A government oil company is having trouble with the private refineries and transporters to whom it delegates important stages of production.It decides to become more active along the entire supply chain from locating deposits to retailing the fuel to consumers.Which of the following does it intend to achieve?
A) Outsourcing
B) Economies of scale
C) Increase inputs
D) Advanced production technology
E) Vertical integration

Question

Quizplus · Accepted Answer

The government oil company intends to achieve vertical integration, which involves the company taking control over various stages of the supply chain, from locating deposits to retailing fuel to consumers. This allows the company to have greater control over the production process and potentially reduce costs by eliminating the need for outsourcing to private refineries and transporters.

A Government Oil Company Is Having Trouble with the Private