Exam 4: Make Versus Buy Channel Analysis

ElectroInc,an electronics manufacturer,is considering the idea forward vertical integration.ElectroInc employees would make sales and fulfill orders in addition to manufacturing products.What is the primary risk that ElectroInc faces with vertical integration?

Franchising exhibits characteristics of a quasi-vertical integration.

All of the following are the major forms of company-specific distribution capabilities EXCEPT ________.

Briefly describe the two main circumstances in which vertical integration would be more appropriate than outsourcing.

Which of the following statements about outsourcing is most likely true?

According to the text,the purchase of Lens Crafters by Luxottica provided the manufacturer with an "observatory" to ________.

When a firm has highly valuable company-specific capabilities,vertical integration will LEAST likely result in ________.

Consolidation among manufacturers most likely leads to ________.

Charlton Manufacturing relies on manufacturers' representatives,independent wholesalers,and third-party retailers to perform channel functions.Charlton Manufacturing is most likely engaged in _________.

What is the LEAST likely risk associated with forward vertical integration?

Since upstream and downstream channel activities are so similar and conform to the same financial models,many firms decide to engage in vertical integration.

What conditions support a firm's decision to outsource channel functions? How does a firm benefit from outsourcing distribution activities?

All of the following are reasons to outsource channel functions to a third party EXCEPT the third party's ________.

The greater the value of company-specific capabilities,the greater the economic rationale for the manufacturer to vertically integrate.

The primary reason that Coca-Cola and PepsiCo initially outsourced product assembly to independent bottlers was to _________.

According to the text,the make-or-buy decision begins with the base case that ________.

Intermarché best serves as an example of a firm that has engaged in ________.

A firm should most likely outsource channel functions when the ________.

Which of the following best describes classical market contracting?

Which of the following would most likely lead to relational governance in a channel system?