interrelationships and interigation

Question 1

What is vertical interigation?

Answer 1

a company has control over other companies at different levels

Question 2

irrelationships

Answer 2

organisations often choose to work together for mutual benefit. An example is the National Rail Days Out promotion

Question 3

Interdependence

Answer 3

A relationship between 2 or more organisations that reply on each other (tied together)

Question 4

Interigation

Answer 4

occurs when 2 or more business or organisations work together. Eg:hotels work with travel agents who reach customers

Question 5

horizontal interigation

Answer 5

Same level in the distribution chain
merge voluntarily or taken over

Question 6

Vertical integration

Answer 6

when organisations at different points in the chain of distribution merge

Question 7

Advantages

Answer 7

Economies of scale achieved by sharing core functions such as administration

Question 8

disadvantage

Answer 8

confusion of identity, might lead to customer not knowing which organisation they are dealing with

Question 9

advantage

Answer 9

joint promotions and shared advertising split the costs of advertising and may make a greater impact on customers

Question 10

Advantage

Answer 10

Increased venues
increased customs
shared expertise
benefits from good publicity about partners
shared customer basee

Question 11

disadvantage

Answer 11

less personalised service provided when organisations work or merge

Question 12

disadvantage

Answer 12

less personalised service provided when organisations work or merge

Question 13

disadvantage

Answer 13

shared commissions

Question 14

chain of distribution

Answer 14

1. Principals
2. Tour Operator
3. Travel agency
4. Consumer