Backward integration is effective in all of these except
A)when present suppliers have high profit margins.
B)when an organization has both capital and human resources to manage the new business of supplying its own raw materials.
C)when an organization needs to acquire a needed resource quickly.
D)when an organization competes in an industry that is growing rapidly.
E)when the advantage of stable prices are not important.

Question

Quizplus · Accepted Answer

Backward integration is not effective when stable prices are not important because one of the benefits of backward integration is to stabilize supply costs.

Backward Integration Is Effective in All of These Except