Which of the following is an example of conglomerate integration?

• A. Procter & Gamble took over Gillette to enter the male grooming market
• B. A mobile phone manufacturer takes over Carphone Warehouse
• C. Starbucks takes over a coffee bean plantation
• D. A mince pie company takes over a chocolate bar company

Answer: (A)

Conglomerate integration is when a company buys a business in an unrelated industry to diversify its activities and risk. Here, Procter & Gamble’s purchase of Gillette brings in a new product area—male grooming—that extends P&G’s reach beyond many of its existing household and consumer products into a distinct grooming line. This kind of diversification into a different market or product category is exactly what defines conglomerate integration.

The other examples show different forms of expansion: a mobile phone maker acquiring a retailer moves along the distribution chain (vertical integration); Starbucks owning a coffee bean plantation brings it closer to raw materials (backward vertical integration); and a mince pie company acquiring a chocolate bar company stays within the food industry, more like horizontal or related diversification rather than a move into an unrelated field.