How do you cope with environmental uncertainty and complexity in a vertically integrated firm?
Environmental uncertainty and complexity pose significant challenges for any business, but especially for those that are vertically integrated. Vertical integration means that a firm controls multiple stages of the production or distribution process, such as raw materials, manufacturing, and retail. This can create competitive advantages, such as lower costs, higher quality, and faster delivery, but also increase the risks and costs of coordination, adaptation, and innovation. How can you cope with these challenges and manage your vertically integrated firm effectively? Here are some tips and strategies to consider.