The more an organization pursues vertical integration the larger it becomes, and the bureaucratic costs associated with managing the strategy rise sharply.

Question

Quizplus · Accepted Answer

Vertical integration involves an organization taking ownership or control over its supply chain, which typically leads to expansion and increased size. However, as the organization becomes larger, the burden of managing the various components of the supply chain also increases, resulting in higher bureaucratic costs.

The More an Organization Pursues Vertical Integration the Larger It