Question

Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input into its manufacturing process. This is an example of ________.a. Leveraging core competencies b. Sharing activities c. Vertical integration d. Pooled negotiating power

Answer 1

Answer:

c. Vertical integration

Explanation:

Vertical integration is a strategy in which a manufacturing entity owns or controls its channel of raw materials supply or products required, distribution chain, or retail locations to control its supply chain.

It affords the company some form of advantage by allowing them control the process, reduce costs, and improve efficiencies.

As such, where Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input into its manufacturing process.

This is an example of Vertical integration.