For Backward Vertical Integration into the Business of Suppliers to Be

question 25

Multiple Choice

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

• A)have considerable expertise in supply chain management,transportation logistics,and inventory control techniques.
• B)be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop in quality.
• C)have large state-of-the-art production facilities so that it can fully capture all economies of scale in producing parts and components.
• D)have core competences in R&D,product design and engineering,and distribution logistics so that it will have adequate capabilities to produce and distribute parts and components in a timely and cost-effective manner.
• E)have a distinctive competence in production process technology and at least a core competence in manufacturing R&D.

---

Definitions:

Hypnosis

Hypnosis is a trance-like mental state in which people experience increased focus, concentration, and suggestibility.

Short-term Effects

Immediate or temporary outcomes or consequences of a behavior or action.

Long-term Effects

Consequences or impacts of an action, condition, or decision that appear or persist over a long period of time.

Sleep Deprivation

A condition resulting from inadequate quantity or quality of sleep, either voluntarily or involuntarily, leading to significant impairments in cognitive and physiological functions.