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Category - Management

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What strategy is being implemented when a chain of grocery stores buys out a number of local farms and begins to grow its own produce?
  1. Forward integration
  2. Backward integration
  3. Horizontal integration
  4. Synergistic integration
Explanation
Answer: B - This is an example of backward integration. It is backward because the company has taken a step behind them in the supply chain and integrated that step into its core business. Backward integration is a form of vertical integration, where the a company manages multiple levels of the supply chain for a line of production.
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