A decision to opt for vertical integration or external sourcing:
A)Can easily be reversed, so should not take up too much managerial time
B)Can be made easier by simply opting for both
C)Should be considered rationally by senior managers, both from a long-term financial and a strategic perspective
D)Should be trusted to external consultants who understand the theory better

Question

Quizplus · Accepted Answer

A decision to opt for vertical integration or external sourcing is a critical strategic decision that can impact the company's long-term financial performance. It is important for senior managers to evaluate the decision rationally and from a strategic perspective. This should take into consideration factors such as cost, risk, scalability, and competitive advantage. Simply opting for both can also be a valid option, but it depends on the specific circumstances of the company. Trusting the decision to external consultants may not always be the best choice, as they may not fully understand the company's unique situation and strategic goals.

A Decision to Opt for Vertical Integration or External Sourcing