Exam CSCP topic 1 question 414 discussion

i think B. Vertical integration

it is option A since acquiring only the transportation to the distribution centers not all the transportation if acquiring all the transportations it will be option B parallel integration, is indeed the most accurate description in this scenario. The brewing company's acquisition of the trucking company to deliver products to its distribution centers represents a form of parallel integration because it involves integrating a complementary service provider within the same industry segment without directly controlling the entire production or distribution process. By acquiring the trucking company, the brewing company enhances its distribution capabilities without necessarily vertically integrating its entire supply chain. This approach allows the brewing company to benefit from the trucking company's expertise and resources in transportation while focusing on its core brewing operations.

Vertical integration is a business strategy in which a company owns or controls its suppliers or distributors. In this case, the brewing company has acquired a trucking company that delivers products to its distribution centers

The relationship between the brewing company and the trucking company, where the brewing company acquired the trucking company to deliver products to its distribution centers (DCs), is an example of vertical integration. Vertical integration involves the merger or acquisition of companies that are part of the same supply chain, typically to achieve greater control over the supply chain and improve operational efficiency. In this case, the brewing company acquired the trucking company to streamline its transportation operations and ensure reliable delivery of its products to the DCs. Option A (parallel integration) and Option D (horizontal integration) refer to different types of integration that involve the merger or acquisition of companies in different industries or markets. Option C (internal integration) refers to the alignment of processes and functions within a single company.