For Backward Vertical Integration into the Business of Suppliers to Be

question 101

Multiple Choice

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

• A)must first be a proficient manufacturer.
• B)must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality.
• C)must have excess production capacity so that it has an ample in-house ability to undertake additional production activities.
• D)needs to have a wide product line, so it can supply parts and components for many products.
• E)should have a distinctive competence in production process technology and at least a core competence in manufacturing R&D.

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Definitions:

President Wilson

Refers to Woodrow Wilson, the 28th President of the United States (1913-1921), known for leading the country through World War I and advocating for the League of Nations.

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Sedition Act

Historical laws enacted by governments to prevent dissent against authority, typically covering actions such as speaking, writing, or organizing against the government.

Americanization

A cultural assimilation process by which people or groups adopt American attributes, including customs, culture, and language.