For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company

Question

TuteeHUB · Accepted Answer

Must have excess production capacity, so that it has ample in-house ability to undertake additional production activities

TuteeHUB · Answer

Must first be a proficient manufacturer

TuteeHUB · Answer

Must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality

TuteeHUB · Answer

None of these

1.	For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company
A.	Must first be a proficient manufacturer
B.	Must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality
C.	Must have excess production capacity, so that it has ample in-house ability to undertake additional production activities
D.	None of these
Answer» C. Must have excess production capacity, so that it has ample in-house ability to undertake additional production activities

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