Question at position 10 Companies today are focused on vertical integration encompassing the ownership and coordination of all supply chain activities while also outsourcing their core competenciesTrueFalse

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BlackTom AI · Accepted Answer

In this item, we’re evaluating statements about how modern supply chains are managed.
Option 1: True. The claim suggests that companies always pursue vertical integration by owning and coordinating all supply chain activities while also outsourcing their core competencies. In reality, firms often balance integration with selective outsourcing; vertical integration across all activities is not universal, and core competencies are sometimes kept in-house while other activities are contracted out. This makes the statement overly absolute and therefore inaccurate in many real-world contexts.
Option 2: False. This option aligns with the common understanding that firms pursue a mix of strategies: they may vertically integrate some stages to control critical workflows, but they also outsource or contract out other activities to leverage external specialization and flexibility. The coexistence of ownership and coordination of some supply chain activities with outsourcing others reflects contemporary practice in supply chain management, making this statement correct in a nuanced sense.
Option 1 is incorrect because it implies an all-encompassing approach to integration, which is rarely the standard across industries. It ignores the strategic reasons firms might choose to outsource non-core or non-critical activities. Option 2 is correct because it captures the common reality of hybrid strategies in supply chains, combining both integration and outsourcing as appropriate to the firm’s goals and capabilities.

Question at position 10 Companies today are focused on vertical integration encompassing the ownership and coordination of all supply chain activities while also outsourcing their core competenciesTrueFalse

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Question at position 10 Companies today are focused on vertical integration encompassing the ownership and coordination of all supply chain activities while also outsourcing their core competenciesTrueFalse

View Explanation

Log in for full answers

Similar Questions

Starbucks is analyzing how to strengthen its supply chain sustainability goals by sourcing directly from coffee farmers instead of regional brokers. While this increases control and transparency, it also adds complexity and risk. Which strategic framework best supports this decision?

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Question at position 38 Backward Vertical Integration refers to a company acquiring one or more of their customer organizations.TrueFalse

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For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company

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Question at position 7 When Luckin acquires coffee farms to secure its bean supply, this is an example of:Market diversificationforward integrationHorizontal integrationvertical integration

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Part 1What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor?Part 2 A. vertical integration B. horizontal integration C. virtual companies D. outsourcing