Backward Integration Is Effective in All of These Cases EXCEPT

question 76

Multiple Choice

Backward integration is effective in all of these cases EXCEPT

• A) when an organization competes in an industry that is growing rapidly.
• B) when an organization has both capital and human resources to manage the new business of supplying its own raw materials.
• C) when an organization needs to acquire a needed resource quickly.
• D) when the advantages of stable prices are not particularly important.
• E) when present suppliers have high profit margins.

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Definitions:

Human Resources

The department within an organization that focuses on recruitment, management, and guidance for the people who work in the organization.

Downsizing

The process of reducing the number of employees within an organization for economic or strategic reasons.

Restructuring

The corporate action of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized for its present needs.

Insidious Consequences

Negative outcomes that gradually and subtly develop over time, often as a result of certain actions or decisions.