Drug Trafficking Deck (E3) Flashcards
This business model has a business buying out or absorbing its competition to increase the production of its own product.
What is horizontal integration?
What is the purpose of horizontal integration?
To grow their existing business or prevent a competitor from gaining market share
This business model has a business controlling multiple stages of its own production, from manufacturing to retail.
What is vertical integration?
What is the purpose of vertical integration?
To reduce the company’s costs and give it greater control of its products
Walmart utilizes both horizontal and vertical integration. Explain how Walmart uses both.
Horizontal - other brands sell their products in Walmart, allowing the company to maximize its profits
Vertical - Walmart owns and operates its stores, warehouse clubs, distribution centers, and trucking fleet
This practice refers to growing or making your product.
What is manufacturing?
This practice refers to transporting/moving large quantities of product (i.e., moving weight).
What is distribution?
What is the drug trafficking equivalent of a distributor?
A drug smuggler
This practice refers to buying and selling product in bulk (large) quantity.
What is wholesale?
What is the advantage of buying quantities in bulk?
It can be cheaper than buying individual quantities
Why is wholesale referred to as NOT-USER-FACING?
The average drug consumer is usually not buying drugs in bulk; this is a more behind-the-scenes practice
This practice refers to the sale of goods to the public in relatively small quantities for use or consumption.
What is retail?
Why is retail referred to as USER-FACING?
The average drug consumer is usually buying small quantities of drugs; retail is a very “in-your-face” practice
Why are only a few drug trafficking organizations that utilize vertical integration?
Vertical integration is a business model that is very easily tracked
Not in the lecture, but what is a plausible consequence of horizontal integration in drug trafficking?
The violence that comes with selling your product on someone else’s turf
What are the 4 major drug trafficking network considerations?
1) Size
2) Drug composition
3) Geography
4) Logistics
What are the 3 drug network models?
1) Pure agricultural
2) Pure chemical
3) Mixed
Name this network model.
Pure Agricultural
Name this network model.
Pure Chemical
Name this network model.
Mixed
In a drug trafficking network, this person typically has a limited skill set and is tasked with overseeing/protecting the crops.
Who is the farmer?
In a drug trafficking network, this person is VITAL and has a high degree of knowledge when it comes to making drugs.
Who is the chemist?
In a drug trafficking network, this person is the wholesaler.
Who is the middle-man?
In a drug trafficking network, these are the retailers.
Who are the street dealers?
This method of taking down drug trafficking networks involves taking down the trafficking ring from the bottom up.
What is rolling up?
How exactly would you accomplish rolling up on a drug trafficking network? What steps would you take?
Arresting and attaching a wire to the people at the lower end of the network (e.g., street dealers) so that law enforcement can intercept the next level up, rinse, and repeat
What is the most essential element to ensuring that you’re successfully rolling up on a network?
Intelligence (information)
