Asked by Frasier Williamson on Jun 18, 2024
Verified
Diversification through __________ occurs when a business seeks added value creation by acquiring suppliers or distributors.
A) concentration
B) vertical integration
C) related diversification
D) cash cows
E) divestiture
Vertical Integration
A strategy where a company expands its operations into different stages of production within the same industry, controlling multiple aspects of its supply chain.
Value Creation
The process by which companies or individuals generate increased worth for a product, service, or brand, often leading to competitive advantage and higher profitability.
- Understand the concepts of diversification, vertical and horizontal integration, and their roles in strategic management.
Verified Answer
ER
Emely RodriguezJun 22, 2024
Final Answer :
B
Explanation :
Vertical integration is the process where a company expands its operations into areas that are at different points on the same production path, such as when a manufacturer acquires its supplier or distributor to achieve greater control over its supply chain and potentially increase its market power.
Learning Objectives
- Understand the concepts of diversification, vertical and horizontal integration, and their roles in strategic management.