The purchase of Carroll's Foods for its hog-growing facilities by Smithfield Foods, the world's largest pork processor, is an example of

Question

Quizplus · Accepted Answer

This is an example of backward integration as Smithfield Foods is acquiring the hog-growing facilities of Carroll's Foods, which is a supplier of raw materials to Smithfield's processing plants. Backward integration refers to a company integrating its suppliers into its operations to gain greater control over its supply chain and ensure the availability of key inputs.

The Purchase of Carroll's Foods for Its Hog-Growing Facilities by Smithfield