Why did business leaders begin the practice of vertical integration?
A. Big companies could grow by merging with other companies or acquiring them
B. Factory workers could start in low positions and work their way up to management
C. Large corporations couldn’t control the cycle of a product from creation to sale
D. Small companies could grow so that they could compete with the larger companies ******
Please help
To determine why business leaders began the practice of vertical integration, we need to analyze each option and see which one aligns with the reasons behind this practice:
Option A: Big companies could grow by merging with other companies or acquiring them
This option suggests that one reason for vertical integration was the ability of large companies to expand their operations by merging with or acquiring other companies. While this is a valid point, it doesn't specifically address the concept of vertical integration.
Option B: Factory workers could start in low positions and work their way up to management
This option is unrelated to vertical integration. It focuses on the career progression of factory workers rather than the strategic decisions made by business leaders.
Option C: Large corporations couldn’t control the cycle of a product from creation to sale
This option indicates a key reason behind vertical integration. Large corporations often want to maintain control over different stages of production, from creating a product to selling it. Vertical integration allows them to bring various aspects of the supply chain under the same company's ownership, enabling more control and efficiency.
Option D: Small companies could grow so that they could compete with the larger companies
This option suggests that small companies can utilize vertical integration to grow and compete with larger companies. While it is true that vertical integration can be a growth strategy for smaller companies, it does not explain why business leaders originally started the practice.
Based on the analysis, the most appropriate answer is C. Large corporations sought to control the entire cycle of a product, from its creation to its sale, which led to the adoption of vertical integration as a strategic practice.
No idea, but you may find some ideas in here:
https://www.google.com/search?q=vertical+integration+in+business&oq=vertical+integration+in+business&aqs=chrome..69i57j69i60.3666j0j7&sourceid=chrome&ie=UTF-8