Question

If a chain of florist shops opened a plant nursery to provide gift plants and cut flowers to all of itsstores within a 300-mile radius, the chain would be practicing

A. vertical integration.B. channel expansion.C. horizontal expansion.D. opportunity incrementing. E. service marketing.

Answer 1

Vertical Integration

Step-by-step explanation:

Vertical integration is when a company has taken control of more than one stage of the supply chain. The phases of a supply chain comprises of commodities, manufacturing, distribution, and retail. A company can be said to be vertically integrated when it can controlstwo or more of these stages..

This chain of florist shops has the commodity, manufactures distributes and equally retails

Answer 2

A. Vertical Integration

Step-by-step explanation:

Vertical integration is a supply chain strategy in business. In this type of integration, a single organisation or company controls or owns and uses the retail, distribution and supply locations of its product within a particular geographical area. This is done to have a firm control on the supply chain for the product as well as the value of the product.

Some of the advantages of the vertical integration strategy is that it helps such organisations to improve their efficiencies in supply and deliver, it allows for cost reduction and also ensure that the process of supply and distribution is controlled.

However, an important disadvantage is that it requires a huge amount of capital to execute.

Since the chain of florist shops decided to make flowers available to all its stores within the 300 mile radius, it is controlling its supply and distribution chains.