A manufacturer of jam buys a fruit farm - OCR - GCSE Business - Question 2 - 2020 - Paper 1

The scenario described involves a manufacturer of jam purchasing a fruit farm. This situation is best identified as a vertical takeover because the manufacturer is acquiring a business that is a part of its supply chain. By owning the fruit farm, the manufacturer can secure its supply of raw materials (fruits) for producing jam, which reflects a vertical integration strategy. This type of acquisition enhances control over the production process and can lead to cost savings and increased efficiency.