Question

o What are the benefits and challenges of growing through internal expansion? Acquisition? Network and alliance?

o What is virtual vertical integration? How might this strategy lower healthcare costs and improve quality?

o The promises of horizontal integration include improved efficiencies and greater market power. Which of these benefits is most easily achieved? Why?

Answer 1

	Internal Expansion	Acquisition	Network and Alliances
Benefits	1) It helps the organization to sustain the culture 2) The company can properly firm up the strategy and plan for expansion with ease	1) It helps to get access to talented pool with ease and reduce cost on new set up 2) It helps to get larger customer base in short time and thus preferred when company wants to quickly enter the market	1) It helps to leverage the brand value of each other and maximize gain 2) It helps to reduce risk due to partnership
Challenges	1) It involves lot of financial inevstement and capital expenditure 2) The expansion may be time consuming due to lot of approval and paper work	1) The risk is higher compared to Internal expansion 2) It can result in conflict between existing employees and new employees	1) It may result in conflict on distribution of power and resources 2) Decision making may be slow due to multiple stakeholders