Question 1
[10x2=20 Marks]
Select the correct answer from the given options. Indicate the letter of the correct answer next to the
corresponding question number in the given answer book.
1.1 Netflix producing its own movies is an example of:
a. Forward Vertical Integration
b. Backward Vertical Integration
c. Horizontal Integration
d. Related Diversification
e. Unrelated Diversification
1.2 Which of the following is an example of horizontal integration?
a. Coca-Cola focusing on soft drinks
b. Facebook acquiring lnstagram
c. Netflix creating original content
d. Disney launching Disney+
e. Toyota launching hybrid cars
1.3 Virgin Group's move into airlines, music, and telecoms is an example of:
a. Related Diversification
b. Unrelated Diversification
c. Market Penetration
d. Retrenchment
e. Vertical Integration
1.4 A retrenchment strategy typically involves:
a. Entering new geograph ic markets
b. Reducing costs and restructuring operations
c. Forming joint ventures
d. Launching new products in existing markets
e. Acquiring competitors
1.5 A large automobile manufacturer acquires a supplier that provides the specialised microch ips
necessary for its electric vehicle production . This move is an example of:
a. Forward Vertical Integration
b. Backward Vertical Integration
c. Horizontal Integration
d. Market Development
e. Best-Cost Strategy
1.6 Which element of the Business Model Canvas identifies the different groups of people or
organizations a business aims to reach?
a. Revenue Streams
b. Customer Segments
c. Channels
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