Final answer:
Horizontal integration refers to a company acquiring another at the same level in the industry, as seen in Unilever's purchase of Ben & Jerry's. A hostile takeover is an acquisition against the management's wishes, which wasn't the case with Unilever and Ben & Jerry's. In contrast, a vertical merger combines companies at different production stages for increased efficiency.
Step-by-step explanation:
Horizontal integration and hostile takeover are both significant concepts in the field of business and corporate strategy. In the context of Unilever's acquisition of Ben & Jerry's, we can discuss these concepts more concretely. Horizontal integration refers to the process where a company acquires another company that operates at the same level of the value chain in an industry. For example, when Unilever, a major player in the consumer goods industry, acquired Ben & Jerry's, a well-known ice cream brand, Unilever consolidated its market position in this sector by adding a popular and established brand to its portfolio. This move could potentially draw the attention of antitrust authorities, given that horizontal mergers often face more scrutiny than vertical mergers since they combine direct competitors and can reduce competition in the market.
A hostile takeover, on the other hand, is characterized by the acquisition of a company against the wishes of the company's management and board of directors. This typically involves the acquiring company going directly to the shareholders to purchase their shares or engaging in other tactics to gain control against the management's desires. In the case of Ben & Jerry's, while the acquisition wasn't strictly hostile in nature, it was complex due to the founders' initial reluctance to lose the company's social mission in the face of corporate consolidation.
In contrast, a vertical merger involves the combination of companies that operate at different stages of the production process. Unlike horizontal integration, vertical mergers seek to increase efficiencies by bringing together different steps in the production or supply chain, thereby potentially safeguarding against the loss of suppliers and streamlining the manufacturing process.