Identify and evaluate benefits and risks of vertical integration. ¦ Benefits of vertical…

Identify and evaluate benefits and risks of vertical integration.

■ Benefits of vertical integration include securing critical supplies and distribution channels, lowering costs, improving quality, facilitating scheduling and planning, and facilitating investments in specialized assets.

■ Risks of vertical integration include increasing costs, reducing quality, reducing flexibility, and increasing the potential for legal repercussions.

 

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