In the context of the Carnegie Steel Corporation, what was a primary accomplishment of vertical integration?

• A. It allowed the company to control all stages of production, from raw materials to finished steel.
• B. It resulted in the company outsourcing most of its production processes.
• C. It enabled the company to focus solely on retail sales of steel products.
• D. It led to the company merging with competitors to reduce market competition.

Answer: (A)

Verified step by step guidance

1. Understand the concept of vertical integration: it refers to a company's ownership and control over multiple stages of production or the supply chain, from raw materials to the final product.
2. Identify the context: Carnegie Steel Corporation was a major steel producer in the late 19th century, known for its innovative business strategies.
3. Analyze the options given: vertical integration typically involves controlling production stages internally rather than outsourcing or focusing only on sales.
4. Recognize that vertical integration allows a company to reduce costs, improve efficiency, and maintain quality by managing all production stages internally.
5. Conclude that the primary accomplishment of vertical integration for Carnegie Steel was controlling all stages of production, from raw materials to finished steel.