Adam's boss tells him that their company is pursuing a strategy of horizontal integration,which means that the company will
A) acquire one of its suppliers.
B) buy one of its rivals.
C) begin to distribute its own products.
D) reorganize into fewer business units.
E) centralize all of its support functions.

Question

Quizplus · Accepted Answer

Horizontal integration involves purchasing or merging with a competitor in the same industry. Acquiring a supplier (choice A) would be an example of vertical integration. Distributing its own products (choice C) and centralized support functions (choice E) may be part of the strategy, but do not define horizontal integration. Reorganizing into fewer business units (choice D) does not necessarily relate to horizontal integration.

Adam's Boss Tells Him That Their Company Is Pursuing a Strategy