MENU
A computer manufacturer purchases the company that supplies computer chips for the company. Which type of corporate strategy is the company using? Choose 1 answer
Suggested Answer: C
Get Premium Principles of Management (C483) Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
When a computer manufacturer purchases the company that supplies computer chips for the company, it is using a vertical integration strategy. Vertical integration involves expanding a company's operations into different stages of production within the same industry, such as acquiring suppliers or distributors, to increase control over the supply chain and reduce costs.
30 comments · newest first
AU
Audra
6 months ago
I feel confident about this one. Vertical integration is key!
JO
Jonell
6 months ago
Yeah, but this is about the same industry. C is definitely right.
JU
Junita
6 months ago
It’s when a company diversifies into different industries, right?
TE
Temeka
6 months ago
I’m not sure. What’s conglomerate diversification?
EL
Elden
7 months ago
Agreed! They’re controlling the supply chain.
KA
Karima
7 months ago
I think it's C) Vertical integration. Makes sense!
OW
Owen
7 months ago
Isn't this just a strategic alliance in disguise?
NA
Naomi
8 months ago
Totally agree, it's all about controlling the supply chain.
WA
Walton
8 months ago
Wait, are they really doing that? Sounds risky!
BA
Basilia
8 months ago
I think it's more like conglomerate diversification.
HE
Helga
8 months ago
I was tempted by B) Strategic alliance, but C) Vertical integration makes more sense here.
GL
Glynda
8 months ago
Haha, I bet the supplier is thrilled to be acquired. C) Vertical integration all the way!
QU
Queen
8 months ago
I agree with C) Vertical integration. Gotta love that synergy!
BE
Beatriz
9 months ago
Definitely C) Vertical integration. Buying your supplier is a textbook case of moving up the supply chain.
GI
Gilma
9 months ago
C) Vertical integration is the correct answer. The company is purchasing its supplier, which is a classic example of vertical integration.
LI
Lindsey
9 months ago
I feel confident it's vertical integration, but I guess I should double-check the definitions just to be safe.
IS
Isadora
9 months ago
I'm a bit confused; could it also be considered conglomerate diversification? It seems like they are expanding into a new area.
FE
Felicia
9 months ago
I remember a practice question about companies merging with suppliers, and I think that was also vertical integration.
GO
Goldie
9 months ago
Ugh, I'm a little confused on the difference between vertical integration and conglomerate diversification. I'll have to guess and hope for the best on this one.
ST
Stephaine
10 months ago
That's vertical integration for sure!
JA
Janessa
10 months ago
Vertical integration, got it. That makes sense since the company is bringing the supplier under its own control. I feel good about this one.
RO
Rosalyn
10 months ago
I think this might be vertical integration since they are buying a supplier, but I'm not entirely sure.
NI
Nichelle
10 months ago
Okay, let me see. The company is purchasing the supplier of a key component. That sounds like vertical integration to me. I'm pretty confident that's the right answer.
MA
Malinda
11 months ago
Hmm, I'm not totally sure about this one. I'll have to think it through carefully. Maybe I should review my notes on corporate strategies.
KE
Kenneth
11 months ago
This one seems pretty straightforward. I think the answer is C) Vertical integration.
FR
Francisca
5 months ago
Vertical integration is the way to go!
NA
Nada
5 months ago
Makes sense. It’s all about efficiency.
CO
Corrie
6 months ago
Definitely! They’re controlling their supply chain.
CA
Casie
6 months ago
I agree, it has to be C) Vertical integration.
JE
Jenifer
10 months ago
Yeah, they want to reduce costs and risks.