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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

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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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Naomi
9 hours ago
Totally agree, it's all about controlling the supply chain.
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Walton
6 days ago
Wait, are they really doing that? Sounds risky!
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Basilia
11 days ago
I think it's more like conglomerate diversification.
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Helga
16 days ago
I was tempted by B) Strategic alliance, but C) Vertical integration makes more sense here.
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Glynda
21 days ago
Haha, I bet the supplier is thrilled to be acquired. C) Vertical integration all the way!
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Queen
26 days ago
I agree with C) Vertical integration. Gotta love that synergy!
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Beatriz
1 month ago
Definitely C) Vertical integration. Buying your supplier is a textbook case of moving up the supply chain.
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Gilma
1 month 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
1 month 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
2 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
2 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
2 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
2 months ago
That's vertical integration for sure!
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Janessa
2 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
2 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
3 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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Malinda
3 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.
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Kenneth
3 months ago
This one seems pretty straightforward. I think the answer is C) Vertical integration.
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Jenifer
3 months ago
Yeah, they want to reduce costs and risks.
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