Aliah Cyril M.

Hernandez

3BSA-1

Engaging Activity

5 Organizations

Amazon

Amazon’s acquisition of Whole Foods is one of the highest-profile examples of forward integration. This
acquisition is considered as forward integration because it provides Amazon the 460 brick-and-mortar
Whole Foods outlets as places to sell its products or have customers pick them up. Furthermore, the
company also uses backward integration most on its transportation and distribution. (Decker, 2019)

McDonald’s

McDonald’s, one of the most famous fast-food chain in the world is a master in the successful
implementation of backward integration as it caters nearly 100 countries around the globe offering
Burgers, French Fries, Ice Cream and Beverages. To procure the raw materials which are used for the
preparation of its products, the company has set up its own manufacturing plants. McDonald’s raises its
own agricultural products to maintain the quality and ensure the same products are being offered to
consumers across the globe. Using this strategy, McDonald’s has achieved the fate of being a globally
successful food chain brand and delivers value for money to its loyal customer base across the globe.
(EDUCBA, 2020)

Apple Inc.

Apple has consistently introduced new versions or their iPhones with added enhancements and
upgrades. As a result, Apple Inc. (AAPL) had amassed a market share of more than 50% of the
smartphone market throughout the world. This is a form of market penetration, wherein Apple has a
larger market share than all of its competitors combined. (Kenton, 2020)

NBA

The NBA has always dominated the market for professional basketball in the United States, but the
league has been also recognize in the international markets and become wider as time passed by. For
example, in 2008 the NBA succeed in negotiations to lay the foundation for bringing the NBA to China.
By implementing a market

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Development strategy, the NBA brought televised games to China, where just a decade later it’s become
the most popular sports league in the country and worth more than $4 billion. (Pilcher, 2020)

Unrelated diversification

Samsung Group’s new businesses appear to be going awry. Samsung Electronics, the group’s flagship
company, is considering taking over its light-emitting diode (LED) joint venture with affiliate Samsung
Electro-Mechanics as the LED business suffers from slowing demand for TVs.

The news comes after Samsung Electronics said in May it would unload is solar cell business to its
affiliate Samsung SDI, after a disappointing start in the new business.

“They seem to be putting expansion of new businesses on hold as market conditions deteriorate,” said
Jae Lee, an analyst at Daiwa Securities.

Samsung has spread into new businesses such as renewable energy and healthcare after its chairman
Lee Kun-hee predicted last year that most of the group’s current businesses and products would
disappear in 10 years.

https://www.ft.com/content/74be2153-f4d5-3771-af1c-acd83accbd98

Song Jung-a

November 28, 2011

Emerging Markets

Samsung Diversification going awry

Realistic

Every organization must set goals that are realistic (possible to achieve) based on its nature, timing and
extent. Setting objectives that are impossible for an organization to achieve is like having an illusion and
drowning itself down whenever this illusion does not

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Come to reality. This is probably the reason why most hygienic products does not provide 100%
assurance that their products can eliminate germs in our body, because it is just what is real. In addition,
something that is too good to be true might create issues that would result to fraudulent acts.

Understandable

Any objectives of a company or an organization must be understandable for the very reason that it is
easier to know how to achieve something if we truly understand what we are trying to achieve at the
first place. Lack of understanding in one objective might mislead the organization on its goals and may
create a negative impact or consequences for the organization as time passed by.

Measurable

Setting objective that is measurable will greatly help the organization to evaluate its performance on
whether it is succeeding or not on reaching its objectives. Furthermore, it is also important for an
organization to have measurable objectives for it to decide on the next step to do, whether for
improvement or minimization.

Hierarchical

Most objectives must be set to attain future or other objectives. In a going concern basis, organization
must always look for improvement or advancement one step at a time. With this, smaller objectives
must be done first before those bigger objectives because anything that will be done through one click
may also disappear in one snap. In this technique, an organization has the most chance to reach its goals
with less mistake and negligence.

