1. Expando Corp. is growing rapidly. It recently bought out its largest competitor as well as one of its main suppliers. What integration strategy (or strategies) does this expansion reflect?
a) Horizontal only
b) Backward and horizontal
c) Forward and horizontal
d) Backward and forward
2. Amerifoods Inc. exports North American food products to Western Europe. Recently, one of the company’s managers, Janey, left the company and immigrated to Eastern Europe, where she opened her own business distributing American confectionary. Business is booming, and Janey thinks that there is room for other products, such as those at Amerifoods. Janey has proposed that her company and Amerifoods each contribute equity towards a new venture. The local company will be responsible for market research and choosing the product line, as well as for local marketing and distribution, and Amerifoods will handle the North American sourcing and shipping.
What type of arrangement is Janey proposing that Amerifoods undertake?
a) Contractual distribution agreement
b) Management contracting
c) Strategic alliance
d) Wholly owned subsidiary