Adam's boss tells him that their company is pursuing the strategy of horizontal integration. Which of the following is true of this scenario?
A) The company will acquire one of its suppliers.
B) The company will buy or merge with one of its rivals.
C) The company will begin to distribute its own products.
D) The company will change the organizational structure to make it increasingly flat.
E) The company will merge with another company that belongs to a different industry.

Question

Quizplus · Accepted Answer

Horizontal integration refers to a strategy in which a company expands its business activities into the same or similar industry by acquiring or merging with one of its rivals. This allows the company to increase its market share and gain economies of scale. Therefore, the most appropriate choice is B.

Adam's Boss Tells Him That Their Company Is Pursuing the Strategy