If Goodyear Tires buys a rubber plantation, this is an example of
A) departmental integration.
B) quality controls.
C) backward integration.
D) value chain management.
E) reducing complexity.

Question

Quizplus · Accepted Answer

Backward integration involves a company acquiring a supplier or producer of a raw material that is used in its production process. In this case, Goodyear Tires buying a rubber plantation is an example of backward integration, as rubber is a raw material used in tire production.

If Goodyear Tires Buys a Rubber Plantation, This Is an Example