Certified Supply Chain Professional (CSCP) Practice Exam

In lateral integration, an organization should:

1. Focus on all operations equally

2. Emphasize core competencies while allowing specialists to manage other functions

3. Eliminate need for specialists

4. Merge with other competitors

The correct answer is: Emphasize core competencies while allowing specialists to manage other functions

In the context of lateral integration, emphasizing core competencies while allowing specialists to manage other functions is a strategy that leverages the strengths of the organization effectively. This approach recognizes that while some areas may require a broader range of operations, others benefit from specialization. By focusing on what the organization does best, it can enhance overall performance and efficiency. Allowing specialists to manage their respective functions enables the organization to benefit from their expertise, leading to improved decision-making and innovation within those areas. For example, a company may excel in product design but may not have the same level of expertise in marketing or logistics. By letting specialists handle these areas, the organization can ensure that each aspect of the business is handled by those with the most knowledge and skills. This strategy also supports collaborative efforts across different functions. While it does emphasize specialization, it also encourages the integration of those specialized functions to work together toward common organizational goals, ultimately leading to a more cohesive and responsive supply chain.