A Strategy of Vertical Integration Can Have Substantial Drawbacks, Including

question 25

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)loss of technological know-how.
• E)the difficulties faced in entering outside vertical and horizontal markets.

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Definitions:

Electrical Charge

A fundamental property of matter that leads to electromagnetic interactions, described in terms of positive or negative electrical energy.

Nodes of Ranvier

Gaps in the myelin sheath of nerve fibers, which play a critical role in the fast propagation of nerve impulses.

Myelinated Axon

A nerve fiber enveloped in a myelin sheath, which increases the speed and efficiency of electrical signal transmission.

Ion Channels

Protein structures embedded in cell membranes that allow ions to enter or leave a cell, critical for various biological processes including nerve impulse transmission and muscle contraction.