The manager of View Your World, a high- end window manufacturer, notices that the cost to distribute their windows in the spot market has risen. As a result of the change, which of the following is true?
A)The manager has more of an incentive to integrate backward.
B)The manager has less of an incentive to integrate backward.
C)The manager has more of an incentive to integrate forward.
D)The manager has less of an incentive to integrate forward.

Question

Quizplus · Accepted Answer

If the cost to distribute their windows in the spot market has risen, it would be advantageous for the manager of View Your World to integrate forward, meaning they would invest in facilities to manufacture and distribute their windows themselves. This would allow them to have more control over the distribution process and potentially save money on distribution costs. Integrating backward, meaning to invest in suppliers and raw materials, would not be as beneficial in this situation, as it does not directly address the increased cost of distribution.

The Manager of View Your World, a High- End Window