Strategic ManagementMCQQuestion 5869 of 809
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When a manufacturing firm decides to acquire a chain of retail stores to directly sell its products to final end-consumers, it is executing which corporate-level growth strategy?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option B — Forward vertical integration

All Options:

  • ABackward vertical integration
  • BForward vertical integration ✓
  • CConglomerate diversification
  • DHorizontal integration

Detailed Solution & Explanation

Corporate Growth Strategies:
1. **Vertical Integration**: Expanding into different stages of an industry value chain.
- **Backward Integration**: Moving upstream towards raw materials/suppliers.
- **Forward Integration**: Moving **downstream towards retail distribution and end-users**.
2. Acquiring retail stores by a manufacturer moves the firm closer to customers, which is a classic **Forward Vertical Integration** strategy.
Hence, **Option B** is the correct answer.

Key Concepts to Understand

Integration

The reverse process of differentiation, used to find the area under a curve, accumulation of quantities, or to solve differential equations. Definite integration gives a numerical value; indefinite integration gives a function + constant C.

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