The decision of a major grocery chain to invest in a poultry processing plant to supply its stores is an example of forward integration.

Question

Quizplus · Accepted Answer

Forward integration refers to a company expanding its operations to control the direct distribution or supply of its products, such as a manufacturer opening retail stores. Investing in a poultry processing plant is an example of backward integration, as it involves gaining control over the supply chain or production process.

The Decision of a Major Grocery Chain to Invest in a Poultry