After a Company Has Decided to Vertically Integrate with Another

Multiple Choice

After a company has decided to vertically integrate with another, they will have to seriously consider whether to move upstream or downstream within their value chain. Each direction has its advantages and disadvantages and plays a crucial role in the improved efficiency post-acquisition. Which of the following is an example of forward vertical integration?

A) A local café purchases a small local coffee roaster to source their coffee beans locally.
B) A telecommunications company that manufactures cell phones acquires a marketing company to move the marketing process in-house.
C) A telecommunications company that manufactures cell phones acquires a product design firm to move the product design process in-house.
D) An auto mechanic at a small garage purchases the parts supply store next door to have quicker access to what they need to work efficiently.