For Backward Vertical Integration into the Business of Suppliers to Be

Multiple Choice

For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company

A) must first be a proficient manufacturer.
B) must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality.
C) must have excess production capacity so that it has an ample in-house ability to undertake additional production activities.
D) needs to have a wide product line, so it can supply parts and components for many products.
E) should have a distinctive competence in production process technology and at least a core competence in manufacturing R&D.