A Strategy of Vertical Integration Can Have Substantial Drawbacks,including

question 49

Multiple Choice

A strategy of vertical integration can have substantial drawbacks,including:

• A) whether horizontal integration can limit the performance of strategy-critical activities in ways that increase cost,build expertise,protect proprietary know-how,or increase differentiation.
• B) raising the firm's capital investment in the industry and increasing business risk,as well as providing less flexibility in accommodating shifting buyer preferences by locking the firm into relying on its own in-house activities.
• C) the environmental costs of coordinating operations across vertical chain activities.
• D) the ease to manage a set of skills and capabilities needed to operate in another stage of the vertical chain.
• E) the difficulties faced in entering outside vertical and horizontal markets.

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Definitions:

Neural Connections

The links between neurons (nerve cells) in the brain and nervous system that facilitate the transmission of signals and the processing of information.

Infant Brains

The developing neurological structures and cognitive functions in babies.

Brain Adaptability

The capacity of the brain to modify its structure and function in response to changes in the environment, learning, or damage, also known as neuroplasticity.

Double-Edged Sword

A situation or decision that has both positive and negative consequences or effects.