Which of the following corporate strategies does Chita favor?
Scenario: A global cosmetics company called Nature's Beauty is considering its corporate strategy. Several members of its board of directors believe they have the "perfect" strategy for the company. Bill believes that the best option is for Nature's Beauty to stay on its current track of offering only organic cosmetics to customers who like organic products. Chita wants the company to expand by purchasing the manufacturing plants that produce the Nature's Beauty products. Another director, Manuel, wants to build the company by adding related products, such as skin care and perfume, to be sold alongside its current products. Finally, the original owner of the company, Nuri, wants to expand the company by doing something completely new, such as building restaurants or perhaps starting an entertainment park.
A) concentration
B) vertical integration
C) lateral diversification
D) differentiation
E) conglomerate diversification
B) vertical integration
Explanation: A corporate strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses. A vertical integration strategy involves expanding the domain of the organization into supply channels such as manufacturing or to distributors.
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