ABC International is expanding by acquiring suppliers and distributors.This is called growth through
A) diversification.
B) vertical integration.
C) retrenchment.
D) globalization.

Question

Quizplus · Accepted Answer

Acquiring suppliers and distributors is an example of vertical integration, which involves expanding a company's operations through ownership or control of the whole supply chain, from raw materials to the final product or service. This allows the company to have greater control over costs, quality, and distribution, as well as to capture more of the value in the value chain. Diversification is a strategy of entering new markets or diversifying the product line, while retrenchment is a strategy of cutting back or restructuring the company's operations. Globalization involves expanding the company's operations worldwide.

ABC International Is Expanding by Acquiring Suppliers and Distributors