ways of working, using slaughterhouse groupings and vertical integration processes. This way, they manage to adjust margins by working with economies of scale and, ultimately, lower prices. Slaughterhouses whose strategies are based on traditional distribution may achieve higher margins than those focusing their efforts on large-scale distribution, but their growth is limited. In traditional retail premises, the majority of sales consist of whole carcasses in bulk, which are prepared and quartered as per consumer tastes. Large-scale retail distribution outlets sell both cut produce from the meat counters located in their own premises and pre-packaged products, more suited to self-service formulae. Brand presence is minimal, as is that of processed or semiprocessed products. This current situation requires support from the entire sector in order to provide rabbit<br />meat with new features better adapted to consumers’ needs, above and beyond price and with greater added value.</p>

Structural changes in the container liner shipping influencing shipping agent’s role

The article presents structural changes in liner shipping sector, as many global Container shipping lines are opening their own agencies and many independent shipping agents are consecutively closing down their activities, either via takeovers or by going out of business completely. The process of horizontal and vertical integration in shipping industry is re-shaping the entire logistics industry. Such changes put pressure on shipping agents to redefine their market role and develop services with added quality, and relationships with actual and new principals. They are forced to seek for new ways to make income therefore they are forced to perform additional roles, in order to satisfy carriers on one hand, and usually just a few clients, on the other. A market analysis in Slovenia has been performed among companies offering ship-port services, with focus on comparison between independent agents and Container Line offices. It has been ascertained that independent shipping agents must implement the new strategy which is closer to a forwarder’s mentality and market role.

Breaking Down World Trade Elasticities: A Panel ECM Approach

This paper exhaustively analyses the recent decline of international trade elasticities to output growth. We extend an empirical model of import demand functions to account not only for transitory factors, such as relative prices and import intensity-adjusted measures of demand (I-O Tables), but also for habitually neglected permanent factors such as protectionism, vertical integration (i.e. Global Value Chains) and foreign direct investment (FDI). Dealing with a non-stationary heteregenous panel of 27 countries, we estimate a panel Error Correction Model from 1960 to 2015 in order to break down world trade elasticities. Our main findings evidence: i) the presence of panel (cointegrating) structural changes in the trade-to-GDP relationship in 2000 and 2009, private consumption being a source of disruption; ii) although investment and exports are the most sensitive, import-intensive components of demand, this is far from being transitory, which is clearly weighing on the current slowdown; iii) the relevant contribution of GVCs shows a procyclical pattern, questioning the permanent nature of the current levelling-off of vertical integration processes. The lack of progress in reducing import tariffs and the usual discarded, complementary relationship between FDI and imports have a residual role. All in all, our results have substantial policy implications, as they reinforce the idea of a historical break towards a new ‘normal’ trading phase.

Education as Market Product: Identification Problems

The analysis of the activity of the education market is carried out in the present paper. The types of market structures at the education market in the conditions of high schools competition are considered. The characteristics of the university as a legal economic and functioning subject are given. The supply and demand of the educational product characteristics are determined. The central issue of the universities positioning in the modern economic conditions is defined. The legal status, the education competitive strategy and competitive advantages of the university are given. Several strategies to improve competitiveness are suggested: the horizontal and vertical integration processes. Horizontal - the entrepreneurial activities of the university, the expansion of educational services, internationalization of education and integration into the international educational space and integration processes "university-science-business." Vertical - introduction of the concept of lifelong education, "school-university-business." Both of them are considered to be rather competitive and their mutual penetration seems to be an efficient trend. DOI: 10.5901/mjss.2015.v6n6s3p211

Transformation of the agriculture in russia: Significance of present-day vertical integration

The paper analyzes the main trends in the transformation of the functional and territorial structure of agriculture in Russia in 1990–2013 and the influence of processes of agroindustrial integration. Full quantitative assessment of vertical integration processes is impossible due to the lack of statistical accounting of the consolidated activities of vertically integrated companies (VICs) by state statistics bodies. However, it is possible to study the main features of the functional and territorial organization of VICs and their development trends. This analysis was conducted based on data of Federal State Statistics service and AGRO-300 of the Nikonov All-Russia Institute of Agrarian Problems and Informatics Ranking. It is established that the concentration and diversification of primarily high-intensity and highly profitable industries with relatively quick capital turnover occurred: poultry, swine, grain farming, and the cultivation of industrial crops. Vertical integration has already led to the creation of about 60 large VICs, which occupy leading positions in the production of agricultural products and food; they consumed the former sovkhozes and kolkhozes and possessed significant means of production and development potential at the beginning of the 2000s. The hard integration model is predominant, where the structural units are practically deprived of self-organization. Priority state support for VICs not only strengthens their positions but also restricts the opportunities for farms and private homesteads. Traditional agriculture remains at periphery, outside the scope of VICs.

