Asked by Radhika Pande on May 08, 2024
Verified
A wheat mill in southern Saskatchewan purchases the trucking firm that transports packaged rice to distributors. This is an example of
A) horizontal integration.
B) forward integration.
C) backward integration.
D) current transformation.
E) keiretsu.
Backward Integration
A business strategy where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain, gaining control over suppliers or production.
Horizontal Integration
A strategy used by businesses to increase their market share by acquiring or merging with competitors operating at the same level of the supply chain.
- Gain proficiency in the wide span of supply chain management, concentrating on environmental risks and strategies for effective integration.
Verified Answer
AS
avinash singhMay 13, 2024
Final Answer :
B
Explanation :
This is an example of forward integration, as the wheat mill is acquiring a company that is further down the supply chain (transportation to distributors) to have greater control over the distribution of its own products.
Learning Objectives
- Gain proficiency in the wide span of supply chain management, concentrating on environmental risks and strategies for effective integration.