Which is vertical integration and which is diversification? a) diversification b

Question

Which is vertical integration and which is diversification?

a) diversification b) vertical integration

- Delta Airlines buys Trainer, a fuel refinery

- Hershey Chocolate buys Krave Beef Jerkey

-Operating simultaneously in multiple industries or markets

-The focus firm incorporates additional steps of its value chains into its company boundaries

- Google, a company first known for an internet search engine, buys Slide, a third-party Facebook app developer

- Dunkin' Brands, owner of Dunkin' Donuts, buys Baskin-Robbins Ice Cream.

- Hilo's Seafood Restaurant in Hawaii purchases a local fishing company

.

Explanation / Answer

Vertical integration is the situation when the firm in the market is integrating with other company who use to be in its supply chain i.e the parent company uses to purchase goods from the other company.

Diversification is venturing into another market which traditionally doesn't belong to the parent company.

a) Vertical integration,

b) Diversification,

c) diversification,

d) Vertical integration,

e) Diversification,

f) Diversification,

g) Vertical integration.

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