Which of the following is the primary disadvantage of backward and forward vertical integration?
A) increased bureaucratic costs
B) decreased product quality
C) decreased environmental richness
D) loss of control over inputs

Question

Quizplus · Accepted Answer

Backward and forward vertical integration often result in increased bureaucratic costs due to the need to manage more stages of the supply chain. However, this disadvantage may be offset by the benefits of increased control over the supply chain and improved efficiency. The other options (B, C, and D) are not primary disadvantages of vertical integration.

Which of the Following Is the Primary Disadvantage of Backward