Best Grounds Coffee wants to pursue a vertical integration corporate level strategy. To accomplish this, it
A)develops new products, including an expresso machine.
B)purchases the supplier in Brazil that provides its coffee beans.
C)starts a cookie company to complement its production of coffee.
D)buys an electronics company that specializes in GPS devices.

Question

Quizplus · Accepted Answer

Vertical integration involves acquiring or merging with suppliers or distributors to control the supply chain. By purchasing the supplier in Brazil, Best Grounds Coffee is integrating vertically by controlling its supply of coffee beans.

Best Grounds Coffee Wants to Pursue a Vertical Integration Corporate