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Consider the Following Statements

question 11

Multiple Choice

Consider the following statements:
I.A vertically integrated firm is more dependent on its suppliers than a firm that is NOT vertically integrated.
II.Many firms feel they can control quality better by making their own parts.
III.A vertically integrated firm realizes profits from the parts it is "making" instead of "buying" as well as profits from its regular operations.
Which of the above statements represent advantages to a firm that is vertically integrated?


Definitions:

Performance Management

A systematic process by which an organization involves its employees in improving organizational effectiveness in the accomplishment of the organization's mission and goals.

Functional Fit

A measure of how well a particular strategy, process, or system suits the operational needs of an organization.

Concept Of Fit

The degree to which an individual's skills, values, and interests align with the culture and requirements of an organization or a specific job.

Strategic Framework

An overarching structure that guides the planning and decision-making processes within an organization.

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