Question

How does vertical integration and diversification impact a company's organizational structure and activity?

Answer 1

Vertical integration and diversification broadens the structure of the company and makes it's employees expand their abilities. When the company enters other fields the culture of the company becomes more open enabling the employees to be more innovative and develop. It also helps the company expand it's services and hence increase the revenue. It also helps the company grow in international environment. Hence vertical integration and diversification have positive impact on a company and it's culture.