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:

Islet Cells

Specialized cells found in the pancreas that produce hormones like insulin and glucagon, which regulate blood sugar levels.

Adrenal Cortex

Outer portion of adrenal gland; secretes the hormones aldosterone and cortisol.

Pancreas

An organ in vertebrates, including humans, involved in the digestion process and insulin production.

Endocrine System

Organ system that coordinates responses among cells of an animal body by means of hormones.