Level of Integration
Between Two Organizations

One organization may adopt a strategy to integrate part or all of their organization with another organization. These can be accomplished at a range of degrees of integration. Below are the options, from least integrated to most integrated.

Outsourcing

• Contract for services

Alliances

• Non-equity licensing
• Shared resources and competencies
• Non-controlling acquisitions and investments (less than 50%)

Joint ventures

• Non-controlling joint venture partner (less than 50%)
• Equal partner (50%)
• Controlling partner (more than 50%)

Acquisitions

• Partial acquisition (more than 50%, less than 100%)
• Total acquisition (100%)

Reference:
    Krell, Eric. (2002, July). The Alliance Advantage. Business Finance. pp. 16-18, 20-23.

© Copyright 2002 Raymond S. Kulzick. All rights reserved. 020722.

This publication provides business, financial planning, and/or tax information to our clients. All material is for general information only and should not be acted upon without seeking appropriate professional assistance. Read Disclaimer.