Shaw Industries,a Giant Carpet Manufacturer,increases Its Control Over Raw Materials

question 60

Multiple Choice

Shaw Industries,a giant carpet manufacturer,increases its control over raw materials by producing much of its own polypropylene fiber,a key input to its manufacturing process.This is an example of _______________.

• A) using related diversification to achieve value by pooling negotiating power to achieve market power
• B) using related diversification to achieve value by leveraging core competencies to achieve economies of scope
• C) using related diversification to achieve value by integrating vertically in order to acquire market power
• D) using related diversification to achieve value by integrating vertically in order to attain economies of scope

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Definitions:

Curse Of Knowledge

A cognitive bias that occurs when an individual, knowing something, finds it hard to think about the subject from the perspective of someone less knowledgeable.

Susceptibility

The likelihood or tendency to be influenced or harmed by a particular thing or condition.

Egocentrism

The inability to differentiate between self and other, often resulting in viewing the world solely from one's own perspective.

Conservation

The understanding that certain properties of an object or substance remain the same even when its appearance changes, a concept grasped during the concrete operational stage in Piaget's theory of cognitive development.