Breadmakers, Inc. produces and supplies fresh sandwich breads to various sandwich businesses. Breadmakers has recently decided to open its own stores for selling sandwiches to consumers. This is an example of:
A) forward horizontal integration
B) backward vertical integration
C) horizontal diversification
D) backward horizontal integration
E) forward vertical integration

Question

Quizplus · Accepted Answer

Forward vertical integration occurs when a company moves downstream in the supply chain, such as a supplier opening its own retail outlets to sell directly to consumers.