Which of the following statements is true of taper integration?
A) It is the most integrated alternative to performing an activity within one's own corporate family.
B) It refers to a situation in which firms narrow their focus on downstream value chain activities and ignore the upstream value chain activities.
C) It exposes in-house suppliers and distributors to market competition to make performance comparisons possible.
D) It does not rely on outside-market firms for its supplies.

Question

Quizplus · Accepted Answer

Taper integration exposes in-house suppliers and distributors to market competition so that performance comparisons are possible. Rather than hollowing out its competencies by relying too much on outsourcing, taper integration allows a firm to retain and fine-tune its competencies in upstream and downstream value chain activities.

Which of the Following Statements Is True of Taper Integration