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Horizontal integration

Horizontal integration is the degree at which employees are specialized and integrated in. There are low horizontal levels which show that employees are specialized in their work and high horizontal levels which show that employees are integrated in their work. A business's horizontal boundaries can determine the quantities and changes of products that are produced by two or more businesses that have been merged producing the same product as one business . Some benefits of the horizontal integration strategy is that it is good for fast changing work environments as well as providing a broad knowledge base for the business and employees.^[20] High levels of horizontal integration leads to high levels of communication within the business. Another benefit of using this strategy is that it leads to a larger market for merged businesses, and it is easier to build good reputations for a business when using this strategy.^[21] A disadvantage of using the horizontal integration strategy is that this limits and restricts the field of interest that the business is expanding the new products into.^[22] Horizontal integration can affect a business's reputation, especially after a merge has happened between two or more businesses. There are three main benefits to a business's reputation after a merge. A larger business helps the reputation and increases the severity of the punishment. As well as the merge of information after a merge has happened, this increases the knowledge of the business and marketing area they are focused on. The last benefit is more opportunities for deviation to occur in merged businesses rather than independent businesses.^[21]