MGT603 Strategic Mgt 2nd GDB - VUsolutions

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Last Date 2nd February 2010



Mr. Ali is a vehicle manufacturer, he buys tires from a tire manufacturer and has to bear extra cost. But if he produces his own tires, he can reduce costs and get improved quality. Being a manager, which integrative strategy would you recommend and why?


Solutions:




As a manager of the firm I shall adopt Backward Integration policy since the cost of buying tires from the market is too high. This would give the firm a competitive edge by reducing cost and improving quality.
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