Which of the following was involved in John D. Rockefeller's organizational technique of horizontal integration?
A. franchising standard oil gasoline stations to independent operators
B. contolling all phases of the oil industry from drilling to commerical retailing
C. creating standardized job assignments and fixed production and sales quotas for all employees.
D. forcing small competitors to assign stock to standard oil or lose their business.
E. developing multiple uses for oil in transportation, lighting, and industry
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Of the choices given, the best is D.
Horizontal integration is the practice in which a company takes over other companies that make the same product that it does. In other words, a company that is doing horizontal integration takes over its competitors. This is in contrast to vertical integration, which is described in option B of this question.
Of the other options, D is the one that most resembles taking over one's competitors. Standard Oil essentially forced the smaller companies to become part of it by assigning their stock to the larger company.
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