answer:Much of it is because the expertise of running one line of business does not apply well to a different line of business. Safeway isn’t good at making processed food, or growing food. They handle bulk purchase, distribution, warehousing and marketing and sales well. But they can’t manage making all the products they sell. By the way, American Apparel is a lousy example, as they have dismal performance, barely staying out of bankruptcy, the stock is at $0.55, and the employees are treated poorly.