The Industry-Based View Recommends

question 16

Essay

The industry-based view recommends:
a. Backward integration as a way to defend against the power of suppliers.
b. Backward integration as a way to defend against the power of buyers.
c. Forward integration as a way to defend against the power of suppliers.
d. Forward integration as a way to defend against the power of buyers.
e. Backward or forward integration as a way to defend against the power of suppliers and buyers.

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Definitions:

Cost-Plus Approach

A pricing tactic that involves setting a sales price by adding a predetermined margin to the cost of the product.

Administrative Expenses

Costs related to the general management and administration of a company, such as salaries of executive officers and costs of general services.

Normal Levels

Standard measurements or averages that are considered typical or expected within a specific context, such as production, performance, or inventory levels.

Cost-Plus Approach

A pricing strategy where a fixed percentage or amount is added to the cost of producing a product or service to determine its selling price.