In the context of the three Cs of vertical integration, under what conditions should a firm choose to engage in vertical integration?
A)When the firm lacks the capability to perform an activity better than other firms
B)When the firm is incapable of coordinating different activities within its departments
C)When the activities of the firm are conducted independently
D)When there is greater interdependence between the activities of the firm

Question

Quizplus · Accepted Answer

Vertical integration is most suitable when there is greater interdependence between the activities of the firm. This can lead to cost savings, improved efficiency, and better coordination between different departments. Vertical integration may not be necessary if the firm has the capability to perform an activity better than other firms or can coordinate its activities effectively.

In the Context of the Three Cs of Vertical Integration