Vertically integrated means what, exactly?

Question

I recently received a scarf that says on the tag that it was, "manufactured in a vertically integrated facility." What does that mean?

Answer 1

Vertical integration is a management style of ownership and control. In this system, the firm owns many of the various entities that are necessary for the complete production and distribution of a product or service.

Example: A magazine publishing company may own not just the magazine, but will own the forest land where trees are grown, the paper mill where wood is turned into paper products, the printing presses where the publication is produced, and the company that handles the distribution of the magazine.

Answer 2

Phips is right but maybe I can simplify. Banks loan money for homes, and much of that is borrowed, like they loan out the depositor's money or borrow elsewhere. Only 20% is theirs. In return they get a mortgage. Then they sell the mortgage to an investor and get their money back collecting the loan fees as their profit. Then they loan the money out again. But those loans were riskier than known and some started to fail. This scared the investors so much they refuse to buy the mortgages or will only buy them at a very low price (costing the banks money). So the banks won't sell them for such a low price but that means they don't have money coming in to loan. Thus the money stops moving. So with no money coming in to loan, people or businesses can't get "credit", they can't borrow. There is no money there. That is the crisis. I think that is about as simple as I can make it.

Answer 3

Corporate gibberish for a standard company with standard organizational chart who may or may not have a vertical chain of supply/manufacturing/distribution with total control over all facets of the chain.

Answer 4

what is integrated facility management ?