A Strategy of Vertical Integration Can Have Both Important Strengths

question 22

Multiple Choice

A strategy of vertical integration can have both important strengths and weaknesses depending on all of the following,EXCEPT:

• A) whether it can limit the performance of strategy-critical activities in ways that increase cost,build expertise,protect proprietary know-how,or increase differentiation.
• B) the impact on investment costs,flexibility,and response times.
• C) the administrative costs of coordinating operations across more vertical chain activities.
• D) how difficult it will be for the company to acquire the set of skills and capabilities needed to operate in another stage of the vertical chain.
• E) whether competitors outsource any of their value chain activities.

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Definitions:

Cation

Positively charged ion that is formed when an atom loses one or more electrons.

Valence Shell

The outermost shell of an electron orbiting the nucleus of an atom, determining the atom's chemical properties and reactivity.

Anion

A negatively charged ion, which forms when an atom or molecule gains one or more electrons.

Chemical Elements

Substances that cannot be broken down into simpler substances by chemical means, consisting of atoms with the same number of protons.