Vertical integration means:

Question

BlackTom AI · Accepted Answer

In this question about vertical integration, we need to assess what each option implies about how a business organizes its production and supply chain.
Option a: 'Outsourcing all operations' would mean transferring production activities to external suppliers. This is the opposite of vertical integration, which involves internalizing stages of production within the same firm. So this choice describes outsourcing, not vertical integration.
Option b: 'Focusing only on core competencies' suggests a strategic narrowing of activities to what the firm does best, often accompanied by outsourcing or partnerships for other tasks. While related to strategic focus, it does not define vertical integration because vertical integration requires ownership or control of multiple stages in the production process, not just a focus on core activities.
Option c: 'Expanding horizontally into new markets' refers to horizontal growth—adding more of the same stage of production or product lines at the same level, or expanding market presence—rather than controlling multiple stages of production from raw materials to finished goods. This is about market expansion or product line diversification, not vertical integration.
Option d: 'Owning and controlling successive stages of production' captures the essence of vertical integration, which means the firm owns multiple steps in the production chain, potentially from suppliers to manufacturers to distributors. This arrangement reduces transaction costs, improves coordination, and can buffer against external supplier risks.
So, each incorrect option describes a strategy that differs from vertical integration, while option d aligns with the core concept of owning and controlling successive production stages.

Dashboard Quiz #1A (Lecture 1-3) Late Submissions and Approved AC Only

Vertical integration means:

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Dashboard Quiz #1A (Lecture 1-3) Late Submissions and Approved AC Only

Vertical integration means:

查看解析

登录即可查看完整答案

类似问题

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?

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

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

The best reason for investing company resources in vertical integration (either forward or backward) is to

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

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

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

更多留学生实用工具

希望你的学习变得更简单

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