Which of the following is an example of vertical integration?
A)A diamond mine starts to market diamond rings.
B)A hotel chain buys a diamond mine.
C)A hotel chain adds a level to its organizational structure.
D)A diamond mine improves its labour/management relations.
E)A hotel chain restructures so that its regional managers now report to the director of operations.

Question

Quizplus · Accepted Answer

Vertical integration occurs when a company expands its operations into an area that's at a different point on the same production path, such as a diamond mine starting to market diamond rings, which involves both the extraction and the retail aspects of the diamond industry.

Which of the Following Is an Example of Vertical Integration