Vertical integration when its suppliers have a lot of market power and can dictate terms. ... Third, vertical integration gives a company economies of scale. That's when the size of the business allows it to cut costs. For example, it can lower the per unit cost by buying in bulk.
Thanks to the quantity manage during the production process.
Explanation:
The vertical integration is the process where a company decides to integrate another company under their management. Usually the enterprise that takes the purchase towards tends to be more powerfull than the other in financial terms and also in the market. This method let the buyer use all of the resources that the company bought has. Also, it is very common that this last company is in the same bussiness that the first one, so that they manage in the same areas. Therefore that additionating more equipment, workers and another resources may help the buyer to <em>increase the number of quantity in the production process</em> making possible to have economies of scale. All this at the same time that it takes more clients to increase their sales.
Big companies could grow by merging with other companies or acquiring them. B. Factory workers could start in low positions and work their way up to management.
The presidios faced many challenges such as food and security of its people and struggle to maintain their control from the natives people and save themselves from native people that lives around them because the Spanish comes and captured their lands. Spanish soldier defend the newly captured territories and take on such a difficult job for their country's welfare, prosperity and for expanding influence of their country.