Local levers for change: Mainstreaming ecosystem-based adaptation into municipal planning to foster sustainability transitions

Unprecedented global challenges demand wide-reaching societal modification to ensure life support functions and human well-being. In the absence of adequate international responses to climate change and the need for place-based adaptation, local governments have a pivotal role in fostering sustainability transitions. In this context, the importance of ecosystem-based adaptation is increasingly recognized as a multi-benefit approach that utilizes ecosystem services to harmonize human-environment systems. Although research advocates the mainstreaming of ecosystem-based adaptation to advance sustainable planning, the pathways for its systematic implementation are missing and it remains unclear how local authorities can best integrate this new approach into their core work. The purpose of this study is to increase knowledge of the potential ways to mainstream ecosystem-based adaptation into municipal planning. We investigate four coastal municipalities in southern Sweden (Malmö, Helsingborg, Lomma and Kristianstad) and examine, based on vertical and horizontal integration processes, the key characteristics of existing mainstreaming strategies. Results show that, although ecosystem service planning and climate change adaptation planning together establish the conceptual foundation for ecosystem-based adaptation, related activities are often implemented separately and are rarely comprehensive. We illustrate how combined mainstreaming strategies can reinforce and complement each other and how strong leadership in the integration of processes has the ability to compensate for a lack of guidance or supporting legislation from higher decision-making levels. Finally, we conclude that systemic mainstreaming of sustainability issues is a promising avenue for initiating and promoting sustainability transitions and has the potential to address the criticism that other mainstreaming topics have faced. On this basis, we specify the core characteristics necessary to ensure its effective and meaningful application.

Regional Innovation Systems and Revolutionized Sectors: The Mobile Gaming and Digital Music

Mobile gaming and digital music industries’ dynamics and growth show high potential of value network and induce new ways of designing and developing competitive value propositions throughout disruptive innovation processes. These innovative processes have the potential to lead to design and development of new products and services, by combining games with music contents and revolutionizing the current media entertainment sector. In view of that, mobile gaming sector and market analysis were conducted throughout competitive analysis frameworks, analysis of regional innovation systems and online surveys to support the blue ocean opportunities and corroborates its market potential. Hence, the analysis involved the study of the competitive environment and technological convergence of both industries and the impact of this new game in industry dynamics. Moreover, the key drivers and trends influencing the business environment were analysed and competitive strategies were discussed as new trends for the sector, as well as new value chain rearrangements and potential players’ competition models. Finally, there were discussed vertical and horizontal integration processes, industrial clustering and agglomeration economics to lead regional innovation systems, higher knowledge investments and R&D spillovers to support blue ocean opportunities benefiting customers through new and innovative value propositions. Major sectorial changes and societal impacts for the future are also discussed.

Grippe aviaire dans la filière. La réorganisation du secteur agro-industriel au Vietnam

The crisis of avian influenza occurred in Vietnam in late 2003 has affected the organization of the local poultry value chain. This crisis has resulted in an alliance between the Vietnamese government and agro-industrial sector considered more capable than the traditional one, to meet the requirements of biosecurity. In the short term, this alliance has allowed agro-industrial groups to develop and to take the control of a growing number of activities in the avian chain through a process of vertical integration (animal raising slaughtering, retailing) and, to a lesser extent, through contracting with farmers. This movement was slowed down once the crisis abated, since consumers turned back to traditional products, Remerciements : Ce travail a ete realise dans le cadre du projet Gripavi, finance par le ministere francais des Affaires Etrangeres, et coordonne par le CIRAD. Il s'appuie en grande partie sur les entretiens realises dans le cadre du stage de Master d'Economie de M. Anh Tuan Pham (2009).