To ensure an ample supply of its famous $4.99 rotisserie chicken, Costco built a feed mill, hatchery and slaughter plant for chickens, producing 100 million chickens. However if something goes wrong at this plant, you may not be able to find a rotisserie chicken at your local Costco. This is an example of: flexibility, managing strategically different businesses, develop distinctive capabilities, the incentive problem, competitive effects, differences in optimal scale in different stages of production, compounding risk