CENTRAL BICOL STATE UNIVERSITY OF AGRICULTURE

San Jose, Pili, Camarines Sur

College of Economics and Management
S/Y 2018-2019

ABUS 110
“Agribusiness Commodity System”

Name: Aireen U. Cid BSA-4CN

Assignment:

1. Vertical integration is the merging together of two businesses that are at different
stages of production—for example, a food manufacturer and a chain of
supermarkets. Merging in this way with something further on in the production
process (and thus closer to the final consumer) is known as forward integration.

Ex. San Miguel Corporation

2. It is a type of integration strategies pursued by a company in order to strengthen

its position in the industry. A corporate that implements this type of strategy
usually mergers or acquires another company that is in the same production
stage.

Ex. PepsiCo