Management Theory and Studies for Rural Business and Infrastructure Development, Volume 38, Number 1

Veritical integration in meat industry: case of Ukraine

Vitaly Zinovchuk, Vita Rud

Abstract

The meat industry is strategically important sector of Ukraine national economy due to its role in providing the country food security as well as its entering into international markets. The problem of research is connected with the need of meat industry in a new vision of management principles, organizational design and internal interaction mechanism as well as the changing development motivation. The aim of the research is the substantiation of the meat industry organizational structure development based on different models of vertical integration. The research methodology supposes the use of statistical analysis, the logical model construction, monographic analysis, the method of expert appraisals. As the study results, five organizational models have been proposed for vertical integration in meat industry (contracting, corporation, holding, cluster and a vertical marketing system). The models’ advantages and the ways of their development as well as the problem points and the possibilities to overcome them have been specified. The role of vertical integration in the creation of value-added products has been discovered.

JEL Codes: Q02, Q13, M13.

Keyword(s): marketing chain, value-added products, vertical integration


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.