Question: Sweet Leaf Tea, a Texas - based maker of bottled iced tea, is a small but fast - growing firm that has gained a loyal
Sweet Leaf Tea, a Texasbased maker of bottled iced tea, is a small but fastgrowing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly highfructose corn syrup, Sweet Leaf refused because of the company's mission to provide a highquality, organic beverage to consumers. The year old company has employees, and its products are available in of the US market. Sweet Leaf Tea recently received multimillion dollar investments which will enable the business to expand its national presence.
Which of the following, if true, would most likely undermine the argument that Sweet Leaf Tea should implement a corporatelevel strategy of vertical integration?
Sugar farmers used by Sweet Leaf Tea have agreed to a fixed price for the next five years so that the company can keep prices low.
Market research suggests that Sweet Leaf Tea customers primarily purchase only one flavor of tea.
Most loyal customers of Sweet Leaf Tea purchase the beverage at neighborhood convenience stores.
Sweet Leaf Tea lacks the facilities or knowledge to produce the raw ingredients for its beverages.
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