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A company needs to consider the marketing mix in order to meet their consumers' needs effectively. No one element of the marketing mix is more important than another – each element ideally supports the others. This is when an organisation is divided into divisions based on a product they make or a product range.
For example, if a large firm can produce a given type of sunglasses for ?20 while it costs its smaller rival an average of ?30, then the larger firm has a ?10 per unit cost advantage. Horizontal integration is when two companies at the same stage of the production process merge or take over each other.
If Ford Motor Company merged with Toyota Motor Company that would be an example of Horizontal Integration.
Vertical integration occurs when firms at different stages of the production process merge together. Forward vertical integration is when Ford buy out or merge with their customers, which in this case could be a car showroom (eg Arnold Clark).
Backward vertical integration would be when a company like Ford buy out or merge with their suppliers. Diversification or conglomerate integration is when firms in different, unrelated markets merge. A merger is when two companies decide to join together, like for example when Halifax and Bank of Scotland combined to form HBOS.
BBC navigation News News Sport Weather Shop Earth Travel Capital iPlayer Culture Autos Future TV Radio CBBC CBeebies Food iWonder Bitesize Travel Music Earth Arts Make It Digital Taster Nature Local Menu Search the BBC Bitesize Levels Primary KS1 Early and 1st level KS2 2nd level Secondary 3rd level 4th level CA3 KS3 GCSE National 4 National 5 NA iseanta 4 NA iseanta 5 TGAU Higher A€rd A?re All subjects Home GCSE Business Business environment Stakeholders Businesses have different types of internal and external stakeholders, with different interests and priorities.
It illustrates how what businesses decide to make and produce are driven by customer needs and wants.

Then with the money and profit created by sales to customers, employees are paid and they themselves become customers as they go and buy other goods and services. This is why when people are out of work (unemployment) less money is in the economy and inflation (the rise in prices) will be generally low. Owners generally seek high profits and so may be reluctant to see the business pay high wages to staff. Firms modify each element in the marketing mix to establish an overall brand image and USP, or unique selling point, that makes their products stand out from the competition.
The major advantage is that it brings together employees with similar skills allowing expertise to develop. Sometimes these interests can conflict.What are stakeholders?A stakeholder is anyone with an interest in a business. Suppliers to a major automobile manufacturer could be car electrics, glassmakers or in this example a rubber plantation which is used to make tyres for the car wheels.
In 2003, Stagecoach, the Scottish bus operator, sold off its Coach USA operations in Texas for ?18 million. Stakeholders are individuals, groups or organisations that are affected by the activity of the business. On the other hand when many people are in work with disposable income to spend, then inflation will rise as goods and services will have a high demand.
It will therefore benefit owners but work against the interests of existing staff who will lose their jobs. The major drawback is that such hierarchical structures can end up unwieldy resulting in slow decision making and communication. This has the major advantage of being able to be responsive to local cultural needs, but there is naturally a high cost due to duplication of effort.

They can buy raw materials cheaply in bulk and also spread the high cost of marketing campaigns and overheads across larger sales.
For example, noisy night-time deliveries or a smelly factory would be unpopular with local residents. In some cases planners may have tried to separate out some land uses, eg an airport is separated from a large housing estate.The Burgess and Hoyt modelGeographers have put together models of land use to show how a 'typical' city is laid out. One of the most famous of these is the Burgess or concentric zone model.This model is based on the idea that land values are highest in the centre of a town or city.
These range from small firms owned and run by just one self employed [Self Employed: A person who is self employed works for themselves instead of an employer. For example, noisy night-time deliveries or a smelly factory would be unpopular with local residents.Internal stakeholders are groups within a business - eg owners and workers.
While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Many people now choose to live and work outside the city on the urban fringe - a phenomenon that is not reflected in the Burgess model.Every city is different. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.
This is based on the circles on the Burgess model, but adds sectors of similar land uses concentrated in parts of the city.

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