Vertical Integration May Afford Flexibility in Responding to Uncertain Demand

question 28

Multiple Choice

Vertical integration may afford flexibility in responding to uncertain demand when

• A)the firm has built a capability to respond speedily in a coordinated fashion.
• B)the firm maintains spare capacity, and can bear spare capacity.
• C)the market cannot respond as quickly, or capacity is unavailable.
• D)all of the above.

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Definitions:

Skills And Abilities

The competencies and capabilities that enable an individual to perform tasks and activities to a certain standard.

Forecasting Human Resources

involves predicting an organization's future workforce needs to ensure it has the right number of employees with the necessary skills.

Organizational Objectives

The goals or targets that a company aims to achieve, which guide its operational and strategic activities.

Business Cycles

Business cycles refer to the fluctuations in economic activity that an economy experiences over a period, characterized by expansion and contraction phases.