A firm purchasing a key supplier to strengthen its value chain is an example of _____.
A) process variance
B) vertical integration
C) offshoring
D) suboptimization

Question

Quizplus · Accepted Answer

Vertical integration is the acquisition of a company that operates within the same industry and value chain to strengthen a firm's position and control over the supply chain. This can lead to cost savings, increased efficiency, and better coordination of activities in the value chain. The other options - process variance, offshoring, and suboptimization - do not relate to this scenario.

A Firm Purchasing a Key Supplier to Strengthen Its Value