Why Did Some Car Manufacturers Withdraw from Forward Integration in the Late

question 46

Multiple Choice

Why did some car manufacturers withdraw from forward integration in the late 1990s?

• A) Because their loss of value links did not outweigh the benefits in capabilities.
• B) Because their lack of capabilities did not outweigh the benefits in value links.
• C) Because their loss of value links did not outweigh the loss of benefits in capabilities.
• D) Because the level of synergy was too high.

---

Definitions:

Prior Service Credit

A pension plan feature that grants employees credit for service periods before the commencement of the pension plan, affecting their benefits.

Defined Benefit Pension Plan

A retirement plan where the benefits that an employee will receive upon retirement are defined based on a formula considering factors such as salary history and duration of employment.