For a backward vertical integration strategy into the business of suppliers to be viable and profitable, a company must possess
A. a distinctive competence in production process technology and at least a core competence in manufacturing R&D.
B. large state-of-the-art production facilities so that it can fully capture all economies of scale in producing parts and components.
C. excess production capacity so that it has an ample in-house ability to undertake additional production activities.
D. considerable expertise in supply chain management, transportation logistics, and inventory control techniques.
E. the capability to achieve the same scale economies as outside suppliers and also match or beat suppliers' production efficiency with no drop in quality.
Answer: E
You might also like to view...
Types of Audit Opinions What are the five basic types of financial statement audit reports?
In 2009 the Coca-Cola Company introduced the "Freestyler," a new freestanding soda dispenser where consumers can choose from over 120 different types of soda and customize their drinks. Freestylers would take the place of typical dispensers where there are only a few different types of soda brands available. In order to develop the new dispenser, Coca-Cola collected information on the soda-drinking habits of individuals in several different age groups, as well as information about new technologies for dispensing liquids from vending machines and the sales of its "fountain" syrup for national restaurant chains to use in their soda machines. Coca-Cola's collection of this information is an example of _____ while the assessment of its impact on the potential for the new "Freestyler" is
an example of _________ A. environmental scanning; environmental analysis B. an environmental force; environmental scanning C. environmental analysis; environmental strategy D. strategizing; environmental scanning E. strategic management; environmental scanning
Answer the following statements true (T) or false (F)
1. People from collectivist cultures tend to apply a forcing style of conflict with colleagues more than do people from individualist cultures. 2. Creating common experiences for all employees would help organizations reduce organizational conflicts. 3. Resolving differences with the opposing party through direct communication is not as comfortably applied in collectivist cultures. 4. Buffers tend to resolve conflict by reducing the level of interdependence between the conflicting parties. 5. Integrators have direct authority over the departments they integrate and they rely on legitimate power to manage conflict and accomplish the work.
A promissory note must be signed by the maker of the note.
Answer the following statement true (T) or false (F)