Presented by Suong Jian & Liu Yan, MGMT Panel , Guangdong University of Finance.
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ORGANIZATION STRUCTURE AND CORPORATE GOVERNANCE
What is the difference between a vertical and a horizontal business relationship?
A vertical relation is a business connection between companies at different points
along the production-distribution chain from raw materials, to finished goods, to
An example of a vertical relation is the business linkage between
Wal-Mart Stores, Inc., the giant discount retailer, and Rubbermaid, the leading
manufacturer of rubberized food- and household-storage products.
By way of
contrast, a horizontal relation is a business affiliation between companies at the same
point along the production-distribution chain.
The commercial relationship between
Wal-Mart Stores, Inc,. and Target Corp., parent company of Target discount stores, is
an example of a horizontal relation.
During the last few years, the desktop computer has evolved from a tool for
computation to an Internet-centered communications device.
Is this likely to change
corporate structures by increasing the efficiency of smaller, more nimble
The emerging information age of the twenty-first century promises to
Whereas the Post World War II
corporate environment was designed for the efficient mass production of
standardized industrial and consumer goods, present-day customers are more
interested in unique combinations of goods and services to meet specialized needs.
Just as the industrial revolution transformed the competitive landscape of
twentieth century, so too is the information revolution transforming corporate
Highly skilled managers no longer need to locate in New York, Chicago,
or Los Angeles to find exciting career opportunities.
Powerful desktop computers,
the Internet and low-cost satellite communications make it possible to work in LA
while living on Catalina Island, in Sante Fe, New Mexico, or Durango, Colorado.
Centralized authority supported by layers of managerial staff is being replaced by
desktop computers and sophisticated software that make line personnel instantly