- 10 Marks
SCS – Nov 2023 – L3 – Q2 – Methods of Development
NSL's adoption of backward and forward vertical integration through farming and retailing in Kumasi.
Question
Although the company’s core business is the production of shito, it has diversified into farming/cultivating some of its inputs and is also contemplating the idea of retailing shito to customers by renting gondola in supermarkets in Kumasi by 2025.
Required:
a) Clearly identify and explain the integration strategy the company is adopting by going into cultivating some inputs and the proposal to go into retailing in Kumasi.
(2 marks)
b) Explain to the Martinsons FOUR (4) potential weaknesses or disadvantages the company may or is likely to suffer with the integration strategy identified in (a) above.
(8 marks)
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