Coca-Cola has collaborative arrangements whereby it produces concentrate that it sells to other companies to bottle its drinks.Which of the following terms best describes this type of arrangement?
A)vertical alliance
B)horizontal alliance
C)link alliance
D)scale alliance

Question

Quizplus · Accepted Answer

A vertical alliance is a collaboration between two companies in the same industry, but at different stages of the value chain. In this case, Coca-Cola produces the concentrate (an upstream activity) and sells it to other companies to bottle and distribute the drinks (downstream activities). This type of arrangement is commonly seen in the beverage industry and helps to reduce costs for both parties involved.

Coca-Cola Has Collaborative Arrangements Whereby It Produces Concentrate That It