Select all that applyWhen there are improvements in technology at the supply stage of the value chain, a vertically integrated companyMultiple select question.may be required to incur high costs for abandoning old technologies in an effort to keep pace with suppliers.is likely to improve customer service by relying on older plants and technologies.will likely be in a good position to shop the market and purchase optimal products from suppliers.may need to continue producing suboptimal products rather than upgrading its technology.

Which statement about entering the supply stage of the value chain as part of a vertical integration strategy is true?Multiple choice question.Matching a supplier's production efficiency often requires significant investment in research and development.Companies that enter the supply stage of the value chain are likely to face few difficulties keeping pace with changes in technology.Most companies that enter the supply stage of the value chain have greater production capacity than existing suppliers.Matching a supplier's production efficiency is among the least challenging obstacles to backward integration.

When companies pursue operations that require new capabilities,Multiple choice question.they are likely to find that new businesses across the value chain have the same success factors as their core operation.they are unlikely to experience difficulties realizing early profits from the new operations.they may find that the new operations require skills that the company lacks.they are likely to enhance their capacity to keep pace with changes in technology.

In some cases, backward vertical integration can increase efficiency byMultiple choice question.improving the competitive position of existing suppliers in the value chain.giving a company proprietary knowledge that is expensive to keep from rivals.coordinating production flows and preventing bottlenecks.allowing a company to outsource activities that are too costly to perform in-house.

When buyer preferences shift, a vertically integrated companyMultiple choice question.may have difficulty adjusting its product lines to meet new demand.will likely face minimal costs in altering its equipment and facilities to make new products.may decide to abandon agreements with suppliers and distributors and rely on its in-house capabilities.will likely be in a good position to negotiate a mutually beneficial contract with a new supplier.

Companies can reduce costs associated with a value chain system byMultiple choice question.replacing direct shipments with warehousing.hiring extra temporary employees.eliminating unnecessary steps.shifting centralized activities to individual stores.