Flexible Fittings was a small manufacturing company that made shut-off valves for gas pipe used in home and building construction. Flexible purchased the General Gas Pipeline Company, which was Flexible Fittings' largest customer. This strategic decision bringing the two companies together is called a

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Business

Araceli Burton

17 March, 20:44

Flexible Fittings was a small manufacturing company that made shut-off valves for gas pipe used in home and building construction. Flexible purchased the General Gas Pipeline Company, which was Flexible Fittings' largest customer. This strategic decision bringing the two companies together is called a

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Answers (2)

Know the Answer?

Genesis Walls · Answer 1

Merger.

A merger is the joining of 2 or more businesses to create a single, larger company.

Kristian Strong · Answer 2

Answer: forward vertical integration

Flexible Fittings was a small manufacturing company that made shut-off valves for gas pipe used in home and building construction. Flexible purchased the General Gas Pipeline Company, which was Flexible Fittings' largest customer. This strategic decision bringing the two companies together is called a forward vertical integration.

This is when two companies decide to merge, however in this scenario, flexible fittings it's a forward merger because, a manufacturer is taking over a supplier.