Precision Automotive Parts Company (PAP) was in the midst of its strategic planning for the next three years. Historically, its primary focus was on assembly and distribution of a limited number of engine parts for small lower volume auto manufacturers. With new owners, the executives have been tasked with growing revenue at 3x its historical growth rate. Since receiving this directive, it had considered several growth alternatives. During this strategy session, almost all the executives seem to believe that expanding its plant and pursuing larger manufacturers is the best alternative. If it pursues this option, it is pursuing a strategy of
Precision Automotive Parts Company (PAP) was in the midst of its strategic planning for the next three years. Historically, its primary focus was on assembly and distribution of a limited number of engine parts for small lower volume auto manufacturers. With new owners, the executives have been tasked with growing revenue at 3x its historical growth rate. Since receiving this directive, it had considered several growth alternatives. During this strategy session, almost all the executives seem to believe that expanding its plant and pursuing larger manufacturers is the best alternative. If it pursues this option, it is pursuing a strategy of
Chapter15: Retailing, Direct Marketing, And Wholesaling
Section15.1: L.l.bean: Open 24/7, Click Or Brick
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9. Precision Automotive Parts Company (PAP) was in the midst of its strategic planning for the next three years. Historically, its primary focus was on assembly and distribution of a limited number of engine parts for small lower volume auto manufacturers. With new owners, the executives have been tasked with growing revenue at 3x its historical growth rate. Since receiving this directive, it had considered several growth alternatives. During this strategy session, almost all the executives seem to believe that expanding its plant and pursuing larger manufacturers is the best alternative. If it pursues this option, it is pursuing a strategy of
Group of answer choices
a. Transcendent integration
b. Horizontal integration
c. Vertical integration
d. Transfer integration
Expert Solution
Step 1
Expanding the business offers several benefits such as an increased customer base. As a result of the increased customer base, the sales of the business increases which further enhances profitability and efficiency. A business may opt for any strategy for expansion that aligns with its requirement.
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