For Backward Vertical Integration into the Business of Suppliers to Be

question 101

Multiple Choice

For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company

• A)must first be a proficient manufacturer.
• B)must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality.
• C)must have excess production capacity so that it has an ample in-house ability to undertake additional production activities.
• D)needs to have a wide product line, so it can supply parts and components for many products.
• E)should have a distinctive competence in production process technology and at least a core competence in manufacturing R&D.

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Definitions:

Upright Mobility

The ability to move or walk in an upright position.

Correlated

When two or more variables or sets of data have a mutual relationship or connection, where changes in one are associated with changes in the other.

Brain Size

Refers to the overall volume or mass of the brain, variably related to body size, cognitive abilities, and evolutionary adaptations.

Species-Typical Behavior

Behavior that is characteristic of all members of a species, such as walking in salamanders.