Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Strategy#4
| Question | Answer |
|---|---|
| When do we 1,Internalize 2,Outsource | 1,Internalize when Transaction costs are higher than administration costs 2,Outsource when administration costs are higher than transaction costs |
| What determines administrative costs of the firm | Scope= the number & variety of transactions incorporated into the firm |
| What is vertical integration (3) | 1, ownership of vertically related activities 2,forward intergration=intergration closer to customers´ activities 3,backward intergration= intergration closer to suppliers´ activities |
| What are benefits of vertical integration (2) | 1,Technical economies (transport costs, multiple use of inputs,.etc..) 2,Avoidance of transaction costs caused by market contracts |
| What do costs of vertical integration depends on (5) | 1,difference of optimal scales between supplier & business customers 2,differences in managing different businesses 3,competitive effects 4,need for flexibility 5,unattractive industry (low-margin) |
| What are types of vertical integration (3) | 1,Long-term contracts 2,Vertical partnership |
Created by:
semester1.IBWL
Popular Business sets