________ is the extent to which a firm's internal activities encompass one, some, many, or all of the activities that make up an industry's entire value chain system.

Question

Quizplus · Accepted Answer

Vertical scope refers to the breadth of a firm's internal activities within an industry's value chain system. It is the degree to which a company owns or controls the stages of the production process, from raw materials to distribution. A firm with a high vertical scope performs many of the industry's value chain activities in-house, while a firm with a low vertical scope outsources most of the activities to third-party suppliers. Therefore, vertical scope is the most appropriate choice for this definition.

________ Is the Extent to Which a Firm's Internal Activities