Horti-Business Management (2+0)

Degree of integration

Ownership integration

• This occurs when all the decisions and assets of a firm are completely assumed by another firm.
  
• Example: a processing firm which buys a wholesale firm.
Contract integration

• This involves an agreement between two firms on certain decisions, while each firm retains its separate identity.
  
• Example: tie up of a dhal mill with pulse traders for supply of pulse grains.