Horizontal and Vertical Integration Concepts

The video tutorial explains the concepts of horizontal and vertical integration in business, focusing on external growth strategies like takeovers and mergers. It describes the supply chain and how businesses can integrate forward, backward, or horizontally. Examples include the Booker Group's acquisition of Londis and Budgens, IKEA's purchase of forests, and Marriott's acquisition of Starwood Hotels. The video also mentions diversification, which will be covered separately.

What are the two main types of integration discussed in the context of external growth?

• Horizontal and Vertical

• Internal and External

• Forward and Backward

• Lateral and Linear

In a supply chain, what does forward integration involve?

• Merging with a competitor

• Buying a distributor or retailer

• Acquiring a supplier of raw materials

• Moving to a different industry

What is the primary goal of forward integration?

• To control the distribution of products

• To reduce costs by acquiring suppliers

• To merge with competitors

• To diversify into new markets

Which of the following is an example of backward integration?

• A retailer buying another retailer

• A manufacturer acquiring a distributor

• A retailer purchasing a wholesaler

• A company entering a new industry

Which company is mentioned as an example of backward integration?

• Marriott

• Booker Group

• IKEA

• Starwood Hotels

What is horizontal integration?

• Buying a business at the same stage of the supply chain

• Acquiring a supplier of raw materials

• Moving forward in the supply chain

• Entering a completely new industry

What is the key characteristic of horizontal integration?

• Entering a new industry

• Acquiring a business at a different stage of the supply chain

• Moving backward in the supply chain

• Buying a competitor at the same stage

Which of the following is NOT a type of integration discussed in the video?

• Horizontal

• Vertical

• Diagonal

• Conglomerate

Which integration strategy involves entering an entirely different industry?

• Forward integration

• Backward integration

• Horizontal integration

• Diversification

What was the result of Marriott's acquisition of Starwood Hotels?

• Marriott moved backward in the supply chain

• Marriott became the world's largest hotel chain

• Marriott entered a new industry

• Marriott became a supplier of raw materials