A paper manufacturer expanding the range of its production capability to include making compatible A4 folders and plastic sheets is an example of:
A) vertical integration.
B) horizontal integration.
C) organic growth.
D) inorganic growth.
E) both horizontal integration and organic growth.

Question

Quizplus · Accepted Answer

Horizontal integration occurs when a company expands its operations into the same level of the supply chain, such as a paper manufacturer starting to produce folders and plastic sheets, which are related products. Organic growth refers to the expansion from within the business, using its own resources to increase its range of products or services, rather than through mergers or acquisitions. This scenario describes both these strategies.

A Paper Manufacturer Expanding the Range of Its Production Capability