Vertically Intergrated NMC: Key Term and Why you are Interested in It? (Coursework Sample)

Key term and why you are interested in it
The key term in my research work is Vertically Integrated Multinational Corporation. After doing my normal text book reading and course work study I developed a very keen interest on Vertically Integrated Multinational Corporation as a result of the dire need to address current management challenges in today’s business setups thus forming the bases of my research work.
Explanation of the key term
Vertical Integration refers to a management scenario whereby a multi international or any company in which the supply chain of the company is owned by that specific company. Example, the Apple Company manufactures both the hardware processors and the development of the software parts of the apple iPhone and iPad. This totally eliminates existence of any supplier on the company. This brings the highest percentage of the company supply chain under one common ownership. Vertical integration is mainly contrasted by horizontal integrated which refers to an aspect of a multinationalcorporation or any company manufactures related items or products.Although vertical integration is tough and challenging to develop and very expensive in terms of cost when fixed wrongly, it is a strategy that can guarantee success of the multinational corporation or the said company in question.
Major article summary
The author of this article explains the overall aspect of vertically integrated as a management tool in determining the pricing of a product. He sites how marginal cost and taxes or tariffs on both primary and secondary products are key in the determination of the price tag of the product in question. He depicts that the marginal cost of both the primary domestic output as key determinant of the domestic revenue sales. He concludes that long term company or multinational profits are mainly determined by the barriers encountered in terms of trade tariffs and taxes of the product.
Discussion 1
The cited work relates to my explanation and content of this week module since it enhances a concrete understanding on the management concept of virtual integrated multinational. Let’s have a close analysis on the overview of the vertically integrated multinational, an article by Lorraine A.B Eden. The author show cases how different people examples include Solomons, Hirsh Leifer, Copithorne have developed different model to explain this very key aspect of management which is vertically integrated with the views of the pricing policies. They also explains on the importance of the vertical integrated aspect in determining the company or corporation overall profit output. Copithorne showcases of how intra-firm product transfer either between divisions or departments affects the overall pricing of the commodity. He thus insists on the need to be cautious in making choices on transferring a price since a price change or fluctuation on one or more affiliate of the multinational tends to affect the overall commodity pricing. He also sites taxes and relevant tariffs on both the primary and secondary product as a key influence in determining the pricing of the commodity in question. He depicts how taxes on raw materials and even finished products command the price tag to be put on the product. Also home and foreign countries trade tariffs play a key role in shaping the price of the affected product. Marginal cost is also bound to change upon transfer of products among division. The main agenda of this article ...