«I | » Moving to another question will save this response. Question 11 1 points
ID: 330004 • Letter: #
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«I | » Moving to another question will save this response. Question 11 1 points Save Answer Scooping Liquid Gold (our ice cream store) is thinking about acquiring one of its suppliers--a producer of gold flakes. Which of the following factors should be considered in making this decision? (select all that apply) Whether or not owning the supplier will be a distraction from operating the ice cream store's core business O The organizational culture of the supplier O How much it would cost for an in- house gold flake production solution The supplier's production capacity OHow many gold flakes the ice cream store thinks it will need in the future The price to buy the supplierExplanation / Answer
Answer 11:
Backward integration is a form of vertical integration that involves the acquiring of, or merger with, suppliers up the supply chain. Companies follow backward integration when it is estimated to result in improved efficiency and cost savings. This can result in improved profit margins, lower costs (transportation etc.) and increase overall competitiveness of the company in the marketplace. Following factors are important when making this decision.
1. Cost: Cost of making product in-house should be lower than the cost of purchasing the product in the market.
2. Scope: While adopting integration strategies, a company's core competencies must not be diluted. It should increase company's ability to produce at lower cost with improved quality and efficiency.
All options in the question apply for making this decision.
Answer 20: the number of servers on duty.
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