Forward Vertical Merger in Supply Chain

Steps:

• Identify the acquiring firm: fast-food multinational (produces and sells food).
• Identify the acquired firm: food-ordering website (handles customer orders and payments downstream).
• Determine integration direction: website extends the chain toward end consumers, beyond direct sales.
• Classify merger: forward vertical, as it controls distribution and sales channels.

Why C is correct:

• Forward vertical merger occurs when a company acquires a distributor or retailer to secure outlets closer to customers, per standard merger definitions.

Why the others are wrong:

• A: Backward vertical involves acquiring suppliers or upstream producers, not downstream sales platforms.
• B: Conglomerate merges unrelated industries, but both involve food services.
• D: Horizontal merges competitors at the same production level, not different chain stages.

Final answer: C