Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) and arm's length relationships (outsource)?

Question

Quizplus · Accepted Answer

Coordination is a key strategic characteristic that should be considered when deciding how supplier relationships should be structured on the continuum between vertical integration and arm's length relationships. The level of coordination required for a specific product or service will depend on factors such as complexity, customization, and innovation. In some cases, a high level of coordination may be required, making vertical integration the best choice, while in others, a lower level of coordination may be sufficient, making an arm's length relationship more appropriate. Cost, location, investment, and control are also important considerations but are not as directly related to the level of coordination required.

Which of the Following Is One of the Strategic Characteristics