Scenario D: A global cosmetics company called Nature's Beauty is considering its corporate strategy.Several members of its board of directors believe they have the "perfect" strategy for the company.Bill believes that the best option is for Nature's Beauty to stay on its current track of offering only organic cosmetics to customers who like organic products.Chita wants the company to expand by purchasing the manufacturing plants that produce the Nature's Beauty products.Another director,Manuel,wants to build the company by adding related products,such as skin care and perfume,to be sold alongside its current products.Finally,the original owner of the company,Nuri,wants to expand the company by doing something completely new,such as building restaurants or perhaps starting an entertainment park.
-Which of the following corporate strategies does Chita favor?

Question

Quizplus · Accepted Answer

Chita's strategy of purchasing the manufacturing plants that produce Nature's Beauty products is an example of vertical integration. Vertical integration involves a company expanding by either acquiring a supplier (backward integration) or a distributor (forward integration).

Scenario D: a Global Cosmetics Company Called Nature's Beauty Is