Business Middle School

According to the value chain business model, what are the various strategic decisions that a business can make?

According to the value chain business model,(blank) a. Horizontal b. Forward c. Vertical

integration involves a business taking over a competitor that operates at the

same stage in the value chain.

(Blank) a. Horizontal b. Backward c. Forward Integration refers to a business's expansion in previous stages of a value chain.

Answers

Answer 1

According to the value chain business model, blank a. Horizontal b. Forward c. Vertical are the various strategic decisions that a business can make.

What is a value chain business model?

Value chain business model is the process of transforming the business model or idea into the real process that comes into reality. It allows maximizing the efficiency of the quality of the product and business so that it can deliver the best.

Thus, option A is correct.

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Answer 2

According to the value chain business model, a horizontal type of integration is the one that involves a business taking over a competitor that operates at the same stage in the value chain.

Horizontal integration aims to consolidate market share, increase economies of scale, decrease competition, and gain more control over the industry. The company can thus expand its presence in the market. It does so by combining with or acquiring a direct competitor, which will allow the business to capture a larger market share.  Thus, a. horizontal would be the answer you are looking for.

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Related Questions

Which of the following is not a barrier to entry?
A) an inelastic demand curve
B) economies of scale
C) ownership of a key input
D) a patent

Answers

Answer:

A

Explanation:

An inelastic demand curve is not a barrier to entry. Thus, option (a) is correct.

What is demand?

The term “demand” is relying on people needs and wants to the amount of goods and services. Demand is an economic notion that deals with the connection between consumer demand for goods and services and their market prices.

According to the inelastic demand curve, entrance is not a barrier. In visual representations, the curve for a relatively elastic commodity is portrayed as a continuous line because the demand increases is equal at any price. When a buyer's demand for a particular item does not fluctuate as much as its price does, this is referred to as inelastic demand.

As a result, an inelastic demand curve is not a barrier to entry. Therefore, option (a) is correct.

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