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:

Ordeal Therapy

A controversial psychological treatment method where the patient undergoes a difficult task or experience with the belief that surviving it will lead to a cure or improvement.

Contingency Management

A behavioral therapy technique that involves changing behavior by modifying the consequences, typically through rewards or punishments.

Contracting

The process of establishing a clear, mutual agreement between parties (e.g., therapist and client) outlining expectations, roles, and responsibilities.

Bowenian Family Therapist

A therapeutic approach based on the theories of Murray Bowen, focusing on family systems, patterns of interaction, and intergenerational transmission of behaviors and issues.