An organization purchases one of its suppliers in order to obtain access to the raw materials it needs for its production. The organization is using a(n) _______ corporate-level strategy.
A) international expansion
B) vertical integration
C) diversification
D) market development

Question

Quizplus · Accepted Answer

Vertical integration is a corporate-level strategy in which a company expands its business operations either backward into a new industry that produces inputs for the company's products (backward vertical integration) or forward into a new industry that uses, distributes, or sells the company's products (forward vertical integration).

An Organization Purchases One of Its Suppliers in Order to Obtain