Unformatted text preview: with Hon Hai is known as a vertical merger because Hon Hai would give Sony a constant supply of LCD panels that are needed in the production of a television. “Profit is the amount of money the business earns above and beyond what it spends for salaries and other expenses” (Nickels 5). Sony is trying to increase their profits by selling plants in places where production costs are high and are combining with the company Hon Hai to produce their products more efficiently. “Outsourcing is contracting with other companies to do some or all of the functions in a firm” (Nickels 6). Sony is outsourcing it production of its products with Hon Hai because they can produce televisions with the lowest amount of expenses....
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- Fall '08
- Marketing, Hon Hai, company Hon Hai