Asked by Daniel Juarez on Jun 03, 2024
Verified
Growth through ___ typically occurs by acquiring suppliers or distributors.
A) strategic alliance
B) vertical integration
C) liquidation
D) divestiture
E) concentration
Vertical Integration
A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.
Acquiring Suppliers
The process of taking over or purchasing suppliers to control the supply chain, reduce costs, or secure resources.
Distributors
Entities involved in the supply chain that purchase products from manufacturers and sell them to retailers or directly to consumers.
- Investigate the strategic rationale behind the acquisition of suppliers or distributors.
- Perceive the importance of merging strategies in the advancement of business development and the improvement of operational unity.
Verified Answer
EA
Emilio Augusto Mendes MachadoJun 08, 2024
Final Answer :
B
Explanation :
Vertical integration involves acquiring suppliers or distributors in order to gain more control over the supply chain and potentially reduce costs. A strategic alliance involves partnering with another company to achieve a specific goal, liquidation involves selling off assets to pay off debts or close the business, and divestiture involves selling off a portion of the business. Concentration refers to focusing on a single product or market segment.
Learning Objectives
- Investigate the strategic rationale behind the acquisition of suppliers or distributors.
- Perceive the importance of merging strategies in the advancement of business development and the improvement of operational unity.