Vertical integration is a strategy in which a company expands backwards into an industry that provides outputs for its products.
Usha Martin followed this strategy by: a. aking coal and then starting to make wire ropes.
b. making wire ropes and expanding to make the steel for the ropes.
c. implementing coal mining and then starting to make steel.
d. making steel and expanding to making the wire ropes out of it.
The correct answer is letter "B": making wire ropes and expanding to make the steel for the ropes.
Explanation:
Indian company Usha Martin Ltd. manufactures wires and steel to be traded worldwide. Usha Martin operations are centralized from is headquarters from where it designs, cuts, manufactures and distributes steel. The company acquires raw material on its own through coal mining to later be sent to its power plant where the mineral is produced until it is transformed for sale.
<em>By making wire ropes, expanding to steel ropes while having full control of all the production operations, Usha Martin is implementing a vertical integration.</em>
Payback method is a simple accounting method used to projects incoming cash flows from a given project and identifies the break even point between profit and paying back invested money for a given process.
Rare resources are unique resources that is not controlled or possessed by many competing firms. Only a small number of competing companies control it. It usually stands out by being distinctive among the set of future competitors. Rare resources are short in supply and capable of persisting over an extended time, this makes it a source of competitive advantage for a company.
B. any experience with the product they wish to purchase
Explanation:
Since Manitoba University is completely new and that it do not have any information about the Communication system as of ATV.
As she wants to acquire the Manitoba bid she needs to provide thorough information and that the university is completely new, accordingly there is a clear demonstration required, for the service.
The university do not know the facts and is dealing in these things first time and because of that it is necessary.
