A Strategy of Vertical Integration Can Have Both Important Strengths

question 65

Multiple Choice

A strategy of vertical integration can have both important strengths and weaknesses and depends on:

• 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) All of these.

Comprehend the ways to transition from being in the out-group to the in-group.

Understand the applicability of LMX theory across different levels of an organization and its universal applicability.

Recognize the strengths and criticisms of LMX theory.

Understand the outcomes of high-quality exchanges between leaders and followers.

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Definitions:

Informal Fee

Charges or costs that are not officially sanctioned or documented, often occurring in informal or unregulated markets.

Confidential Documents

Papers or digital documents that contain sensitive information and are not to be shared with unauthorized persons.

Special-Interest Effect

The Special-Interest Effect is a phenomenon where a small group of individuals or entities, due to their strong interest, can influence legislation or regulations disproportionately to their size or importance in society.

Invisible Hand

A term coined by Adam Smith to describe how individuals' pursuit of self-interest in free markets leads to economic benefits for society as a whole.