Question

kyle chem inc., a multinational company, manages all its value chain processes within the organization instead of contracting out the wor
other specialized firms. the given scenario best exemplifies _.
o a. offshoring
b. vertical integration
c. aggregate planning
d. outsourcing

Explanation:

• Option a: Offshoring involves relocating business processes to a different country, which is not related to managing value chain processes within the organization.
• Option b: Vertical integration is when a company manages its entire value chain (instead of contracting out) to have control over production processes, matching the scenario.
• Option c: Aggregate planning is about balancing supply and demand for production, not about internal vs. contracted value chain management.
• Option d: Outsourcing is contracting work to external firms, which is the opposite of what the company is doing here.

Answer:

b. vertical integration