A firm that expands by producing its own raw materials or acquiring a retail outlet to sell its own products is most likely using a strategy of ________.
A) consolidation
B) geographic expansion
C) vertical integration
D) diversification

Question

Quizplus · Accepted Answer

A vertical integration strategy means that a firm expands by producing its own raw materials or selling its products directly instead of using a retailer. Consolidation involves reducing the size of a firm, while geographic expansion involves taking a business overseas. A diversification corporate strategy means the firm will expand by adding new product lines.

A Firm That Expands by Producing Its Own Raw Materials