Question

Fresh n Fragrant is a chain of flower shops offering a variety of flowers and ornamental plants. It recently opened a distribution center to supply ornamental plants and cut flowers to all its stores within a 300- mile radius. From the given scenario, it can be seen that Fresh n Fragrant is practicing ___________.a) Vertical integrationb) Channel expansionc) Horizontal expansiond) Horizontal integratione) Channel diversification

Answer 1

Answer: Vertical integration

Explanation:

The vertical integration is one of the type of business management strategy that helps in managing the organization supply chain and also helps in producing the different types of products and the services.

It helps in controlling the distributors, producers and also the retailer in the business. The following are some advantages of the vertical integration are as follows:

• Helps in improving the efficiency
• Reducing the overall cost
• Helps in control the different types of functions
• Increase the share in the market

According to the given question, the fresh n fragrant is practicing the vertical integration hat helps in the manage supply chain of the company.

Therefore, Vertical integration is the correct answer.