In the Context of the Primary Reasons for Vertical Integration

question 22

Multiple Choice

In the context of the primary reasons for vertical integration in companies, which of the following statements is true of coordination?

• A)The greater the interdependence between activities, the more a company should vertically integrate.
• B)Activities that require high levels of coordination are known to be modular in nature.
• C)The greater the interdependence between activities, the more a company should rely on outsourcing.
• D)Activities that require low levels of coordination are known to be reciprocal in nature.

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Definitions:

Kaizen

A Japanese philosophy that focuses on continuous improvement in all aspects of life, including business and manufacturing processes.

Nadler-Tushman Model

A framework for diagnosing organizational behavior and performance, focusing on the interactions among strategy, structure, and organizational processes.

Organizational Change

The process through which companies or institutions modify existing processes, culture, or structures to achieve new objectives or improve performance.

Structure Change

Modifications or alterations in the organizational architecture, including reshaping departments, authority lines, and job roles to improve efficiency or adapt to new strategies.