Unbalanced capacities that limit cost savings,difficulties in combining specializations,and reduced flexibility are disadvantages associated with
A) strategic alliances.
B) vertical integration.
C) horizontal integration.
D) divestiture.

Question

Quizplus · Accepted Answer

The risks of vertical integration include costs and expenses associated with increased overhead and capital expenditures, loss of flexibility resulting from large investments, problems associated with unbalanced capacities along the value chain, and additional administrative costs associated with managing a more complex set of activities.

Unbalanced Capacities That Limit Cost Savings,difficulties in Combining Specializations,and Reduced