The purchase of Mountain Dairy milk farm would represent a vertical integration for Snowcap.
Vertical integration refers to the process of acquiring the business operations of another in order to increase supply chain efficiency and to achieve reduction of delays.
Here, the Snowcap company produces ice creams and requires the milk to facilitate its production. Therefore, the company can buy a milk plant, to enable its control the delivery of milk to the ice cream plant.
Therefore, the purchase of Mountain Dairy milk farm would represent a vertical integration for Snowcap.
Multiple Choice "a. purchasing Mountain Dairy milk farm, b. acquiring a beverage bottling plant, c. opening a personal tax accounting division, d. setting their prices lower than the competitors’ prices"
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