Question

Which of the following corporate strategies is being employed when a large grocery store purchases a dairy farm to supply all of the store-brand milk, yogurt, butter and cheese?

a. conglomerate diversification
b. differentiation strategy
c. vertical integration
d. functional strategy

Answer 1

The correct answer is vertical integration. When a large grocery store purchases a dairy farm to supply its own brand of dairy products, it is utilizing vertical integration.

Step-by-step explanation:

The correct answer is c. vertical integration. When a large grocery store purchases a dairy farm to supply all of the store-brand milk, yogurt, butter, and cheese, it is utilizing vertical integration. Vertical integration is a corporate strategy where a company acquires or controls the supply chain of its products or services. In this case, the grocery store is integrating vertically by owning the dairy farm, which allows it to have greater control over the production and supply of dairy products.