Vertically Integrated Companies: 
An arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or service, and the products combine to satisfy a common need.
An example of this is PanAm Airlines, the giant airline company before it's collapse in 1991. They produced every aspect of the business: Manufacturing Planes, Engineers, Pilots, Flight Crews, and even made the food themselves. Vertically integrated companies have extremely high expenses. Staying lean is important to lower expenses, concentrate on their role, and stay in business. Airlines today are no longer vertically integrated. They hire flight crews from third party staffing companies; purchase food from food packaging services, and they no longer build the planes themselves. Essentially they've outsourced almost everything about their company operations to third parties so they can focus on their service of air travel. 

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