Question

"Our business needs a steady supply of raw milk," said Beatrice Gomez, CEO of Bea's Ice Cream, "But Holly Dairy Farms is unable to deliver with certainty, and they keep raising prices. This year, I want us to expand our business by buying our own dairy farm." Beatrice is advocating a(n) _________________ strategy.

Answer 1

Answer:

vertical integration strategy

Explanation:

In supply chain management, vertical integration refers to expanding the company's operations to either include some of its vendors, distributors and retailers, or both. This way, the company will be able to control the upstream of the supply chain management (vendors) and/or the downstream (distributors and retailers).

In this case, Beatrice is advocating for a vertical integration strategy in order for the company to expand into dairy farms. This way they company will control the supply of raw milk.