A firm sources intermediate goods and components from in-house suppliers as well as outside suppliers.In a similar fashion,another firm sells its products through company-owned retail outlets and through independent retailers.Both of these examples demonstrate
A) strategic outsourcing.
B) strategic insourcing.
C) backward horizontal integration.
D) taper integration.

Question

Quizplus · Accepted Answer

Both of these examples show taper integration. This type of integration is a way of orchestrating value activities in which a firm is either backwardly integrated and also relies on outside-market firms for some of its supplies or is forwardly integrated and also relies on outside-market firms for some if its distribution.

A Firm Sources Intermediate Goods and Components from In-House Suppliers