Congruent across departments

Organizations that contain several departments must maintain objectives that are congruent to each
department they have. If not, misunderstandings will occur and the ultimate goal of succeeding will be
harder to achieve. For a boat to not sank in the river, the passengers must balance the both sides. Same
with an organization, its objectives must be attainable by all its departments and must be balance with
the others to avoid any future consequences.

Managing by Extrapolation

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“If it isn’t broke, don’t fix it.” It is simply a concept wherein the management is only concern with its
present and not its future. It does not emphasize planning and precautions for its organization. It is like
having a mindset that no problems must be brought up unless it arises.

Managing by Crisis

This type of management is for those who are not welcoming or looking for any improvement. It only
acts when necessary and does not plan to navigate the market but rather be navigated by the situation.
It is like “Just go with the flow.” Mentality, wherein whatever happens, happens and they will just do
what is necessary to sort things out.

Managing by Subjective

“Do your own thing, the best you know how.” It is more of travelling without any destination. You just
drive until you get tired, and still you don’t know if you have reach the point where you truly have to be.
For an organization, it is a management wherein emphasizes “do your job” but not “this is what your job
is for.”

Managing by Hope

It is good to have hope and positive mindset but considering this as a form of overall management will
mostly disappoint the organization itself. It is like neglecting all the responsibility of making a plan or
decisions for what is truly best, and just arrive at the conclusion that everything will fall to its place.
Actions done are not thoroughly thought and just assumed that it will be effective.

Assist in evaluation by serving as Standards

Having clear objectives whether reaching it or not will create a standard for the company’s performance.
Therefore, it helps in evaluating the company whether it is in good condition or not. As the company did
an evaluation that is more reliable due to its set standards, it will then know what to do next and what
are the factors or issues that must be focused on or addressed.

Establish priorities

Once clear objectives are set forth, priorities will also be set. These priorities, in line with those
objectives, priorities are set to ensure the success of attaining those objectives.

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This will somehow affect the company’s preferences and attention on what arising issues must be
address first or thoroughly.

Reduce uncertainty

Uncertainties in the effects of actions being done cannot be eliminated but somehow could be reduce if
the company has set clear objectives to what they are really trying to achieve. While setting clear
objectives, company’s will be able to attain information on what are the possible scenarios that might
happen during the course, creating an alternative plan for all and reducing the uncertainties by having
initial predictions. With this, the company will be more prepared in any possibilities while achieving its
objectives.

Minimize Conflict

One of the benefits of having clear objectives is the minimization of conflicts. This is because once
objectives are set, actions that should be done by the company and its personnel are only those that will
help the company in attaining its objectives, creating only one agenda and preventing conflicts or
misunderstanding. When conflicts are then minimize, companies will be able to succeed more by having
the same goals with each of its personnel.

Aid in Allocation of Resources

With clear objectives, allocation of resources for different parts of the company will be easier to
balance. This is primarily because when objectives are set, the roles of different parts of the company
are also clearly sorted out, creating a reliable idea on how resources should be allocated to them. When
this is effectively done, the company will be able to avoid overuse of resources that may possibly
minimize costs and negative impact to the environment.

References:

Decker, F., (January 29, 2019), Example of a Company’s Forward Integration,

https://smallbusiness.chron.com/example-companys-forward-integration-37601.html

EDUCBA, (2020), Vertical Integration Example, https://www.educba.com/vertical-integration-example/

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Kenton, W., (September 26, 2020), Market Penetration,
https://www.investopedia.com/terms/m/market-penetration.asp#:~:text=Example%20of%20Market
%20Penetration&text=1%EF%BB%BF%20Apple%20has%20consistently,all%20of%20its%20competitors
%20combined

Pilcher, R., (March 12, 2020), What is Market Development Strategy? (Definition and Examples),
https://www.lightercapital.com/blog/what-is-market-development-strategy-definition-examples/