Chapter Questions
Under what conditions might horizontal integration be inconsistent with the goal of maximizing profitability
What is the difference between a company's internal value chain and the industry value chain? What is the relationship between vertical integration and the industry value chain?
Why was it profitable for $\mathrm{GM}$ and Ford to integrate backward into component parts manufacturing in the past, and why are both companies now buying more of their parts from outside suppliers?
What value creation activities should a company outsource to independent suppliers? What are the risks involved in outsourcing these activities?
What steps would you recommend that a company take to build mutually beneficial long-term cooperative relationships with its suppliers?