A Vertical Integration Strategy Can Expand the Firm's Range of Activities

question 65

Multiple Choice

A vertical integration strategy can expand the firm's range of activities

• A)backward into sources of supply and/or forward toward end users.
• B)backward into other industry business lines and/or forward to suppliers of raw materials.
• C)to enable the supply chain the opportunity for expansion.
• D)to complement the industry's horizontal value chain line of profitability.
• E)to establish full integration by participating in a tapered integration (without the outsourced and in-house activities).

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Definitions:

Product Distribution

The process of making a product available to the consumers through a chain of supply, involving transportation, warehousing, and retailing.

Sales Growth

An increase in sales revenue over a specified period, indicating the performance improvement and market acceptance of a company's products or services.

Value of The Business

The estimated overall worth of a business, considering factors such as assets, earnings, market position, and future prospects.

Strength of Relationship

The degree of trust, mutual respect, and commitment between individuals or organizations in a business context.