Multiple choice

Which type of growth if Vauxhall bought Arnold Clark?

  1. Horizontal

  2. Internal

  3. Diversification

  4. Forwards Vertical
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Vauxhall is a car manufacturer, whereas Arnold Clark is a major car dealership group. When a manufacturer acquires a business further down the supply chain (closer to the final consumer), it is known as forward vertical integration. This allows the manufacturer to gain more control over the distribution and retail of its products.

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