Fine Electronics is a corporation that controls all aspects of its business such as extracting raw materials, manufacturing the products, distributing them, and finally marketing to customers. It manages these activities through several business units, where one unit provides inputs to the other. This is an example of
A) unrelated diversification.
B) vertical integration.
C) strategic flexibility.
D) franchising.

Question

Quizplus · Accepted Answer

This scenario describes vertical integration, where a company controls its entire supply chain, from raw materials to marketing to customers. Unrelated diversification involves a company expanding into unrelated industries, whereas strategic flexibility refers to the ability to adjust to changing market conditions. Franchising involves a business model where a franchisee uses the franchisor's brand name and system in exchange for a fee or percentage of sales.

Fine Electronics Is a Corporation That Controls All Aspects of Its