Final answer:
The examples of a pharmaceutical company buying a key ingredient manufacturer and Baptist Health becoming the sole hospital care provider in Montgomery are both instances of vertical integration, which involves a company expanding its operations into different stages of production and delivery.
Step-by-step explanation:
The question asks which of the provided options is an example of vertical integration. Vertical integration is a growth strategy where a company expands its operations into different steps along the production line, including the creation of raw materials, production process, and delivery of the final product. In the context of the provided options:
- A pharmaceutical company buying an intermediate company that manufactures a key ingredient represents vertical integration because it is acquiring control over a part of the production process that it previously did not own.
- Baptist Health buying all the hospital facilities in Montgomery, becoming the sole provider of hospital care services could be considered an example of vertical integration if these facilities are part of the production and delivery process of health services.
On the other hand, group physician practice does not inherently indicate vertical integration unless the practice includes control over different stages of service provision. The 'none of the above' option is not a correct answer when there are clearly correct examples of vertical integration provided.