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)to arm's length relationships (outsource)?

Question

Quizplus · Accepted Answer

Coordination is an important strategic characteristic to consider when deciding how supplier relationships should be structured. The level of coordination required between the firm and its suppliers will depend on factors such as the complexity of the product, the degree of customization required, and the importance of timely delivery. Vertical integration may be preferred when tight coordination is required, while arm's length relationships may be more appropriate when coordination requirements are low. Cost, location, and investment are also important considerations, but they are not the strategic characteristic mentioned in the question.

Which of the Following Is One of the Strategic Characteristics