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Name: ______Hour: ______

Horizontal and Vertical Integration (Chapter 5, Section 3)

Think of a business that you could use to show the difference between horizontal and vertical integration…perhaps a McDonald’s, or your favorite store. Then assume that each box represents a business that feeds into your center business; your end result will be a fully integrated business in both examples (the lone outer box). Represent the boxes accordingly:

Fully Integrated Company

Fully Integrated Fast Food Company McDonald’s Buy out Buy out Wendy’s

Buy a food processing plant so that you turn your farm goods into food to serve your customers

Buy a farm with cattle ( meat), potatoes (french fries), and wheat (bread) Answer Key

Name: ______Hour: ______

Horizontal and Vertical Integration (Chapter 5, Section 3)

Think of a business that you could use to show the difference between horizontal and vertical integration…perhaps a McDonald’s, Starbucks or your favorite store. Then assume that each box represents a business that feeds into your center business; your end result will be a fully integrated business in both examples (the lone outer box). Represent the boxes accordingly:

_

_ _ _ _

Fully Integrated Fast Food Company _ Fully Integrated Fast Food Company

McDonald’s

Buy out Burger King

Buy out Wendy’s

_ Buy a food processing plant so that you turn your farm goods into food to serve your customers

Buy a farm with cattle (hamburger meat), potatoes (French fries), and wheat (bread) Choice Strategy

Name: ______Hour: ______

Horizontal and Vertical Integration (Chapter 5, Section 3)

Think of a business that you could use to show the difference between horizontal and vertical integration…perhaps a McDonald’s, Starbucks or your favorite store. Then assume that each box represents a business that feeds into your center business; your end result will be a fully integrated business in both examples (the lone outer box). Represent the boxes accordingly:

Fully Integrated Fast Food Company

Fully Integrated Fast Food Company McDonald’s Buy out ______Buy out ______

Buy a ______

Buy ______Closed Strategy

Name: ______Hour: ______

Horizontal and Vertical Integration (Chapter 5, Section 3)

Think of a business that you could use to show the difference between horizontal and vertical integration…perhaps a McDonald’s, Starbucks or your favorite store. Then assume that each box represents a business that feeds into your center business; your end result will be a fully integrated business in both examples (the lone outer box). Represent the boxes accordingly:

Open Ended

Name: ______Hour: ______

Horizontal and Vertical Integration (Chapter 5, Section 3)

Think of a business that you could use to show the difference between horizontal and vertical integration…perhaps a McDonald’s, Starbucks or your favorite store. Then assume that each box represents a business that feeds into your center business; your end result will be a fully integrated business in both examples (the lone outer box). Represent the boxes accordingly:

______

Visual Organization

Name: ______Hour: ______

Horizontal and Vertical Integration (Chapter 5, Section 3)

Think of a business that you could use to show the difference between horizontal and vertical integration…perhaps a McDonald’s, Starbucks or your favorite store. Then assume that each box represents a business that feeds into your center business; your end result will be a fully integrated business in both examples (the lone outer box). Represent the boxes accordingly:

Fully Integrated Fast Food Company

Fully Integrated Fast Food Company McDonald’s Buy out Burger King Buy out Wendy’s

Buy a food processing plant so that you turn your Is the vertical line correct? farm goods into food to YES serve your customers NO

Buy a farm with cattle Is the horizontal line correct? (hamburger meat), potatoes YES (french fries), and wheat NO (bread) YES/NO Strategy