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When a manufacturer acquires ownership of raw material suppliers.

    A) Vertical Integration    B) Risk of Vertical Integration   C) Backwards Integration    D) Forward Integration

     

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Question ajoutée par Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG
Date de publication: 2015/04/12
Khurram Shaukat Memon
par Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

(C) option is the right answer and it is the form of vertical integration.

Malik Mohamed
par Malik Mohamed , Consulting on Finance, HR, ERP, Work/Business Analysis, ERP, Re-structure. , Self Employed

 backward integration is the right answer

Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

C) Backwards Integration

A form of vertical integration that involves the purchase of suppliers. Companies will pursue backward integration when it will result in improved efficiency and cost savings. For example, backward integration might cut transportation costs, improve profit margins and make the firm more competitive.

Mahmood Shaikh
par Mahmood Shaikh , Assistant Manager Electrical & Instumetation (E&I) , Aisha Steel Mills Private Limited (Steel Industry)

C) Backwards Integration..............................................................................>>>>>>>>>>>>

Hany Helmy Haleem
par Hany Helmy Haleem , Director of Warehouses , Nasco Automotive

   C) Backwards Integration

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Salvatore Augello
par Salvatore Augello , owner , A.S. Trade & Consult

C) Backwards integration

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Mir Mujtaba Ali
par Mir Mujtaba Ali , Internal Audit Manager , Confidential

Agree with Mr. Haris

D. Forwards integration

Of course, it s a form of vertical integration but, the manufacturer would be selling the goods directly to the local market instead of distributor.

 

MUHAMMED HARIS MI
par MUHAMMED HARIS MI , Senior Audit Staff , Saud Bahwan Group LLC.

I think the answer is Option D-Forward Integration, Mr. Wasi ,please correct me, if my answer is wrong

Forward Integration is a strategy where a firm gains ownership or increased control over its previous customers (distributors or retailers).”

Wasi Rahman Sheikh
par Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

 Thanks to all  for giving  valuable views and answer

Deepak Tamak
par Deepak Tamak , Executive , Westcon ME

Backward integration. SCOR Model - Make Source Deliver

Utilisateur supprimé
par Utilisateur supprimé

My first impression would have been vertical integration, and yet the most correct is definitely backward integration.  Thank you Alfredo for your comprehensive answer which enrich us all.