n 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. What do you believe is the best option for General Motors? Explain.