Refer to the scenario below to answer the following questions.
Clubhouse Gourmet -A- (Scenario)
Imagine that you are the president of Clubhouse Gourmet, a successful chain of fast-food restaurants with 60 locations across Canada. The success you have experienced in the last five years has you considering various options about what to do next with the business. Should you continue to expand the business at the current rate? Or perhaps open new and different restaurants? What should you do?
-You have decided to purchase a competing chain of fast-food restaurants called Sandwich King. Once the acquisition is completed, you plan to combine their operations with those of Clubhouse Gourmet. This is an example of which growth strategy?
A) concentration
B) horizontal integration
C) unrelated diversification
D) related differentiation
E) vertical integration

Question

Quizplus · Accepted Answer

This is an example of horizontal integration, as you are acquiring and merging with a competing chain in the same industry.

Refer to the Scenario Below to Answer the Following Questions