Which of the Following Is Not a Strategic Disadvantage of Vertical

question 9

Multiple Choice

Which of the following is not a strategic disadvantage of vertical integration?

• A)Vertical integration boosts a firm's capital investment in the industry,thus increasing business risk if the industry becomes unattractive later.
• B)Integrating backward into parts and components manufacture can impair a company's operating flexibility when it comes to changing out the use of certain parts and components.
• C)Vertical integration limits a company's ability to achieve greater product differentiation and to exercise direct control over the costs of performing value chain activities.
• D)Forward or backward integration often calls for radically different skills and business capabilities than the firm possesses.
• E)Vertical integration poses all kinds of capacity-matching problems.

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Definitions:

Feeling Upset

A general term for experiencing negative emotions such as sadness, anger, or frustration that might be temporary and triggered by specific events.

Decatastrophizing

A cognitive behavioral therapy technique that involves challenging and changing irrational beliefs regarding the catastrophic outcomes of an event.

Cognitive Therapist

A mental health specialist focused on identifying and correcting negative or distorted thinking patterns, beliefs, and attitudes.

Worst Case Scenario

Considering the most severe or unfavorable outcome in a situation, often used as a cognitive technique to manage anxiety.