WGU (IAC1) Principles of Management at Western Governors University Exam - Topic 1 Question 4 Discussion

Actual exam question for WGU's WGU (IAC1) Principles of Management at Western Governors University exam

Question #: 4
Topic #: 1

[All WGU (IAC1) Principles of Management at Western Governors University Questions]

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

AConglomerate diversification

BStrategic alliance

CVertical integration

DDomain selection

Show Suggested Answer

Suggested Answer: C

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.

by Cheryl at Nov 23, 2025, 02:29 PM

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Audra

1 month ago

I feel confident about this one. Vertical integration is key!

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Jonell

2 months ago

Yeah, but this is about the same industry. C is definitely right.

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Junita

2 months ago

It’s when a company diversifies into different industries, right?

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Temeka

2 months ago

I’m not sure. What’s conglomerate diversification?

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Elden

2 months ago

Agreed! They’re controlling the supply chain.

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Karima

2 months ago

I think it's C) Vertical integration. Makes sense!

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Owen

2 months ago

Isn't this just a strategic alliance in disguise?

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Naomi

3 months ago

Totally agree, it's all about controlling the supply chain.

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Walton

3 months ago

Wait, are they really doing that? Sounds risky!

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Basilia

3 months ago

I think it's more like conglomerate diversification.

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Helga

4 months ago

I was tempted by B) Strategic alliance, but C) Vertical integration makes more sense here.

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Glynda

4 months ago

Haha, I bet the supplier is thrilled to be acquired. C) Vertical integration all the way!

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Queen

4 months ago

I agree with C) Vertical integration. Gotta love that synergy!

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Beatriz

4 months ago

Definitely C) Vertical integration. Buying your supplier is a textbook case of moving up the supply chain.

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Gilma

4 months ago

C) Vertical integration is the correct answer. The company is purchasing its supplier, which is a classic example of vertical integration.

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Lindsey

4 months ago

I feel confident it's vertical integration, but I guess I should double-check the definitions just to be safe.

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Isadora

5 months ago

I'm a bit confused; could it also be considered conglomerate diversification? It seems like they are expanding into a new area.

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Felicia

5 months ago

I remember a practice question about companies merging with suppliers, and I think that was also vertical integration.

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Goldie

5 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.

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Stephaine

5 months ago

That's vertical integration for sure!

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Janessa

5 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.

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Rosalyn

5 months ago

I think this might be vertical integration since they are buying a supplier, but I'm not entirely sure.

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Nichelle

6 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.

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