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View Diary: Boeing's outsourcing strategy in the spotlight as FAA grounds the Dreamliner (196 comments)

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  •  Vertical integration rules (1+ / 0-)
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    badger

    But it is out of favor with Wal*Street because they want to outsource everything — including expertise.

    I guess the outstanding example of vertical integration was the Ford River Rouge plant.

    As an example of outsourcing vs. vertical, check out this simple bean comparison at Taco Bell. They cook their own refried beans from scratch, but buy ready-made black beans for some new menu items.

    BEANS
    Pinto Beans, Soy Oil (Trans Fat Free Shortening with TBHQ and Citric Acid to Protect Flavor), Salt

    BLACK BEANS
    Water, Black Beans, Onion, Canola Oil, Flavor (Filtered Water, Yeast Extract, Dextrose, Salt, Corn Starch, Corn Oil, Flavoring, Onion Powder, Garlic Powder And Turmeric), Modified Corn Starch, Salt, Chili Powder (Chili Peppers, Spices, Garlic And Silicon Dioxide (Free Flow Agent)), Granulated Garlic, Granulated Onion, Chili Powder (A Blend Of Chili Peppers With Not More Than 2% Silicon Dioxide Added To Prevent Caking).

    "Societies strain harder and harder to sustain the decadent opulence of the ruling class, even as it destroys the foundations of productivity and wealth." — Chris Hedges

    by Crider on Fri Jan 18, 2013 at 03:35:55 PM PST

    [ Parent ]

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