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What do believe is the best option for general motors

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Reference no: EM132911356

In some cases, one of the purposes of initiating a business combination is to control your value chain through vertical integration.

Consider the following two independent scenarios:

  1. General Motors relies on an unrelated company for a key component
  2. General Motors relies on a vertically integrated subsidiary for a key component. Discuss the pros and cons of both scenarios. Specifically, address how a subsidiary that provides products only to the parent can be fairly evaluated on performance.

Problem 1: What do you believe is the best option for General Motors? Explain.

Reference no: EM132911356

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