Which business practice is described by the following scenario: A steel mill owner buys the mine that produces iron ore, the railroad that transports the iron ore, the factory that makes steelmaking furnaces, and the company that advertises the steel? selling stock horizontal integration scientific management vertical integration

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Superman

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13 January, 18:51

Which business practice is described by the following scenario: A steel mill owner buys the mine that produces iron ore, the railroad that transports the iron ore, the factory that makes steelmaking furnaces, and the company that advertises the steel? selling stock horizontal integration scientific management vertical integration

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Rodney Villa · Answer 1

Vertical integration

Explanation:

"Vertical integration is a strategy whereby a company owns or controls its suppliers, distributors, or retail locations to control its value or supply chain. Vertical integration benefits companies by allowing them to control the process, reduce costs, and improve efficiencies. However, vertical integration has its disadvantages, including the significant amounts of capital investment required."

Reference: Kenton, Will. "Vertical Integration." Investopedia, Investopedia, 21 Aug. 2019