Backward Vertical Integration in Supply Chain

Steps:

• Identify the action: Bakery purchases flour, a key input for baking.
• Recall integration types: Vertical integration controls supply chain stages; backward moves upstream to suppliers.
• Analyze direction: Buying flour secures raw material supply, integrating with producer stage.
• Match to options: This fits vertical backwards, not other forms.

Why C is correct:

• Vertical backward integration occurs when a firm acquires control over its suppliers, as defined in business strategy, to ensure input availability.

Why the others are wrong:

• A: Conglomerate involves diversification into unrelated industries, not supply chain control.
• B: Horizontal integration merges with competitors at the same production level; "backwards" does not apply.
• D: Vertical forwards expands downstream to distribution or customers, like acquiring retailers.

Final answer: C