Shawarma Rocket (Scenario)
Imagine that you are the president of Shawarma Rocket, a new and successful chain of 100 Lebanese fast-food restaurants. The success you have experienced in the last five years has you thinking of what to do with the business next. Should you expand the business at the current rate? Open new and different restaurants?
-Your oldest supplier, Dajaj Distributors, is a family-owned firm. Recently, the firm's president, Samer, made the decision to retire. To his disappointment, none of his five children stepped forward to take his place at the helm of the firm. Samer is concerned that if he sells his company to a larger distributor, many of his employees will lose their jobs. You approach your old friend with a generous offer to buy Dajaj and continue its current operations. Should your offer be accepted, Shawarma Rocket would be undertaking ________.

Question

Quizplus · Accepted Answer

Backward vertical integration occurs when a company acquires or merges with a supplier to control its supply chain, which is what Shawarma Rocket would be doing by buying Dajaj Distributors.

Shawarma Rocket (Scenario) Imagine That You Are the President of Shawarma Rocket, a Shawarma