Vertical Integration Can Be Risky When Demand Is Unpredictable Because

question 1

True/False

Vertical integration can be risky when demand is unpredictable because it is hard to manage the volume or flow of products along the value-added chain.

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Definitions:

Groupthink

A psychological phenomenon where the desire for harmony and conformity in a group leads to irrational and dysfunctional decision-making outcomes.

Stereotyping

The act of categorizing individuals into groups and attributing specific characteristics to them without acknowledging individual differences, often leading to oversimplified perceptions.

Groupthink

An occurrence within groups where the suppression of dissenting viewpoints and the pressure to conform lead to a decrease in critical evaluation of decisions.

Rational Decision

The process of making choices based on logical reasoning, often involving weighing the benefits and drawbacks of different options.