a) Business growth

a) how businesses grow: organic growth, forward and backward vertical integration, horizontal integration, conglomerate integration

stages of the supply chain

supplier → manufacturer → distributor → retailer

organic business growth = business growth through the use of internal resources

  • product diversification

  • investing in new capital

  • international expansion

inorganic business growth = business growth through the takeover of external resources

  • backwards vertical integration

  • forwards vertical integration

  • horizontal integration

  • conglomerate integration

backward vertical integration

  • when a firm merges with a firm backwards in the supply chain

forward vertical integration

  • when a firm merges with a firm forwards in the supply chain

horizontal integration

  • when a firm merges with a firm in the same stage of the supply chain

conglomerate integration

  • when a firm merges with a firm in an unrelated market